Opening a recruitment agency in Vietnam involves carefully following some legal steps and obtaining the necessary documents imposed by the authorities in this country. The guide provided below by our company formation specialists in Vietnam can help you have a better understanding of this process.
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First steps to set up a recruitment company in Vietnam
Recruitment companies in Vietnam operate activities in this country under the regulations of the Employment Law from 2013 and through the Decree number 23 from 2021, as Vietnamese authorities specify. In this matter, there are some procedures to follow in order to legally operate this kind of business in Vietnam. Find below the essential steps regarding opening a recruitment company in Vietnam offered by our company formation agents.
There is a two-step procedure to consider in order to open a recruitment company in Vietnam:
- The primary step is to obtain a business code required in accordance with Vietnam Standards of Industrial Classifications (VSIC). The business code representing recruitment companies in Vietnam is 7810. This code must be incorporated in the company’s business license.
- As a second step, obtaining a recruitment license in Vietnam is mandatory to comply with the authority’s regulations. This license is named Recruitment Service Operation License. The document can be obtained after the first step mentioned above is completed.
If you need support regarding the procedures to follow in order to obtain the required license for your recruitment company in Vietnam, our agents specialized in company formation in Vietnam can offer efficient assistance.
Register a recruitment company in Vietnam
If you are looking to obtain a recruitment license in Vietnam, the registration of the company is mandatory in order to legally operate in this country. Find below the specific course of action to follow:
- Obtain an IRC: applicable for investment only, the Investment Registration Certificate is an official document which specifies the company’s objectives related to the recruitment field.
- Obtain an ERC: the Enterprise Registration Certificate is required by Vietnamese authorities for all projects in this country that search for establishing a new entity in order to open a company in Vietnam.
- Apply to obtain a sublicense: this document suggests the conditions that need to be met in order to operate activities in the recruitment area.
- Make a public announcement about the operational start of the company. It can be done through mass-media, official website, public papers, etc.
How to obtain a recruitment business code for your company in Vietnam
The procedures to obtain a business code for your recruitment company in Vietnam are easy to follow as the approval of the code is done at a provincial level by the local authorities and they usually take about 3 to 4 weeks to complete this step.
Many businesses choose to set up a recruitment company in Vietnam with specialized support in order to save time and optimize their budgets. Find assistance from our company formation agents in Vietnam in this matter.
Conditions to obtain a recruitment license in Vietnam
There are some requirements to meet for the purpose of obtaining a recruitment license in Vietnam. Take into account the following demands in order to apply for the license:
- Presence of an office or branch owned by the company which operates employment service activities under a contract of 36 months or more from the date when the application was registered to the Department of Labor, Invalids and Social Affairs.
- A deposit of 300,000,000 million VDN (approximatively 12,000 US dollars) must be made in the name of the company at a Vietnamese commercial or foreign bank.
Regarding the legal representative of the company, there are some conditions to follow in this matter too:
- The person has to work as a manager in the company in order to comply with the regulations of the Enterprises Law.
- He/she must own a bachelor’s or higher degree. In the situation when this is not possible, the individual needs to show proof of working as a professional/manager in employment or labor supply services for a period of at least 24 months. This period must be completed before the submission of the application for the recruitment license in Vietnam.
- He/she must not be included in one or more of the following cases: being held in temporary detention, currently being examined for penal cases, serving a prison sentence, being in the situation to be banned from the court or fleeing illegally from the place of residence.
Consider finding support from our company formation agents inorder to make the procedure of obtaining a recruitment license more efficient. Furthermore, company incorporation in Vietnam can become easier as we offer various services in this matter. If you are looking for assistance on financial aspects and payment requirements, our accountants in Vietnam can provide relevant information and help.
Requirements to follow after obtaining the recruitment business license in Vietnam
After your company obtains the recruitment business license, it is important to take into account that the Vietnamese authorities are requiring to make a public announcement of your operation in order to open a recruitment company in Vietnam. In this way, from the date that the business license has been issued, the company must publicly announce the following:
- information about the license;
- location of the company;
- field of operation;
- name and identification details of the legal representative who activates in employment services for the company;
- phone number;
- e-mail.
This public announcement must be made in a maximum period of 20 working days and it can be done through the company’s official website or public newspapers and television programs. After the expiration of the license, it can be renewed multiple times and every extension lasts for 60 months.
Recruitment statistics in Vietnam
As the job market in Vietnam was highly developed in the last years through the increased company formation, statistical data shows some impressive numbers regarding the workforce in Vietnam over the year 2023:
- The number of employed people in Vietnam grew to 52.4 million. This shows an increase of 665,500 people compared to the previous year.
- It is estimated that 27% of workers had an official degree or training certificate in Vietnam in 2023. This also represents an improvement over the previous year with 0.6%.
- The average monthly income in Vietnam was 7.1 million VDN (approximatively US$291). In this case, it was an increase of 6.9% compared to 2022.
For more information and support about opening a recruitment company in Vietnam, do not hesitate to contact us.