Company Formation in Vietnam: The Complete Guide for Foreign Investors (2026)

Why Foreign Companies Incorporate in Vietnam

Vietnam has moved from an emerging market curiosity to a serious contender for foreign business establishment. The reasons are structural, not speculative, and they extend well beyond low labour costs. Here are seven advantages that make Vietnam a compelling incorporation destination for foreign investors.

1. 100% Foreign Ownership in Most Sectors

   Vietnam permits full foreign ownership across the majority of business activities. Unlike several ASEAN neighbours that mandate local partners or cap foreign equity at 49%, Vietnam's Investment Law allows foreigners to hold 100% of a limited liability company in any sector not explicitly restricted under WTO commitments. This is a genuine structural advantage. For IT services, consulting, manufacturing, trading, and dozens of other activities, you do not need a Vietnamese co-founder. That said, conditional and restricted sectors do exist, and understanding where your business activity falls is the single most important step before you begin.

2. Competitive Operating and Labour Costs

   Vietnam's operating costs remain substantially below regional averages. Monthly office rent in Ho Chi Minh City's business districts runs USD 15-30 per square metre, roughly one-third of Singapore and half of Bangkok (Savills Vietnam, Q4 2025 market report). The statutory minimum wage ranges from VND 4.68 to 4.96 million per month depending on region (Decree 74/2024/ND-CP, effective July 2024), and skilled mid-level professionals in fields like accounting, engineering, and marketing typically earn USD 600-1,500 monthly (Robert Walters Vietnam Salary Survey 2025). These economics apply to everything from warehousing and manufacturing to white-collar operations, making Vietnam attractive not just for production but for building genuine operational teams.

3. Extensive Free Trade Agreement Network

   Vietnam is a signatory to 16 free trade agreements (Ministry of Industry and Trade), more than almost any other country in Southeast Asia. The CPTPP provides preferential access to markets including Canada, Japan, Australia, and Mexico. The EVFTA eliminates tariffs on over 99% of goods traded with the European Union (European Commission, EVFTA summary). RCEP connects Vietnam to the broader Asia-Pacific trade bloc. For companies that export, these agreements translate to measurable tariff savings and simplified rules of origin. Incorporating in Vietnam allows your company to issue certificates of origin that unlock these preferential rates, a benefit you cannot access through a representative office alone.

4. Young, Educated, and Growing Workforce

   Vietnam's population of approximately 100 million (General Statistics Office of Vietnam, 2025) has a median age of 31 years (CIA World Factbook, 2025 estimate). The country produces over 400,000 university graduates annually (Ministry of Education and Training), with particular strength in engineering, technology, and business fields. Literacy rates exceed 95% (UNESCO Institute for Statistics). For foreign companies, this means a deep and renewable talent pool at wage levels that remain competitive by global standards. The workforce is also increasingly experienced with foreign business practices, particularly in Ho Chi Minh City and Hanoi, where exposure to international firms has created a generation of professionals comfortable operating across languages and business cultures.

5. Strategic Location at the Centre of ASEAN

   Vietnam sits on major shipping routes connecting Northeast Asia to Southeast Asia and beyond. Ho Chi Minh City is a three-hour flight from Singapore, Bangkok, and Kuala Lumpur, and five hours from Hong Kong and Shanghai. The country's coastline spans over 3,260 kilometres (General Statistics Office of Vietnam) with deep-water ports at Hai Phong, Da Nang, and Vung Tau. For companies building regional supply chains or serving ASEAN markets, Vietnam offers genuine logistical advantages. Time zone alignment with the rest of Southeast Asia and proximity to southern China's manufacturing ecosystem add further operational convenience.

6. Rapidly Growing Domestic Consumer Market

   Vietnam's GDP has grown at an average of 6-7% annually over the past decade (World Bank, Vietnam Economic Update series), and its middle class is projected to reach 50 million people by 2030 (Boston Consulting Group, "Vietnam's Next Chapter" report). E-commerce penetration is accelerating, with the digital economy valued at over USD 23 billion (Google-Temasek-Bain e-Conomy SEA report, 2024). This is not only an export platform; it is a consumer market in its own right. Foreign companies incorporating in Vietnam increasingly do so not just to manufacture for export but to sell directly to Vietnamese consumers. Retail, food and beverage, education, health tech, and consumer services are all seeing significant foreign investment driven by domestic demand.

7. Government Commitment to FDI Attraction

   Vietnam's government has maintained a consistent policy stance favouring foreign direct investment for over three decades, dating back to the Doi Moi reforms of 1986. Investment incentives including corporate income tax holidays, reduced rates for prioritised sectors, and land-use fee exemptions are codified in the Investment Law 2020 and the Corporate Income Tax Law (Law No. 14/2008/QH12, as amended). Special economic zones and industrial parks offer additional administrative support (Decree 35/2022/ND-CP on industrial parks and economic zones). While bureaucracy exists, the policy direction is clear and stable. Provincial-level investment promotion agencies actively court foreign firms, and the regulatory framework, while complex, is designed to facilitate, not obstruct, legitimate foreign business establishment.

To put Vietnam in regional context, here is how it compares to the other ASEAN destinations most commonly considered by foreign investors setting up operations in Southeast Asia.

Business Entity Types for Foreign Company Formation in Vietnam

Vietnamese law provides several entity structures for foreign investors. Choosing the right one at the outset is critical because changing entity types after registration involves substantial paperwork, cost, and delay. The following table summarises the options most relevant to foreign investors.

For the vast majority of foreign investors entering Vietnam, the single-member LLC is the default and correct choice. It offers 100% foreign ownership, the simplest governance structure, and the ability to engage in trading, services, and manufacturing. There is no board requirement, no minimum number of shareholders, and a single individual or corporate entity can serve as the sole owner.

The multi-member LLC is appropriate when two or more investors want to share ownership, or when a Vietnamese partner is required for conditional sectors. The JSC introduces additional governance complexity, including a board of directors, supervisory board, and shareholder meeting requirements, that is unnecessary for most SMEs but required if you plan to list shares or attract a large number of investors. Representative offices and branch offices are niche structures with significant limitations and are not suitable for companies that need to generate revenue in Vietnam.

Foreign Ownership Rules: Can Foreigners Own 100% of a Company in Vietnam?

The short answer is yes, in most sectors. Vietnam's Investment Law 2020 (Law No. 61/2020/QH14) and its implementing Decree 31/2021/ND-CP establish the framework for foreign market access. Business activities are classified as open, conditional, or restricted based on Vietnam's WTO commitments and domestic regulations. Open sectors permit 100% foreign ownership with no special conditions. Conditional sectors may impose equity caps, require Vietnamese partners, or mandate additional approvals from line ministries.

Understanding where your specific business activity falls within this framework is the single most important step before you invest time and money in the incorporation process. The following table provides an overview of common business activities and their foreign ownership status as of 2026.

What "Conditional" Actually Means in Practice

Conditional does not mean impossible. It means the foreign investor must satisfy additional requirements beyond the standard incorporation process. These requirements vary by sector and may include equity caps (e.g., foreign ownership limited to 49% or 51%), mandatory joint venture with a Vietnamese partner, minimum capital thresholds, approval from a line ministry (e.g., Ministry of Education for training centres, Ministry of Industry and Trade for retail), or an Economic Needs Test (ENT) for additional retail or distribution outlets. The ENT is particularly relevant for retail businesses: the first outlet is permitted without ENT, but each subsequent outlet in a different province requires a test evaluating market demand, population density, and existing retail capacity.

The practical implication is that conditional sectors require more planning, longer timelines, and often higher costs. If your business activity falls into a conditional category, engaging a qualified advisor before you begin the incorporation process is essential, not optional. The cost of discovering a regulatory barrier after you have already invested in documents, legalisation, and office leases is significantly higher than the cost of a market access review at the outset.

How to Register a Business in Vietnam: Step-by-Step Process

The incorporation process for a foreign-owned company in Vietnam involves multiple sequential steps, each with its own document requirements, government touchpoints, and processing timelines. Understanding the full sequence before you begin helps you set realistic expectations and avoid the delays that catch unprepared investors. Here is the process as we execute it for our clients and as we have experienced it ourselves across four entity incorporations.

1. 1

   Initial Consultation & Market Access Review

   Before any documents are prepared, we conduct a thorough review of your intended business activities against Vietnam's WTO commitments, the Investment Law 2020 (Law No. 61/2020/QH14), and relevant sector-specific regulations. This determines whether your business lines qualify for 100% foreign ownership, require conditional approvals under the market access conditions set out in Decree 31/2021/ND-CP, or face restrictions. We also advise on entity type, registered capital levels, and legal representative requirements under the Enterprise Law 2020 (Law No. 59/2020/QH14). This step prevents the most expensive mistake in Vietnam incorporation: discovering regulatory barriers after you have already committed time and money to the wrong structure. The market access review typically takes three to five working days.

2. 2

   Document Preparation & Legalisation

   All foreign-sourced documents must be consular-legalized by the Vietnamese embassy or consulate in the country of origin, then notarised and translated into Vietnamese by a certified translator in Vietnam. This applies to passports, corporate documents for entity investors, powers of attorney, and bank balance statements. We prepare complete bilingual dossiers (Vietnamese and English) for all government submissions. Legalisation timelines vary by country but typically take five to ten working days. For Singapore-based investors, consular legalisation is handled through the Vietnamese Embassy in Singapore. We coordinate the entire document chain to ensure nothing is rejected at submission.

3. 3

   Enterprise Registration Certificate (ERC)

   The ERC is your company's birth certificate. It is issued by the Department of Planning and Investment (DPI) in the province where your company will be registered, following the procedures set out in Decree 01/2021/ND-CP on enterprise registration. The application includes the company name, registered address, business lines (coded to Vietnam's national industry classification system, or VSIC), charter capital, legal representative details, and ownership structure. We prepare and submit the complete dossier, respond to any queries from the registration officer, and collect the certificate upon issuance. Standard processing time is seven to ten working days from accepted submission, consistent with the statutory timeline under Decree 01/2021/ND-CP. The ERC contains your company's tax identification number and enterprise registration number.

4. 4

   Company Seal Registration

   Vietnamese companies are required to have a registered company seal, which must be used on contracts, invoices, and official correspondence. The seal is engraved with the company name and enterprise registration number. Since 2021, companies can choose their own seal design and are no longer required to register it with the police, but the seal specimen must be registered on the National Enterprise Registration Portal and notified to the DPI. We handle seal engraving, registration, and notification. This step is completed within the post-registration phase and takes one to two working days.

5. 5

   Post-Registration Setup

   With the ERC and company seal in hand, several administrative registrations must be completed before the company is operational. These include opening a corporate bank account (both VND and foreign currency), purchasing a three-year digital signature certificate for electronic tax filing, registering for electronic tax submission with the General Department of Taxation, filing the initial tax declaration, and paying the annual Business Licence Tax. We advise on bank selection, as not all Vietnamese banks handle foreign-invested companies smoothly, and we accompany you through the account opening process. This phase takes three to five working days.

6. 6

   Investment Registration Certificate (IRC)

   For foreign-invested companies, the IRC is the investment licence issued by the DPI or, for larger projects, the provincial People's Committee, as governed by Articles 38 and 39 of the Investment Law 2020 (Law No. 61/2020/QH14). It records the investment project details including total investment capital, charter capital, investment objectives, project duration, and any incentives. The IRC application requires a detailed investment project proposal, financial capacity evidence, and supporting documents as specified in Decree 31/2021/ND-CP. Processing times are officially 15 working days but in practice take 25 to 30 working days, particularly when the DPI consults with line ministries for conditional sectors. We manage the entire submission, follow-up, and collection process.

7. 7

   Charter Capital Contribution

   After the ERC is issued, the company's owners have 90 days to contribute the full registered charter capital to the company's corporate bank account, as required under Article 47 of the Enterprise Law 2020 (Law No. 59/2020/QH14). This is not optional. Failure to contribute within 90 days requires the company to reduce its charter capital to the amount actually contributed, register the change with the DPI under Decree 01/2021/ND-CP, and may trigger administrative penalties. For corporate investors, the contribution must come from the investing entity's account. We track this deadline, advise on transfer mechanics and documentation, and ensure the capital contribution certificate is properly issued and filed.

The entire process, from initial consultation to fully operational company, typically takes six to ten weeks for open sectors. Conditional sectors requiring additional ministry approvals should plan for three to four months. Some steps run in parallel; for example, document legalisation can proceed while the office lease is being finalised.

Documents Required to Incorporate a Company in Vietnam

The document requirements for foreign company incorporation in Vietnam are extensive and unforgiving. A single missing legalisation, an expired bank statement, or an incorrect address on a lease contract will result in the application being returned. The following checklist covers every document you will need, with notes on the specific requirements that cause the most frequent delays.

• Valid Passport (Notarised & Legalised Copy)

  A certified copy of the passport of each individual investor and the designated legal representative. The passport must be valid for at least six months from the date of application. The copy must be notarised in the country of issue and then consular-legalized by the Vietnamese embassy or consulate. This is the most fundamental document in the dossier. If the legalisation is done incorrectly, the entire application will be rejected at submission.

• Bank Balance Statement

  A recent bank statement or balance certificate showing available funds equal to or exceeding the proposed registered charter capital. This proves financial capacity to make the required capital contribution. The statement should be issued within 30 days of application, on official bank letterhead, and must be consular-legalized and translated into Vietnamese. Some DPIs accept statements in USD or SGD; others require conversion to VND. We advise on the specific requirements of the target province.

• Corporate Investor Documents

  If the investor is a company rather than an individual, you will need the investing company's certificate of incorporation, memorandum and articles of association, board resolution authorising the investment, and a certificate of good standing or equivalent. All documents must be consular-legalized and translated. For Singapore-registered companies, these documents are obtained from ACRA and legalised through the Vietnamese Embassy in Singapore.

• Legal Representative Appointment Documents

  The legal representative is the person authorised to sign on behalf of the company and bear legal responsibility. You must provide their passport copy (notarised and legalised), a curriculum vitae, and an appointment letter or board resolution confirming their role. If the legal representative is not an investor, a separate employment contract or appointment decision is typically required. The legal representative must have a valid work permit or be exempt under Vietnamese labour law.

• Office Lease or Rental Contract

  A signed lease or rental agreement for the premises that will serve as the company's registered address. The address must be a commercial property; apartments and residential addresses are not accepted for business registration. The lease must be in the landlord's name (matching the ownership certificate) and specify the permitted use as commercial or office purposes. We review all lease contracts before submission to ensure they meet DPI requirements.

• Landlord's Ownership Certificate

  The property owner must provide a copy of their land use right certificate or building ownership certificate for the registered address premises. This proves the landlord has the legal right to lease the property. If the property is owned by a company, the company's business registration certificate may also be required. This document is obtained from the landlord and does not need consular legalisation since it is a Vietnamese-issued document.

• Sublease Agreement (If Applicable)

  If you are leasing from a tenant rather than directly from the property owner, a sublease agreement is required along with evidence that the head lease permits subleasing. This is common in co-working spaces and serviced offices. The sublease chain must be documented from the property owner through to your company. Missing sublease documentation is one of the more frequent causes of application delays, as the DPI will verify the chain of lease authority.

• Consular Legalisation of All Foreign Documents

  Every document originating outside Vietnam must undergo consular legalisation, meaning authentication by the Vietnamese embassy or consulate in the country where the document was issued. This is distinct from apostille, which Vietnam does not recognise. The process typically takes five to ten working days and involves submitting original notarised documents to the Vietnamese diplomatic mission. We coordinate the legalisation process for clients in Singapore, and provide guidance for clients based in other countries.

• Notarised Vietnamese Translation

  All foreign-language documents submitted to Vietnamese government authorities must be accompanied by a notarised Vietnamese translation. The translation must be performed by a certified translator in Vietnam and then notarised by a Vietnamese notary public. Machine translations and informal translations are not accepted. We handle all translation and notarisation through our network of certified translators, ensuring consistency of terminology across the entire dossier.

For Singapore-Based Investors: Specific Guidance

A significant proportion of foreign investors incorporating in Vietnam are based in Singapore, and the process has several Singapore-specific considerations that are worth addressing separately.

Consular legalisation through the Vietnamese Embassy in Singapore. All foreign-sourced documents (passport copies, ACRA extracts, board resolutions, bank statements) must be consular-legalized at the Vietnamese Embassy in Singapore, located at 10 Leedon Park. The process typically takes five to seven working days. Documents must first be notarised by a Singapore notary public before submission to the embassy. We coordinate the entire legalisation chain for Singapore-based clients, including document collection, notarisation, embassy submission, and courier back to Vietnam.

Vietnam-Singapore Double Taxation Agreement (DTA). The DTA between Vietnam and Singapore, in effect since 1994, reduces withholding tax rates on dividends (5% for 25%+ ownership, 12.5% otherwise), interest (10%), and royalties (10%). This is directly relevant to profit repatriation planning. Singaporean parent companies investing in Vietnamese subsidiaries should structure their holdings to qualify for treaty benefits from the outset. Proper documentation of tax residency status is required to claim DTA rates.

CPTPP benefits for goods trade. Both Singapore and Vietnam are CPTPP signatories. For Singapore-based companies manufacturing in or exporting from Vietnam, the CPTPP provides preferential tariff treatment for goods shipped to other CPTPP markets including Japan, Canada, Australia, Mexico, and Chile. Rules of origin requirements must be met, and certificates of origin must be issued by the Vietnamese entity, which requires an operational company, not just a representative office.

Practical advantages of Singapore as a base. Singapore is a three-hour direct flight from Ho Chi Minh City, with multiple daily connections on Singapore Airlines, VietJet, and other carriers. Time zone difference is one hour. Major Vietnamese banks including Vietcombank and BIDV have correspondent relationships with Singapore banks, simplifying international wire transfers. Several Singapore-based law firms have Vietnam desks or affiliated offices in Ho Chi Minh City and Hanoi. These practical factors make Singapore the most convenient base from which to establish and manage a Vietnamese subsidiary.

How Much Does It Cost to Set Up a Company in Vietnam?

Cost transparency is rare in the Vietnam incorporation market. Many service providers quote a headline fee that excludes essential items, leaving investors to discover additional charges during the process. This section provides a comprehensive breakdown based on our direct experience incorporating four entities and advising others through the process.

The following table separates government fees, which are fixed and non-negotiable, from service provider fees, which vary by provider and scope of service.

Be cautious of service providers advertising incorporation fees below USD 1,000. At that price point, you are typically getting document filing only: no market access review, no bilingual dossier preparation, no government liaison, and no post-registration support. The provider may also not carry professional liability insurance. When problems arise during the process (and they frequently do), you are on your own.

When evaluating providers, ask specifically what is included in their quoted fee: Does it cover the market access review? Document legalisation coordination? Vietnamese translations and notarisation? Post-registration setup (bank account, digital signature, tax registration)? Follow-up with the DPI if queries arise? The answers to these questions determine whether the quoted fee represents the actual cost or just the first instalment of a longer series of charges.

8 Mistakes That Delay Vietnam Company Registration

After four incorporations and numerous advisory engagements, we have catalogued the mistakes that most frequently delay or derail the registration process. Every one of these has cost real investors real time and money. Avoiding them is straightforward if you know to look for them.

• Choosing the Wrong Entity Type

  The most consequential mistake is selecting an entity type that does not match your business objectives. A representative office cannot generate revenue. A branch office has limited operational scope. A JSC introduces governance complexity you may not need. Most foreign SMEs should default to a single-member LLC unless there is a specific reason not to. Changing entity types after registration is possible but involves significant paperwork, cost, and time. Get this right at the outset.

• Using an Apartment as Your Registered Address

  Vietnamese authorities require a commercial address for business registration. Apartments, residential properties, and addresses without a valid commercial-use designation will be rejected. Some investors lease an apartment, assume it will work, and discover the problem only when their application is returned. Co-working spaces can work if the sublease chain is properly documented, but verify this before signing any lease. The registered address must match the landlord's ownership certificate and be zoned for commercial use.

• Insufficient Capital Proof at Application

  The bank balance statement must show funds equal to or exceeding your proposed charter capital. Submitting a statement that shows a lower balance, is dated too far in advance, or lacks proper bank authentication will result in rejection. The statement must also be consular-legalized and translated, which takes time. We have seen investors scramble to move funds between accounts days before submission because they did not plan for this requirement early enough in the process.

• Missing the 90-Day Capital Contribution Deadline

  After the ERC is issued, investors have exactly 90 days to transfer the full charter capital into the company's Vietnamese bank account. This is a hard deadline. Missing it requires the company to formally reduce its charter capital, register the change with the DPI, and may trigger fines. In serious cases, it can affect the validity of the company's registration. Set a calendar reminder the day your ERC is issued and begin the transfer process immediately, accounting for international wire transfer processing times.

• Not Understanding Conditional Sector Requirements

  Investors frequently assume that because Vietnam allows 100% foreign ownership in many sectors, it allows it in all sectors. This is incorrect. Education, logistics, advertising, real estate, retail (beyond one outlet), and numerous other activities carry conditions that range from equity caps to mandatory ministry approvals. Discovering these conditions after you have prepared documents and selected an address wastes time and money. A market access review at the start of the process is the only way to avoid this.

• Skipping or Incorrectly Handling Consular Legalisation

  Every foreign document must be consular-legalized by the Vietnamese embassy in the country of origin. Apostilles are not accepted. Notarisation alone is not sufficient. The legalisation must be done before the documents arrive in Vietnam, not after. We regularly encounter investors who have had documents notarised in their home country but not legalized, or who have confused apostille with consular legalisation. This error adds two to four weeks to the timeline as documents must be sent back for proper processing.

• Underestimating Post-Registration Compliance

  Getting the certificates is not the finish line. A newly incorporated company in Vietnam must open bank accounts, register a digital signature, set up electronic tax filing, file initial tax declarations, pay Business Licence Tax, appoint a chief accountant or outsource the function, and register with labour authorities. Companies that treat incorporation as complete at certificate issuance often discover months later that they have missed tax filing deadlines, face penalties, or cannot issue legitimate invoices because their electronic tax setup was never completed.

• No Plan for a Resident Legal Representative

  Every Vietnamese company must have at least one legal representative who is physically present in Vietnam or who formally delegates authority when absent for more than 30 consecutive days. If you are incorporating from abroad and do not plan to relocate, you need a plan for this role. Options include appointing a trusted local hire, a co-founder based in Vietnam, or a professional nominee, each with trade-offs around control, cost, and liability. Leaving this unresolved creates operational paralysis when contracts need signing or government responses are required.

What Happens After You Register a Company in Vietnam

Many investors treat receiving the Enterprise Registration Certificate as the finish line. It is not. The ERC and IRC establish the company as a legal entity, but several critical administrative steps must be completed before the company can actually operate: issue invoices, hire staff, file taxes, and conduct business. Neglecting these steps leads to compliance gaps, penalties, and operational paralysis.

The post-registration phase typically takes three to five working days if handled efficiently, but can stretch to several weeks if tasks are addressed reactively rather than proactively. Here is what needs to happen.

Corporate Bank Account Opening. The company needs at least two accounts: a VND account for domestic transactions, tax payments, and payroll, and a DICA (Direct Investment Capital Account) in foreign currency for receiving foreign capital contributions and repatriating profits. Not all Vietnamese banks handle foreign-invested companies smoothly. In our experience, Vietcombank, ACB, and Techcombank have the most established processes for foreign-invested entities, though requirements vary by branch. The legal representative must typically appear in person for account opening. Allow two to five working days for the account to become active.

Digital Signature Registration. A USB-based digital signature token is mandatory for electronic tax filing, electronic invoice issuance, and online submissions to government portals. The certificate is issued by an authorised certification provider and is typically valid for three years. Without it, the company cannot file tax returns or issue VAT invoices, effectively preventing any commercial activity. Cost is VND 3 to 5 million for a three-year certificate.

Electronic Tax Filing and Initial Declarations. All companies in Vietnam must register for electronic tax filing through the General Department of Taxation portal. Paper submissions are not accepted for standard companies. Upon registration, the company must file an initial tax declaration and register for the applicable tax types: corporate income tax (CIT), value-added tax (VAT), personal income tax (PIT) withholding, and Business Licence Tax. The Business Licence Tax must be paid within 30 days of ERC issuance.

Chief Accountant Requirement. Vietnamese law requires every company to have a designated chief accountant who holds a Vietnamese accounting practice certificate. This person is legally responsible for the company's financial records and compliance with accounting standards. For most foreign-invested SMEs, the practical solution is to outsource this function to a Vietnamese accounting firm. Monthly accounting and tax filing services typically cost USD 150 to 400 per month depending on transaction volume and complexity.

Labour Registrations. If the company will hire employees, it must register with the district-level labour authority and enrol in the social insurance, health insurance, and unemployment insurance schemes. Both employer and employee contributions are mandatory. The employer's combined contribution rate is approximately 21.5% of the employee's gross salary (Social Insurance Law 2014, as amended). These registrations should be completed before the first employee's start date.

Work Permits and Visas for Foreign Founders and Employees

Any foreign national working in Vietnam requires a work permit issued by the provincial Department of Labour, Invalids and Social Affairs (DOLISA), unless they qualify for a specific exemption. The work permit application requires a criminal background check from the applicant's home country (consular-legalized), a health check from a designated Vietnamese hospital, certified copies of qualifications, and evidence of at least five years of relevant work experience or a university degree in the relevant field.

Work permit exemptions exist for several categories relevant to foreign founders: owners or capital contributors of LLCs, members of the board of directors of JSCs, and intra-company transferees assigned for less than three months. However, the exemption must be formally approved by DOLISA; it is not automatic. The exemption application requires supporting documentation including proof of capital contribution or board appointment.

For initial entry and short-term stays, foreign founders typically use a business visa (DN category) or an e-visa. The DN visa allows stays of up to 90 days and can be single or multiple entry. Once the work permit is issued, a temporary residence card (TRC) valid for up to two years can be obtained, eliminating the need for repeated visa renewals. We advise clients to initiate the work permit process in parallel with incorporation to minimise the gap between company establishment and the founder's ability to legally work in Vietnam.

DIY vs. Service Provider vs. Law Firm: Choosing Your Incorporation Approach

There are three basic approaches to incorporating a company in Vietnam, each with distinct trade-offs in cost, timeline, and risk. Your choice should depend on your budget, tolerance for administrative complexity, and how much time you can personally invest in the process.

The DIY approach is theoretically possible but rarely practical for foreign investors. All documents must be in Vietnamese, government officers at the DPI typically do not communicate in English, and the procedural knowledge required to navigate queries and resubmissions is hard to acquire without prior experience. Most DIY attempts by foreign investors result in multiple rejected submissions and a timeline that stretches to three months or longer. The cost savings of USD 2,000 to 5,000 are quickly offset by the time cost and the risk of structural mistakes that are expensive to correct later.

A law firm is the right choice for complex structures: conditional sectors requiring ministry approval, joint ventures with Vietnamese partners, projects involving significant regulatory risk, or situations where a formal legal opinion is needed for parent company governance or investor due diligence. For a straightforward single-member LLC in an open sector, a law firm adds cost and time without proportional value. The middle path, a competent service provider with demonstrated experience in foreign-invested company registration, delivers the best balance of cost, speed, and reliability for most SME founders.

Our Vietnam Company Formation Service

We offer incorporation support because we have done it ourselves, repeatedly, and we understand the difference between what guides say and what actually happens at the DPI window. Our co-founders have incorporated four entities in Vietnam across different sectors and provinces. That direct experience shapes every aspect of how we manage the process for clients.

Every dossier we prepare is bilingual (Vietnamese and English) so you know exactly what is being submitted to the government on your behalf. This is not standard practice among Vietnamese service providers, many of whom prepare documents only in Vietnamese and provide verbal summaries to foreign clients. We believe you should be able to read and understand every document that bears your company's name.

We handle all government liaison directly, including follow-up visits to the DPI, responses to queries from registration officers, and coordination with tax authorities for post-registration setup. Our process includes a comprehensive market access review before any documents are prepared, ensuring that your chosen business activities, ownership structure, and capital levels are compatible with Vietnamese regulations before you commit to the incorporation timeline.

We are transparent about what we are and what we are not. We are not a law firm and do not provide legal opinions or represent clients in disputes. For straightforward incorporations in open sectors, which account for the majority of foreign SME setups, our operator-led approach delivers faster timelines, lower costs, and more practical guidance than a traditional law firm engagement. For complex structures in conditional sectors, we will tell you directly if you need a lawyer and can refer you to firms we trust.

How We Helped a Singapore E-Commerce Company Incorporate in Vietnam

Vietnam Company Incorporation FAQ