The Socialist Republic of Vietnam, settled in Southeast Asia, is the 15th most populated country in the world,. Vietnam’s economic growth, based on tourism and manufactured exports, was among the world’s fastest-growing. Over the past five years, strong GDP growth has mirrored this improvement, driven by export-focused manufacturing and processing sectors.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole proprietorship in Vietnam
Sole proprietorship might be the most accessible type of business to establish in Vietnam. Sole proprietors take full control of all the operations as well as the capital investment. The whole profit belongs only to the owner, and the owner has no kind of shares. In Vietnam, the owner must be over eighteen years old and have only one proprietorship in their possession. If you are interested in registering a sole proprietorship, the article below will help you with that.
Business name registration
The business name must be written in Vietnamese, even if the company is foreign-owned. The name reservation application can be filled at the Trade Register. You must select three business names, and the name must be aligned with your business structure. It may contain letters, symbols, and numbers. It can be in other languages, but it must be translated into Vietnamese.
How to register a sole proprietorship
The registration procedure is straightforward to obtain, and it takes approximately six days. You will need to collect all the required documents and to submit them to the National Business Registration Portal or send them by post to Business Registration Offices. These documents are:
- Name of your business
- Headquarter address, phone number, fax number, and email address
- Business lines
- Capital invested by the owner
- Tax registration information
- Estimated number of employees
- Full name, signature, permanent residence, nationality, ID, or passport number of the owner
- Copies of the ID card or equivalent of the owner
Within three working days, the registration authorities will issue a certificate of a registered business or reject the application with additional explanation and further instructions.
The approval of the prime minister of the state is required if the sole proprietorship proposes to conduct business in the following areas:
- Manufacturing and distribution of explosives, poison, or toxic chemicals
- Mining of certain precious minerals
- Production and supply of electricity and water on a large scale
- Manufacture of information transmitting facilities, postal and telecommunication services, broadcasting, television, and publication
- Ocean shipping and air transportation
- Specialist export and import business
- International tourism
There is no minimum capital requirement in Vietnam, but keep in mind it has to cover all the expenses until the business is self-sustainable.