Over the last years, the Vietnamese Government has issued many regulations related to the real estate sector to make it more attractive to foreign individuals and organizations wishing to invest in Vietnam. However, the quick development of the real estate market together with the inconsistencies when applying the aforementioned regulations by the competent authorities at every level, have unintentionally created many barriers for foreign investors in developing and managing real estate projects in Vietnam. If appropriate regulations were applied, investors would be more confident in the legal framework and be able to maximize their profits.
With more than 10 years of operations in the field of real estate, we have had the opportunity to build extensive relationships with competent authorities in Vietnam. It allows us to help you understand the local real estate legal framework and market, as well as the pros and cons of each location to assess your investment potential and take advantage of business opportunities. We are ready to work along your side to set up new projects, buy and sell existing projects, such as factories, restaurants, hotels, offices, schools or even apartments.
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.