Starting and running a business in vietnam: tips for you
The Vietnamese government is implementing measures to attract investment with its Law on Foreign Investment in Vietnam and is implementing reforms, the main features of which are an openness to foreigners and private operators. Incentives continue to be created, facilitating foreign investment (tax exemptions etc.).
Many foreign investors are interested in starting a business in Vietnam. However, to be able to start and run a business successfully in Vietnam, there are tips and tricks to follow:
Choosing the right entity and registering your company is the first step you have to take when starting a business in Vietnam.
Several legal entities are available in Vietnam: limited liability company (LLC), joint-stock company (JSC), branch, representative office, and shelf company.
Once your company is registered, you must then comply with tax regulations.
Vietnam’s tax laws have been going through constant changes and increased complexity, so it could pose some challenges to foreign business owners. Make sure to seek professional assistance to ensure full tax compliance.
When your company registration and tax compliance have been taken care of, you will have to look into the employment legislation and compliance.
– If you want to hire foreigners, your foreign workers must apply for a work permit and residency visa (or business visa) to stay and work legally in Vietnam.
– Foreigners are required to obtain a work permit if they are going to work in Vietnam for more than 3 months. A work permit is valid for 12 months and it is renewable. As for foreigners working for less than 3 months in Vietnam, they just need a business visa but they will need to have a sponsorship letter from a local company.
– It is not the same when it comes to hiring full-time employees and independent contractors. In Vietnam, you don’t have to pay for an independent contractor’s medical insurance, social security, and unemployment tax.
For you to achieve success when starting a business in Vietnam, you must have the ability to understand and catch on the Vietnamese business culture. Vietnamese society is geared towards collectivism, with their family and community having priority over their business and individual needs.
Therefore, you never want to lose any business opportunities in Vietnam due to the lack of business customs.
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