Legal guide for opening trading company in Vietnam

With a population of over 90 million people and a fast growing economy, the commercial market in Vietnam is valued at tens of billions of dollars. Organizations and individuals opening trading company in Vietnam should follow the order and procedures prescribed by law.

>> Read more: What do foreign investors prepare before investing in Vietnam?

1. Conditions required to opening trading company

Organizations and individuals planning to opening trading company should clearly identify the following issues:

– Address of headquarters of the company specifies the house number. Please note that dormitories and apartment buildings with residential functions must not be used as corporate addresses. The company may use the address that it owns or has the legal right to use (through a lease) as its head office;

– Select the name and type of company. The trade company name is made up of two factors: the type of company + the proper name. The company name must not be confused with the name registered by other companies. Most of the current trading companies are joint stock companies or limited liability companies;

– Individuals and organizations contributing capital to opening trading company. These are the subjects who have the right to manage and operate the activities of the trading company and also generate corresponding rights and obligations towards the company;

– The current law does not specify the minimum and maximum capital when opening trading company. Organizations and individuals that establish a company shall base themselves on the financial capacity, level of risks, business plans to decide on the charter capital of a trading company. Note that if a company trades in conditions of legal capital, it is necessary to comply. For example: a commercial company trading in real estate services has a legal capital of not less than 20 billion VND;

– Legal representative of trading company. The law requires a company to have at least 01 individual who is the legal representative. This is the subject who has the right to represent the company to sign and participate in civil relations. A commercial company may have more than one legal representative, depending on its needs.

 

2. Procedures for opening trading company

The trading company has the legal entity status and is officially allowed to operate after it is granted an enterprise registration certificate (ERC) by the competent state agency. What are the documents and order to opening trading company?

2.1. Profile opening trading company

Organizations and individuals planning to opening trading company shall prepare one set of documents, including the following documents:

– An application for enterprise registration, made according to a form corresponding to each type of company;

– Company rules;

– List of members for two-member limited liability companies; shareholders for joint stock companies;

– Certified copy of papers

+ Valid ID card or passport for the company founder being an individual;

+ Business registration certificate, establishment decision with the company founder being an organization. Valid ID card or passport of the organization’s legal representative.

– Decision of capital contribution to the company founder being an organization;

– In case a foreign investor participates in opening a trading company, it is necessary to have an investment registration certificate (IRC) issued by a competent state agency.

2.2. Competence to receive and process applications for opening trading company

The Business Registration Office of the province/city where the commercial company is headquartered is competent to receive and handle applications for registration of establishment of commercial companies. Professionals when receiving records are responsible for checking records. In case the dossier is incomplete guide additional submitters. In case the dossier is complete write an appointment to return the result. Processing time for opening trading company is 03 working days from the date of receipt of the file.

In case of valid documents, Business Registration Office will issue the enterprise registration certificates (ERC) to the trading company. In case of refusing to grant a certificate, the Department must reply in writing, clearly stating the reason.

3. The work to be done after opening trading company

Commercial companies officially come into operation and have legal status after being granted enterprise registration certificates (ERC). However, the company still needs to do the following to ensure its operations:

– Buy digital signatures, buy electronic invoices;

– Initial tax declaration, electronic invoice issuance notice;

– Engrave company seal, form notification on National Business Registration Portal;

– Hanging up the company sign at the registered head office address.

Why should you use our service?

With over 10 years of experience operating in the field of law with a team of experienced, enthusiastic personnel. LNP LAW is confident to bring the best service to customers in the fields of Investment, Intellectual Property, Business. The above article has summarized the Legal guide for opening trading company in Vietnam.

Customers wishing to open a trading company in Vietnam will receive the services:

– Advice, support, answer your questions related to the issues of opening trading company and legal issues after the establishment of the company;

– Drafting papers related to procedures for opening trading company in Vietnam

– Representing customers to submit documents, receive results, solve legal issues with the competent state agencies when opening trading company;

– Carry out the work after establishing the trading company in section 3;

– Other jobs requested by customers.