Vietnam is one of the most performant economies in Asia at the moment, among the reasons for such results is the financial industry which attracts a great number of local, but most of all, foreign investors. Those who want to open companies in the financial sector in Vietnam have various branches they can choose from.
Below, our company formation agents in Vietnam explain the requirements for starting a financial company in this country.
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How to register a financial business in Vietnam
Investors who want to open financial companies in Vietnam must comply with several requirements. Among these are the share capital requirements which depend on the type of company established:
- in the case of banking institutions, these will be imposed by the Vietnam National Bank on a case-to-case basis;
- in the case of insurance companies, it will depend on the type of services offered, however, the minimum amount of money starts at 300,000 billion VND.
The Vietnam National Bank is the main institution issuing the license for any type of financial company. It should be noted that a few years back, the National Bank liberalized the market and foreign investors were allowed to fully own financial companies in Vietnam.
Our company formation specialists in Vietnam are at your disposal if you want to open a financial business.
Requirements to obtain a financial license in Vietnam
Here are some of the conditions for obtaining various types of Vietnamese financial licenses:
- they can have both natural persons and companies as shareholders, however, in the case of individuals, Vietnamese citizens only are accepted;
- if the shareholders are companies, they must demonstrate they have been profitable in the last 3 years before applying for a financial license;
- for Vietnamese companies, the minimum capital is VND 500 million;
- the value of the total assets must be at least VND 1 million in the past 3 years;
- in the case of commercial banks, the minimum value of their assets is set at VND 100,000 billion;
- for credit institutions that will not operate as banks, the minimum capital is VND 500 billion.
Also, banking institutions must be registered as joint stock companies. Private companies are accepted in the case of non-banking enterprises.
You can rely on our company registration agents in Vietnam for support in setting up both types of companies. In addition, our accountants in Vietnam will help you comply with the accounting requirements for each of them.
Types of financial companies in Vietnam
There are several types of companies one can establish in the financial industry in Vietnam. Among these, the most prolific ones are:
- commercial and non-commercial banks;
- insurance and reinsurance companies;
- investment companies;
- brokerage companies;
- financial advisory companies;
- fintech companies.
Fintech companies can be set up by foreign enterprises without any minimum share capital if their main object of activity is a non-financial one. These types of companies can engage in activities such as the creation of cryptocurrency.
A particularity of Vietnam is that the country has two main stock exchanges, which are also among the largest in the Southeast Asian region. These are the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX). Our Vietnam company registration consultants can offer information on the legislation related to starting a financial company here.
Besides guiding you about setting up a financial company in Vietnam, you can also get in touch with our accountants for their services. Accountants assist clients with their businesses by identifying issues that limit profitability and growth, as well as taxes and records. Computer system consulting, business assessments, and retirement planning are among the services that our CPA in Vietnam offers.
Activities that can be completed with a financial license in Vietnam
Based on the type of companies listed above, it should be noted that some of them can offer various services. They depend on the type of financial license to apply for in Vietnam.
Banks, for example, can engage in the following types of operations:
- taking deposits from natural persons and companies;
- creating savings accounts and deposits;
- issuing deposit certificates and financial instruments;
- offering credits, as well as extending them, at the request of clients;
- providing other money-lending forms, such as factoring, financial leasing, and bank guarantees;
- payment services;
- debt financing;
- currency exchange services;
- cash management;
- financial advisory services;
- asset management.
Depending on the type of bank, there are also other activities that can be completed with a Vietnamese financial license. For example, commercial banks can also offer custodian services to investment funds and investment fund management companies.
Please note that in Vietnam there are also non-financial institutions that can offer credits.
Insurance companies can also offer other services than the usual ones, among which we mention the following:
- reinsurance solutions;
- fund and capital management services;
- ancillary solutions.
For full information on the creation of financial companies, please contact our Vietnam company registration specialists.