U.S investors establish a technology management and consulting company in Vietnam

According to the investment report from the Foreign Investment Agency, Vietnam has granted licenses to 124 new projects from investors with U.S nationality, with a total investment capital of up to 113 million USD. The cumulative total of valid projects from U.S. investors reached 1,336 projects by December 2023. It is evident that Vietnam continues to attract investors from the United States. 

Currently, information technology companies are choosing Vietnam for technology investment projects or to support parent companies in performing tasks related to consulting and managing customer groups in the Vietnamese market. 

Establishing a technology management and consulting company in Vietnam
Establishing a technology management and consulting company in Vietnam

U.S. investors should take note of the following issues after establishing a company in Vietnam: 

1. Industry Conditions 

For the technology consulting sector, there are no specific conditions or restrictions for foreign investors in general and U.S investors in particular. The technology information sector is also witnessing significant growth, with an increasing number of foreign investors, especially those from the United States, establishing numerous technology consulting and software companies. 

2. Market Entry Conditions for U.S. Investors 

The United States became a member of the WTO on January 1, 1995, while Vietnam joined the WTO on January 11, 2007. According to the commitments on trade in services that Vietnam has undertaken, the technology sectors are open to the market for all countries that are WTO members. Therefore, the market entry conditions for U.S. investors are fulfilled. 

3. Licenses to obtain when establishing a company in Vietnam 

  • Investment Registration Certificate issued by the Department of Planning and Investment in the province/city where the investor’s headquarters is located.  

Processing time: 15 working days 

  • Enterprise Registration Certificate: issued by the Department of Planning and Investment in the province/city where the investor’s headquarters is located. 

Processing time: 05 working days 

Upon completing the application for the two licenses above, investors can proceed with operational activities for the company, including: 

    • Company Seal Engraving 
    • Opening a bank account (including investment capital account and payment account) 
    • Recruitment of labor; 
    • Buying equipment for company operations.  

4. Basic obligations Foreign investors need to comply with during operations 

  • Contribute the full and correct registered capital as committed when registering to establish a business within 90 days from the date of issuance of the Enterprise Registration Certificate. 
  • Hang the business nameplate at the headquarters. 
  • Prepare initial tax declaration documents and register license tax declaration.  
  • Quarterly and annual tax reports. 
  • Submit statistical reports and independently audited annual financial statements to tax authorities. 
  • Prepare a Member Registration Book (if it is a LLC); Shareholder registration book (if a Joint Stock Company), capital contribution certificate/share ownership certificate. 
  • Register to protect the Company’s trademark (logo): This is not required. However, registering trademark protection helps the Company increase the value of its products and services, as well as consumer recognition of the Company’s products and services. In addition, registering trademark protection helps the Company have exclusive rights to use the trademark, protecting it from infringements by other individuals and organizations. 
  • Send quarterly and annual reports online through your account on the National Investment Information System at www.dautunuocngoai.gov.vn.  
  • Send periodic investment monitoring and evaluation reports every 6 months and 1 year to the Department of Planning and Investment. 
  • Make adjustments to the Investment Registration Certificate in case of changes to the content on the Investment Registration Certificate (for example: changes to investor information, passport, industry information, investment capital investment, project implementation location, investment project name…) 
  • If you change the business registration content (for example: change the company name, headquarters, industry, capital, legal representative…), you are responsible for registering the change with business registration agency within 10 days from the date of change. 
  • Store enterprise documents at the enterprise’s headquarters according to the provisions of the Enterprise Law. 
  • Sign a written labor contract with the employee. 
  • Submit application for Work Permit and Temporary Residence Card for foreign workers.  
  • Participate in social insurance for employees. 
  • Declare the use of labor and periodically report on changes in labor during operations. 

Above is an overview of the issues that US investors in particular and foreign investors in other countries in particular need to pay attention to when planning to establish a company in Vietnam. 

 

Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Business and Investment and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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