With a young population and a dynamic workforce, Vietnam is one of the most prolific economies in Southeast Asia. Even so, the need to have talented personnel and well-educated employees have transformed education into a very important sector for the government, which is why starting an education business in Vietnam can be a great opportunity for foreign investors coming here.
Activating as an education service provider in Vietnam implies registering a company under the provisions of the Company Law followed by obtaining specific licenses for starting the activities.
Below, our company formation agents in Vietnam explain how to set up an education business in this country. You can rely on us if you need assistance in registering the company with the local authorities.
Foreign investors registering education businesses in Vietnam
It must be noted that as a foreign investor, an overseas businessperson must comply with specific regulations when it comes to company registration in Vietnam, no matter the industry to operate in.
When seeking to activate as a Vietnamese education service provider, a foreign investor can choose one of the following types of structures:
- a limited liability company which can have one or more shareholders and does not require a minimum share capital;
- a partnership which requires at least two members, and which is suitable for foreign entrepreneurs seeking to have a local partner;
- a wholly-foreign owned company which is a form of foreign direct investment in Vietnam;
- an education facility can also take the form of an investment project in Vietnam under certain conditions;
- special forms of investments such as the business cooperation contract can be employed in Vietnam.
Foreign companies can also activate as education service providers if they open subsidiaries or branch offices in Vietnam.
Our Vietnam company formation specialists can help you register any of the business forms above if you want to set up an education business in this country. Besides helping you with the incorporation of a business, our lawyers can also offer you services if you need accounting services. You are welcome to get in touch with our accountants in Vietnam, they can offer you services like; payroll, bookkeeping, tax filing, and many others. With their services, you will be able to prevent various legal issues and inconsistencies.
Types of education facilities in Vietnam
Education is one of the most developed industries in Vietnam and the types of facilities which can offer such services are plenty. Those who want to open education businesses in Vietnam can choose among the following types of facilities:
- pre-school education facilities, such as kindergartens can be successfully set up in Vietnam;
- compulsory educational facilities can also be created by foreign investors coming to this country;
- vocational training facilities can be registered by foreign entrepreneurs coming to Vietnam;
- universities are among the most important business forms acknowledged by the Vietnam government;
- other types of educational facilities, such as language schools and training facilities are also recognized as education service providers in Vietnam.
It is important to notice that for offering some of the education forms mentioned above, special licenses will be required. Our company formation advisors in Vietnam can offer more information on the licensing requirements when activating as an education service provider in this country.
We are also at your service with guidance in opening a bank account in Vietnam for your education facility.
Licenses for education service providers in Vietnam
No matter if the business owner is a local or foreign investor, the education license requirement applies to all. This license is issued by the Department of Education and Training after the Vietnam company registration procedure has been completed.
Among all the types of education facilities mentioned above, pre-school, compulsory school and university facilities require an education license in Vietnam.
Among the vocational facilities, only those offering tutoring, computer training, consultancy and lifeguard and survival training need an education license.
If you want to open a company in Vietnam in this sector, it can take the form of a limited liability company.
Incentives for the education industry in Vietnam
Activating as an education service provider in Vietnam comes with several benefits, among which certain incentives granted by the government. Among these, it is worth noting the full foreign ownership when opening universities and vocational schools.
The minimum share capital for opening a university is approximately 13,2 million USD, while for a vocational school, the minimum share capital is approximately 4,4 million USD. Only 70% of the amount must be paid if the investor will rent the property in which the activities will be completed.
If you decide to open a company in Vietnam with the intention of activating an education service provider, please feel free to contact our local consultants. They can help with the incorporation of the company with the Vietnamese Trade Register and explain the requirements to fulfill when applying for an education license.