ESTABLISHMENT OF A FOREIGN-INVESTED ENTERPRISE IN VIETNAM: ESTABLISHING FOREIGN-INVESTED SOFTWARE COMPANIES IN VIETNAM
In recent years, Vietnam has rapidly emerged as a leading Southeast Asian technology hub for international software and IT investors. With an abundant pool of skilled software engineers, competitive operational costs, and open foreign investment policies, Vietnam presents an exceptionally attractive environment for software development, IT consulting, and digital service models.
This is a sector receiving immense interest from global tech firms, venture capital funds, and foreign IT entrepreneurs. Notably, software development and IT services are non-restricted sectors regarding foreign equity ownership, allowing 100% foreign capital setup. However, establishing a foreign-invested company still requires navigating market access conditions under WTO commitments, CPC coding, and step-by-step licensing procedures.
In the article below, Dai Quang Minh Consulting will analyze in detail the market access conditions, requirements for foreign investors, and step-by-step procedures for establishing foreign-invested software companies in Vietnam under current regulations.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat:(+84) 337926405 (ID: _pouniverse)/(+84) 869672216 (ID:DQM_Verna)
- Telegram: (+84) 337926405/ (+84)869672216
I. Establishment of a Foreign-Invested Enterprise in Vietnam: Market access conditions
- Form of Investment: According to Vietnam's WTO Schedule of Commitments, computer and related services (including software implementation, IT consultancy, and data processing) are classified under sub-sectors CPC 841–845 and CPC 849. Foreign investors are permitted to access the Vietnamese market through Commercial Presence under the following forms:
+ Establishing a 100% foreign-invested economic organization;
+ Establishing a joint venture with a Vietnamese partner (with no restriction on foreign equity ownership).
- Regulations on Minimum Investment Capital: Vietnamese law does not specify a mandatory minimum statutory capital requirement for software and IT enterprises. However, investors must register a capital amount that is feasible and sufficient to cover initial operational costs (such as office lease, hardware/software procurement, and staff salaries).
II. Establishment of a Foreign-Invested Enterprise in Vietnam: Conditions for foreign investors
To obtain approval for investment registration, foreign investors in the software sector must satisfy the following fundamental legal conditions:
- Financial Capacity: Prove financial resources corresponding to the registered capital via bank balance confirmation (for individuals) or audited financial statements for the last 02 years / financial support commitment (for legal entities);
- Project Location: A valid lease agreement for office/premises with full legal documentation proving the lessor's right to lease (Land Use Rights Certificate, Construction Permit, Business Registration with real estate business function) and not located in apartment buildings designated solely for residential purposes.
- Consular Legalization of Documents: Foreign documents (such as passports, certificates of incorporation, and bank statements issued outside Vietnam) must undergo consular legalization, be translated into Vietnamese, and be notarized in accordance with Vietnamese law.
- Legal Representative and Personnel:
+ The enterprise must maintain at least one Legal Representative residing in Vietnam;
+ Foreign personnel serving as executives or key technical specialists must comply with work permit and visa/temporary residence card regulations.
Why choose Dai Quang Minh Company
With years of practical experience in legal consulting, Dai Quang Minh Company is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Company:
Human Resources: Gather a team of corporate legal experts and project legal experts with a long working history at domestic private economic groups; large foreign-invested enterprises operating in Vietnam.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Company.
Professionalism and Experience: Dai Quang Minh Company has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Company 's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Company ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Company has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Company is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Company provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Company is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
III. Establishment of a Foreign-Invested Enterprise in Vietnam: Procedure for establishing a foreign-invested software company in Vietnam
- Step 1: Apply for the Investment Registration Certificate (IRC): Foreign investors forming a new enterprise must execute investment project registration procedures to obtain an Investment Registration Certificate (IRC).
- Step 2: Apply for the Enterprise Registration Certificate (ERC): Upon receiving the IRC, the investor submits an enterprise registration dossier to the Department of Finance to obtain the Enterprise Registration Certificate (ERC). Common corporate forms include Limited Liability Company (LLC - Single or Multi-member) or Joint Stock Company (JSC).
- Step 3: Post-Licensing Announcements, Seal Creation & Opening DICA Capital Account: Announce company registration details on the National Business Registration Portal within 30 days of ERC issuance; create company seal; and open a Direct Investment Capital Account (DICA) at a licensed commercial bank in Vietnam to inject 100% of the registered capital within 90 days from ERC issuance.
- Step 4: Post-Establishment Procedures and Operational Setup: Purchase digital signatures (Token), submit license fee declarations, register electronic invoices, register Social Insurance for employees, and execute Work Permit and Temporary Residence Card (TRC) applications for foreign managers or software experts.
Prospective investors seeking assistance with establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Company provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
During the course of operations, should you have any questions or require any assistance, please contact Dai Quang Minh Company. We are always ready to provide support and accompany you throughout the process of construction, operation, and development.
We wish you sustainable development and breakthrough success.
Sincerely thank you./.
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