Apart from the limited liability company, which is the most common type of company in Vietnam, there are also specific business forms specifically designed for foreign investments which benefit from certain incentives.
For those seeking a faster alternative to incorporating, there is the possibility of buying a shelf or ready-made company. This is a business form “sitting on a shelf” without any previous activity. That’s right. If you seek the fastest and most efficient way to start a business, then a shelf company could be your best option.
You are welcome to get in touch with our company formation experts in Vietnam. They can help you buy a shelf company in Vietnam. You can also get assistance from our consultants if you want to open a branch in this country. Our company incorporation experts will guide you throughout the whole procedure of setting up a branch office in this country as well as its obligation.
| Quick Facts | |
|---|---|
| Legal entities available for shelf company |
Limited liability company (fully-foreign owned company advised) |
|
Time required for purchasing the company |
A few days |
|
Types of features it includes (corporate bank account, VAT number, etc) |
VAT number, statutory documents, legal address, trading name |
| The advantages of a shelf company |
Simple and fast purchase procedure, increased credibility on the market |
| Appointing new directors (yes/no) | YES, local or foreign director (who needs to obtain a work permit) can be appointed |
| Capital increase allowed (yes/no) |
YES |
| Certificate of no commercial activities (yes/no) |
Investment certificate required for foreign buyers |
| Modify the objects of activity (yes/no) | YES, subject to specific licensing requirements |
| Participants in the purchase procedure | Buyer or legal representative and seller |
| The cost of buying a shelf company | Depends on the age and type of entity selected |
Advantages of company formation in Vietnam
Opening a shelf company can be a good strategy for investors who wish to start trading immediately. Our team describes the shelf company below.
A shelf or ready-made company is a corporate structure legally incorporated that is, as previously stated, metaphorically “sitting on a shelf.”
This means it is not undergoing any activity, nor has assets or liabilities.
A ready-made company in Vietnam has been registered in a standard, generic manner so that a potential buyer can tailor it to the needs of its business.
This means that the investor does not have to go through the whole company incorporation process in Vietnam.
If you choose to work with the right experienced incorporation agents, like ours, it also means the company has a perfect-clean history.
This is possible through our thorough background check of the shelf company, before any final decision for purchase. It will assure that the shelf company is a safe purchase.
Therefore, from “sitting on a shelf” without any previous activity, this company will offer you the quickest way to enter the Vietnam market.
In addition, our Vietnam company formation consultants can provide more information on the shelf companies available for sale in this country.
If you are planning to buy a shelf company in Vietnam in 2023, you are welcome to interact with our skilled company incorporation consultants.
Steps for buying a shelf company in Vietnam
Before acquiring a shelf company in Vietnam, a foreign enterpriser must first conduct a thorough search in order to find the best option.
The search should be based on the entrepreneur’s requirements and could depend on the age of the company, whether it has or not a VAT number, and the activities the business person wants to carry out through it.
Our company registration specialists in Vietnam can help investors choose the right type of shelf company based on these criteria.
Following the selection of the Vietnam ready-made company, the sale-purchase agreement must be drafted and signed. The enterpriser will then bring all the changes he or she wants to the recently purchased shelf company.
These changes can imply:
- alteration of shareholders’ names;
- changes in the company’s management;
- changing the company’s business address.
One should not forget to announce these changes to the Business Register in Vietnam.
The needed steps are summarized below:
- Defining the goals and first actions;
- Search based on your needs;
- Choosing your best option from our list; our Vietnam company formation consultants can offer more information on the shelf companies available for sale in this country;
- Change its particulars to your needs.
Your company will now have an open door to the Vietnamese market.
You will be ready to start your business.
You are also welcome to communicate with our advisors if you need a virtual office for your business in addition to setting up a business in Vietnam.
Our specialists will explain the various virtual office packages and help you choose the one that best meets your company’s needs.
Documents required for a shelf company in Vietnam
Like any other company, there is also a list of documents required for owning a shelf company.
These documents should be properly apostilled. It is recommended to avail the services of our company incorporation specialists in Vietnam because any inconsistency while complying with the regulations might cause unnecessary delays.
Our incorporation experts can help you comply well with these requirements. You can also find below a general guide to the documents required for owning a shelf company in Vietnam:
- List of shareholders;
- List of directors;
- Detail of share certificates;
- Copy of the ‘Declaration of Trust’ signed by the nominee shareholder and the ultimate beneficial owner (if applicable);
- Good Standing Certificate (this is only valid if the firm has been in operation for at least 12 months);
- For each director, beneficial owner, and shareholder, a notarized copy of their valid passport, a utility bill, and a bank reference letter are required.
You can request a letter of recommendation from the bank where you have an account (dated not over 3 months). Furthermore, note that there is no minimum share capital requirement for this company with exception for certain business operations.
The reference letter should include the date of the relation, the account number, and if possible, the current amount, as well as the phrase “account operation is satisfactory. For further details regarding how to get notarized documents in Vietnam, you can interact with our company incorporation consultants. In addition to this, if you are looking for the services of an accounting firm in Vietnam, please get in touch with our accountants. Accounting takes care of changes to the assets, procedures, business and production outcomes. It is a process of gathering, handling, analyzing, and reporting information. Our accountants offer practical assistance and guidance to businesses as they make socioeconomic decisions and assess the efficiency of their operational activities.
Why purchase a ready-made company in Vietnam?
Buying a ready-made company is much simpler than setting up a new business in Vietnam. Purchasing a shelf company can also reduce the risk associated with starting a new business, as you inherit an established legal entity that has already gone through the registration process. Apart from this, there are other reasons why one can buy a shelf company rather than register a new one:
- the shelf company already has a tax and VAT number; in Vietnam, the standard CIT rate applied to businesses is 20%;
- the shelf company has credibility which is very important on the Vietnamese market;
- the shelf company can be helpful to those interested in obtaining financing.
With many business opportunities, time and speed are crucial to success. But creating businesses that hold strong through the years almost always requires quick responses to fast-changing markets.
Every second spent counts. And all these rules, of course, apply in the Asian and Vietnamese markets.
As you can imagine, setting up a company in Vietnam involves time, lawyers, meetings, and processes.
However, investors do not have time for it. What they do have, is the need and urge to start their business right away.
That’s when a shelf company in Vietnam is the way to go. Here are some other reasons that will catch your attention:
1. Credibility and Confidence
Setting up a company in Vietnam with a shelf company will help you to enter the market with a strong foot. As any businessman can understand, a company that holds credible features is a company with advantages in the market, especially when credibility is essential in Vietnam’s market. A company that has been incorporated for several years attracts business partners and consumers more efficiently compared to a new company in Vietnam.
However, shelf companies in Vietnam offer longevity that will boost possible investors’ and consumers’ confidence in your business. Moreover, it provides the opportunity to hold a reputable position in the market and probably have trustworthy relationships. All this results in more interested investors and more consumers at your front desk.
2. Open financial market
Having an aged company has even more advantages, as it will also make your business more likely to enter the financial market in Vietnam. If you decide to start your company formation in Vietnam from zero, you will have to pass through the waiting period for a bank account to be arranged. By comparison, when doing business through a shelf company, a business is in a stronger position to access a loan, to open a bank account, and even obtain financing from banks and possible investors.
In some cases, the chosen shelf company in Vietnam can already have a bank account.
3. Speed
As previously mentioned, business opportunities and markets don’t wait. With a quick process, you can have immediate contracts and sales. The company will already have a tax and VAT number. Shelf companies in Vietnam will only require the transfer of title and ownership, which can be very quick. Leaving you with a clear path without delays and transfer time from setting up a new company in Vietnam.
If you need more information on why you should buy a shelf company in Vietnam, our experts are at your disposal.
There are many regulations that you are required to follow for setting up a business in Vietnam. If you keep complying with these rules and regulations you can run your company in Vietnam without facing any issues.
ur team of expert advisors and business incorporation professionals in Vietnam provides a range of compliance services to ensure that your company is properly formed and follows all local rules and regulations.
Online shelf company incorporation provided by our experts
Our experts can provide you with details about online company incorporation.
If you want to purchase a shelf company in Vietnam, you can choose from a list of shelf companies, purchase the one that best meets your needs, and begin doing business in Vietnam as soon as the paperwork is approved.
Our company incorporation consultants can perform the whole online incorporation task on your behalf and then transfer the management control to you by issuing you a power of attorney as soon as a shelf company in Vietnam is purchased. You will then be an official legal representative of the firm.
Besides buying a shelf company in Vietnam, you can also register any other company type online.
Incorporating a company in Vietnam provides various important services as well as protection to stakeholders. As a result, incorporating a company before starting a business or investing is beneficial.
Because there are many different types of companies in Vietnam, each with its own set of benefits, it is advisable to consult with our team of incorporation experts who can help you in this matter.
If you already know the company type you want, you can use our online incorporation tool for a fast company registration procedure.
Vietnam facts and figures
If you want to purchase a shelf company in Vietnam, please read the figures provided below. This information might help you before you decide to buy a read-made company in Vietnam:
- Vietnam averaged over 20,000 new companies registered between 2015 and 2018.
- Vietnam is the 17th freest economy in Asia, according to the Index of Economic Freedom.
- Vietnam’s economy is projected to grow by 6.7% in 2021;
- In 2022, Vietnam’s GDP increased by 8.02%.
Keeping in view the above statistics, it can be evaluated that Vietnam is steadily moving towards a stable economy. As a foreigner, if you are planning to incorporate a company in Vietnam in 2023, it is advised to do so under the supervision of our experienced company formation specialists. If you wish to buy a shelf company in Vietnam, contact our business formation experts. Our specialists can give you a comprehensive business plan for buying a ready-made company in Vietnam.
If you wish to open a company in Vietnam, rather than buying a shelf company, you may also speak with one of our company formation advisors. Our professionals will provide you with practical support throughout the incorporation procedure.