Establishment of foreign invested company

Vietnam is rapidly emerging as an attractive destination for international investors. However, establishing a foreign-invested company in Vietnam is not merely an administrative procedure—it is a complex legal process. To assist foreign businesses in entering the Vietnamese market smoothly, APEX PARTNERS offers professional, efficient, and comprehensive legal consulting services for the establishment of foreign-invested enterprises.

What Is a Foreign-Invested Company?

According to Vietnamese law, a foreign-invested company is an enterprise established under the Law on Enterprises and the Law on Investment, with capital contributed by foreign individuals or organizations. Depending on the ownership structure, foreign-invested companies are categorized into:

  • 100% Foreign-Owned Enterprises
  • Joint Venture Enterprises between foreign investors and Vietnamese partners

The capital contribution ratio not only affects the company’s organizational structure but also determines its legal obligations and the procedures required for establishment.

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Sectors Open to Foreign Investment in Vietnam

Not all industries in Vietnam are open to foreign investors. Depending on national development policies and international commitments, Vietnamese law classifies business sectors into three main categories:

  • Prohibited Sectors: Industries in which investment is strictly banned, such as narcotics production, explosives manufacturing, human trafficking, etc.
  • Conditional Sectors: Industries requiring special permits or subject to restrictions, such as real estate, education, transportation, finance, and banking.
  • Unrestricted Sectors: Fields open to foreign investment without specific conditions, including manufacturing, processing, and information technology.

APEX PARTNERS stays up to date with the official list of sectors and provides tailored legal advice to help investors identify the most suitable industries aligned with their capacity and development strategy.

Conditions for Establishing a Foreign-Invested Company in Vietnam

Foreign investors must meet the following requirements to establish a company in Vietnam:

  • Financial Capability: Must prove the availability of legitimate capital.
  • Complete legal documentation: Business registration certificate from the home country (for organizations), and a valid passport (for individuals).
  • Compliance with capital ownership ratios as prescribed by law.
  • The investment project must align with the socio-economic development planning.
  • Proof of a valid project location with lawful land use rights.

Required Documents for Company Registration

For Individual Investors:

  • Valid passport
  • Proof of financial capacity (e.g., bank statements or account balance certificate)
  • Office lease agreement
  • Investment project proposal

For Corporate Investors:

  • Business registration certificate of the parent company
  • Charter (Articles of Association) of the parent company
  • Latest audited financial statement
  • Power of attorney for the legal representative in Vietnam
  • Other documents similar to those required for individual investors

APEX PARTNERS will assist in verifying, standardizing, and completing all required documents in accordance with Vietnamese legal regulations.

Timeline and Cost of Company Formation

Estimated Processing Time: Typically 20–30 working days, depending on the business sector and locality.

Cost: Varies based on company type, business sector, office location, and document complexity. APEX PARTNERS is committed to transparent pricing and offers all-inclusive service packages.

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Benefits of Using Services at APEX PARTNERS

  • Comprehensive and In-Depth Legal Consulting: We assist from the investment planning stage to designing business strategies aligned with Vietnam’s legal environment.
  • Maximum Time Efficiency: We help shorten processing time and minimize errors during the application process.
  • Legally Compliant and Accurate Documentation: Every document is thoroughly reviewed to increase the chance of approval on the first submission.
  • Post-Incorporation Support: Including trademark registration, labor contracts, adjustments to investment licenses, and more.

Important Notes When Establishing a Foreign-Invested Company

  • Carefully study Vietnam’s industry-specific policies and WTO commitments.
  • Be aware of conditional business sectors that require additional sub-licenses.
  • Choose a business structure that aligns with your long-term development goals.
  • Ensure the registered office address is legally valid with proper documentation of usage rights.
  • Fully comply with periodic reporting obligations related to investment activities.

Conclusion

Establishing a foreign-invested company in Vietnam is a strategic move, but it requires caution and deep legal understanding. APEX PARTNERS is proud to be a leading consulting firm in this field. With a team of experienced lawyers and legal experts, we help international clients enter the Vietnamese market smoothly, safely, and efficiently.

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