The minimum cost to set up a company in Vietnam starts at USD 3,540 for the first year of operation. It’s important to note that the setup costs can vary greatly depending on various factors, such as your industry, business location, business size, team size, and more.

Next, Nova Law will break down these minimum costs so you can plan your own expenses. The currency used in this Article is USD.

Business Premise Rent

To establish a company in Vietnam, a local business address is a mandatory legal requirement.

If your business does not require a physical location during the initial stages, you may opt for a virtual address for registration purposes. This address can be updated to a physical location later on if needed. The cost of a virtual business address package typically starts at $50 per month or $600 per year.

If your business needs to operate from a physical location (e.g. office, retail shop, showroom, restaurant, factory, or warehouse), you will need to find an appropriate location and sign a leasing contract before proceeding with your company registration.

The table below lists the leasing price of commercial properties as of the Q3, 2022 in major big cities of Vietnam:

Learn more: Industrial Properties in Vietnam: Overview and Updated Pricing

Company Registration Fee

Once you have secured a business address and prepared all the required documents, you can initiate the company registration process. The associated setup costs include:

Government Fee: The official government fee for registering a company in Vietnam is VND 100,000 (approximately USD 4.30). This fee is payable to the local business registration office during the online registration process. It is a one-time fee.

Lawyer fee: As registering a foreign-owned company in Vietnam is a complicated work, foreign investors often engage a law firm to assist with their registration. From the early stage, the legal team helps you choose the appropriate business structure and advise on market entry legal conditions. They then manage all paperwork and licensing required to incorporate your company. After your company is established, the legal team remains valuable for ensuring legal compliance, advising on legal protections during transactions, and identifying potential legal risks. Law firms typically offer incorporation packages that include legal consulting, company certificates (Investment Registration Certificate and Enterprise Registration Certificate), and company stamp – essential components for officially establishing a foreign-owned company in Vietnam.

Unlike in some other countries, in Vietnam, investors are not required to pay compulsory costs for local nominee directors, corporate secretaries, or annual government fees to maintain their registration.

Learn more: Company Setup Package, Starting From $1,200

Sub-licenses Registration Fee (if required)

Certain conditional business sectors in Vietnam require companies to obtain additional approvals or sub-licenses before commencing operations. For instance, an FDI company wishing to engage in retail must apply for a Retail Business License; a restaurant must secure a Certificate of Food Safety and Hygiene; while importing cosmetic products requires a Notification of Cosmetic Products. The costs associated with obtaining these sub-licenses vary depending on the type and complexity of the license required.

Initial Set-Up Fee

Once the company is officially established in Vietnam, it must also comply with post-establishment requirements, which, of course, incur costs:

Bank Account Fee

Commercial banks in Vietnam usually don’t charge a fee for opening bank accounts, but they require clients to maintain a minimum deposit, which varies depending on the bank. Additional charges for banking services will also apply.

Accounting and Social Insurance Initial Setup Fee

Each company in Vietnam is required to purchase a digital signature device for electronically signing administrative online transactions. The price of digital signature devices varies depending on the vendor and the duration of use. Typically, a digital signature for a 3-year period costs around $100.

Additionally, the company may need to acquire accounting software, social insurance software, and VAT invoices if it has employees or needs to issue VAT invoices to customers.

On-Going Compliance Fee

Maintaining compliance with Vietnamese regulations involves several recurring costs annually, particularly in the areas of tax reporting and auditing.

Tax and Accounting Fee

All Vietnamese companies are required to declare and file tax reports on a monthly or quarterly basis and to finalize the corporate income tax on end-of-year report. For companies with a high accounting workload, such as those in manufacturing or retail, an internal accounting team may be necessary. However, if the workload is low to medium, outsourcing your accounting tasks can provide access to high-level expertise at a more affordable cost. At Nova Law, accounting fees typically start at $70 per month, though fees for bookkeeping and tax report filing services may vary depending on the company’s size and the quality of service required..

Audit Fee

For foreign-owned companies, the annual financial statement must be prepared by the accounting team and audited by an independent auditing firm in Vietnam. Audit fees generally start at $800 per fiscal year.

Visa and Work Permit Fee (optional)

If foreign investors of the company wish to stay long-term in Vietnam to manage the business, they may apply for a Temporary Resident Card (TRC) with a validity of up to 10 years.

Unless exempt, foreigners working in Vietnam must apply for a work permit. The duration of a work permit is 2 years and can be extended. After that, a working visa or a working TRC with a maximum duration of 2 years will be granted accordingly.

In practice, the process and requirements for applying for visas and work permits are complex and challenging without the support of local service agencies. The average service fee starts at $400 for each application.

Conclusion

Setting up and maintaining a company in Vietnam involves necessary fees, which can vary based on your business size, industry, and location. To accurately assess the total cost of registering your business, it’s essential to consult with an expert. Choosing a reliable and professional law office is an important decision when you do business in Vietnam. Nova Law can be your great choice! We have strong legal knowledge, as well as extensive experience with company establishment in Vietnam. We can handle nearly every legal challenge your business is likely to encounter. 

Please contact Nova Law if you need more detailed information or need to use corporate-related services. We are happy to be of service!