The Company Law provides for several types of companies which can be established in Vietnam. Among these, sole proprietorships and limited liability companies are the most employed ones. If the sole trader is available for small one-man businesses, the limited liability company (LLC) can accommodate small, medium and large businesses in Vietnam.
There is also the possibility of opening a sole proprietorship and then changing it into a limited liability company, provided that a few steps are completed. Below, our company formation agents in Vietnam explain how to change a sole trader into a limited liability company.
In order to understand how a sole proprietorship can be converted into an LLC in Vietnam, the following aspects about both types of structures must be understood:
Our Vietnam company formation consultants can offer more information on these two types of companies. They can also help you register any of them. Besides helping you with changing a sole trader into a limited liability company in Vietnam, you can get in touch with our lawyers if you need any additional services. For instance, the services of the accountants at our accounting firm in Vietnam are available if you need assistance with accounting for your business. To prevent issues, foreigners who have established businesses in Vietnam must get advice from a local CPA.
Another important difference between the sole trader and the LLC is that the sole proprietorship is not considered a separate legal entity from the owner, while the LLC is. This is why changing a Vietnam sole trader into an LLC will imply de-registering the first structure and registering the LLC.
Turning the sole trader into a Vietnam LLC will imply de-registering it with the Trade Register by filing a petition and then registering the LLC by completing the usual company registration phases of a company. The LLC can keep the trade name and address of the sole proprietorship.
Our company registration advisors in Vietnam can help you change a sole trader into an LLC, so please contact us. They can also help you open a new company in Vietnam under any type of legal entity available in this country.