What is corporate compliance monitoring?
Under Vietnamese laws keeping your company compliant can be challenging as many administrative and legal compliance routine tasks are mandatory.
How to proceed?
Registering a 100% foreign-owned company in Vietnam is possible. However, foreign investment is subject to regulatory limitations applied on each specific business sector.
In most cases, investors shall implement the following steps to establish a company:
Step 1: Obtaining an Investment Registration Certificate, abbreviated IRC (if any non-Vietnamese investors).
Step 2: Obtaining an Enterprise Registration Certificate, abbreviated ERC or BRC for Business Registration Certificate.
The company is established but the following steps are required for regulatory compliance:
Step 3: Post establishment procedures.
Step 4: Obtaining sub-licenses (if any).
IRC stands for Investment Registration Certificate which shall be obtained (in most cases) when a foreign investor wants to set up a project (such as establishing a company) in Vietnam at the beginning.
ERC stands for the Enterprise Registration Certificate which every company in Vietnam must have. In other jurisdiction it is sometimes referred to as the “Incorporation Certificate” or “Company Certificate”.
Joint Stock Company (“JSC”) and Limited Liability Company (“LLC”) are the most common types of company in Vietnam since they offer the following advantages:
In general, there is no minimum capital required by law when registering a company in Vietnam. Only some conditional business sectors such as real estate trading, banking or education have specific capital requirements.
However, the capital shall be sufficient in light of the intended business sectors and scale of operation.
For non-conditional business sectors, we usually need from 6 to 8 weeks to setup a foreign-invested company and 1 week for a Vietnamese-invested one.
However, especially for foreign-owned companies, the time can be extended due to various reasons such as additional requirements from the licensing authorities.
Compliance monitoring service is a service of reviewing, warning of risks, proposing and directly performing a necessary work to ensure that the company operates in Vietnam following Vietnamese laws and all departments in the company are following internal regulation.
Compliance monitoring services are including such following tasks : reviewing the rules and regulations of the business to ensure that these documents are issued in accordance with policy of the company but still ensure compliance with the law; checking the operating procedures of each department to be matched with the general regulations of the company to ensure compliance and consistency throughout the company; construction and drafting operating procedures, regulations regarding internal matters, operated areas, each department of the company.
Yes, it is. The internal regulation of the company which is issued in the right order and corrected authority will have mandatory validity for whole levels in the company, management levels and other employees have to obey.
Internal regulations such as statutes, internal rules, and charters are such documents regulating daily activities of the company. When the company does not comply with those regulations, sanction for administrative violations will be applied as well as all decisions or transactions will be cancelled and considered of invalid.
No, it is not. In the company, the chief of each department will take their own responsibility if their departments do not comply with regulation, internal procedure and/or not obey the law.