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COMPANY ESTABLISHMENT SERVICE, BUSINESS ESTABLISHMENT
Establishing a company requires a deep understanding of the legal process, administrative procedures and related requirements. To help entrepreneurs and startups approach and complete this process, business establishment services have become a popular choice today. In this article, Siglaw will provide customers with some necessary information about the company/business establishment services that we have been providing:
COMPANY ESTABLISHMENT AND BUSINESS ESTABLISHMENT SERVICES OF SIGLAW LAW FIRM
| ✅Incentives | ⭐Enthusiastic, effective support and meeting all customer needs in the process of consulting on company establishment services in Vietnam and business establishment services abroad |
| ✅Experience | ⭐Over 10 years of experience, regularly updating and grasping the latest legal situation, helping customers make accurate and quick decisions. |
| ✅Team Siglaw | ⭐Highly qualified lawyers and legal experts solve legal issues related to company and business establishment |
| ✅Cost | ⭐No additional costs, reasonable and competitive prices. To know the exact cost of business establishment services in Hanoi and Ho Chi Minh City, please directly contact Siglaw Law Firm’s hotline 0961 366 238 directly |
SIGLAW’S COMPANY ESTABLISHMENT PROCESS
Step 1: Meet and discuss with customers
Customers who want to establish a business, please contact Siglaw via hotline or email, we will discuss and advise customers quickly via hotline, if necessary, the two parties can meet to discuss more clearly.
In this meeting, customers will have the opportunity to present their requirements and goals in establishing a company. Siglaw will listen and understand the requirements and specific characteristics of the customer, then we will discuss in detail about the company establishment service at Siglaw for the customer and the two parties will come to an agreement.
Step 2: Siglaw receives information and requests the client to provide some documents to prepare the company establishment dossier
Through direct communication or through other forms of communication, the client will exchange and provide necessary information to Siglaw. This information includes, but is not limited to, details about the type of company to be established, company name, registered address, business lines, charter capital structure and information about the company’s founding members.
Siglaw will guide the client on the specific documents to prepare and request additional documents if necessary. The goal of this stage is to collect and confirm the necessary information to prepare a complete and accurate dossier as we have stated in the company establishment dossier section.
Providing complete and accurate information and documents in this step will help Siglaw prepare the company establishment dossier effectively and quickly.
Step 3: Submit the prepared company establishment documents and pay the business information disclosure fee
Siglaw Law Firm will submit the documents signed by the customer online via the National Electronic Information Portal on Business Registration and other side procedures.
Step 4: Receive results
After about 03 working days from the date of valid documents. The Company will register the Certificate for the customer by post, so the time for the customer to receive the Certificate will be a little slower.
DOCUMENTS REQUIRED TO ESTABLISH A BUSINESS
When establishing a new company, depending on the type of company, customers will have to prepare different documents. However, Siglaw will provide you with some common documents when establishing a company as follows:
General documents to prepare
- Application form for enterprise registration.(For joint stock companies, form I-4 is used, for single-member LLCs, form I-2 is used, for multi-member LLC, form I-3 is used, for partnerships, form I-5 is used, for sole proprietorship , form I-1 is used)
- The company’s charter (Except sole proprietorship)
- Legal documents of the legal representative
- Investment registration certificate if the enterprise is founded by a foreign investor or foreign-invested business entity in accordance with the Law on Investment and its guiding documents. (Except sole proprietorship)
- Some legal documents certifying valid identity (note: if the owner/shareholder is a foreign organization, the copy of the organization’s legal documents must be consularized)
SEPARATE DOCUMENTS FOR EACH TYPE OF ENTERPRISE
Establishment of a joint stock company
- List of founding shareholders and list of shareholders form I-7 who are foreign investors according to form I-8
- Copies of legal documents of individuals for the legal representative of the enterprise;
- List of people holding the position of legal representative of the company according to form I-10
Establishment of a single-member LLC
- Just need to prepare the same as the general documents
Establishment of a multi-member LLC
- List of people holding the position of legal representative of the company according to form I-10
- List of members for a limited liability company with two or more members according to form I-6
Establishment of a partnership
- List of members of a partnership according to form I-9
Establishment of a sole proprietorship
- Just need to prepare the same as the general documents
PROCEDURES TO BE DONE AFTER ESTABLISHING A COMPANY
Customers can do this procedure themselves or assign Siglaw to do it, including:
OPEN A CORPORATE ACCOUNT
- Choosing a bank: First, you need to choose a suitable bank to open a corporate account. There are many factors to consider, including banking services, fees and conditions, transaction limits, technology utilities, etc. You should research and compare banks before making a decision.
- Prepare documents including: Application for opening an account according to the form of the Bank where the business wants to register to open an account; Notarized copies of legal documents of the account holder and chief accountant; Decision to appoint chief accountant; Notarized copy of business registration certificate.
- Fill out the application form with complete and accurate information that matches the company’s legal documents.
- After approval, you will need to carry out the final procedures to activate the corporate account. Typically, you will need to deposit some funds to initialize the account balance.
Carving company seals & hanging company signs
Currently, there are many addresses that accept seal carving. The usual time for carving a seal is about 1 day.
Many companies think that hanging advertising signs is optional, however, in fact, Law on Advertising has specific regulations on hanging signs as follows:
Article 34. Signboards of organizations and individuals doing business and production
- The signboard must include the following contents:
- a) The name of the direct line agency (if any);
- b) The name of the production facility or the business establishment consistent with the Certificate of business registration;
- c) The address and phone number.
The text on the signboard must comply with Article 18 of this Law.
The signboard sizes are specified as follows:
- a) For horizontal signboards, the maximum height is 02 meters (m), the length must not exceed the width of the house front;
- b) For vertical signboards, the maximum width is 01 meter (m), the maximum height is 04 meters (m) but must not exceed the height of the floor where the signboard is located.
The signboard must not block the emergency exit and fire fighting space, must not violate the pavement, the road or affect the public traffic.
Register to use electronic invoices
- Step 1: Customers make a declaration according to Form No. 01/DKTĐ-HĐĐT Appendix IA of Decree 123 and send it to the tax authority.
- Step 2: The General Department of Taxation’s e-Portal receives and notifies the customer
- Step 3: The tax authority sends a notice according to Form No. 01/TB-DKĐT Appendix IB of Decree 123/2020 to the Company about the results within 01 day.
Register to buy and register for an electronic signature
- Choose a supplier
- Prepare documents: Certified copy of Business Registration Certificate; Certified copy of one of the legal documents of the business representative, send the above documents to the digital signature certification unit to receive the digital signature
Then fulfill the obligations regarding tax, labor, accounting and IP
Apply for sub-licenses if doing business in conditional industries
In case the company does business in conditional industries such as pharmaceuticals, banking, insurance, securities and many other industries, the company needs to apply for related sub-licenses. This requires the company to comply with the regulations, standards and special requirements of each industry.
Why should you open a company, establish a business
Establishing a company/business is an important decision in a person’s business journey. Opening a company brings many benefits and development potential for business activities.
First of all, establishing a company helps ensure legality for business activities. The company is recognized as a legal entity, with separate rights and responsibilities compared to individual members. This helps protect personal assets and facilitates the management of the company’s finances and assets.
One of the important features of opening a company is the ability to raise capital. The company can raise capital from investors, banks and other funding sources. This helps to increase the company’s financial capacity and the ability to carry out projects and development goals. In addition, establishing a company facilitates connecting with partners and suppliers, expanding the business network and enhancing reputation in the market.
Incorporation provides a solid foundation for business development and expansion. The company has a professional management mechanism, clear division of responsibilities and decision-making power. This helps to increase operational efficiency, sustainable development and business expansion.
Top 10 provinces and cities with the largest number of established companies in Vietnam
According to statistics from around the end of 2022, in the list of provinces and cities with the highest number of established and operating enterprises, Ho Chi Minh City is at the top with 216,293. This is a remarkable number, showing the importance and attractiveness of the business market in this city. Following Ho Chi Minh City is Hanoi, with 144,808 enterprises, showing the significant position of the capital in both the business sector and the development of enterprises.
Binh Duong, Dong Nai and Da Nang are also in the top 10 with the figures of 27,406 enterprises, 19,409 enterprises and 18,885 enterprises respectively. These provinces and cities have favorable geographical locations and attractive business environments, attracting many enterprises to set up operations.
In addition, Ho Chi Minh City. Ho Chi Minh City also ranked first in the top 10 localities with the number of employees working in enterprises as of the end of 2020, with 2,813,212 employees. This shows the scale and development of the business human resources in this city, while creating many job opportunities for people and contributing to the economic growth of the region.
Other provinces and cities in the top 10 include Hai Phong, Thanh Hoa, Bac Ninh, Nghe An and Ba Ria – Vung Tau. All have important contributions to business activities and economic development in Vietnam.
Advantages & disadvantages of types of companies and businesses in Vietnam
Currently, Vietnam regulates 5 types of businesses, individuals can consider and choose for themselves a suitable company model to establish a company to serve their business.
| ADVANTAGES AND DISADVANTAGES OF EACH TYPE OF ENTERPRISE | |||||
| Single-member LLC | A multi- member LLC | Joint stock company | Partnership | Sole proprietorship | |
| ADVANTAGE | ????The company owner has full decision making power
????Number of members: 01 ????It is not necessary to find a partner to establish a company together. ???? Limited liability ????Compact and flexible organizational structure. |
????Quantity: 2 -50
????Responsible within the scope of capital contribution. |
????Quantity: 03 or more
????Limited liability regime ????Very high capital mobilization capacity ????Simple share transfer procedure ???? The right to list and trade shares on the stock exchange. |
????Company management is not too complicated.
????General partners are individuals with high professional qualifications and prestige. This creates trust for partners. ????Banks are more likely to lend money and defer debt ????Compact organizational structure, easy to manage. |
????Business owners are proactive in deciding all matters related to the business.
????Business owners have the right to sell their business to others.. |
| DISADVANTAGES | ????No shares are issued. Therefore, the company’s ability to raise capital from many sources will be limited.
????A single-member LLC cannot withdraw capital directly but must do so by transferring part or all of the capital to another organization or individual. ????Salaries paid to the Owner are not included in reasonable expenses when calculating corporate income tax. |
????No shares issued. | ????Complex corporate structure
????Difficulty in making a decision ????Additional costs when transferring shares |
????Unlimited liability so the risk level of general partners is very high.
???? No securities of any kind may be issued. ????A general partner who withdraws from the company is still liable for the company’s debts. ????A partnership does not make a clear distinction between corporate assets and personal assets. |
????No legal status
????High risk is responsible for all of its assets. ????No securities of any kind may be issued on the market. ????Not allowed to contribute capital to establish a company or buy shares in other types of enterprises. ????Only one private enterprise may be established. |
NOTES WHEN ESTABLISHING A COMPANY OR BUSINESS
When establishing a company/business, there are some important notes that customers need to consider and comply with to ensure the process goes smoothly and successfully. Below are detailed notes when establishing a company or business:
NOTES ON OWNERS
Customers need to note that currently, the state stipulates that civil servants and public employees are only allowed to contribute capital to joint stock companies and are not allowed to be named in LLCs and declare documents to establish a joint stock company.
NOTES WHEN CHOOSING THE RIGHT TYPE OF COMPANY
First, you need to determine the type of company that is suitable for your business goals, including limited liability companies, joint stock companies, partnerships or sole proprietorships. Each type of company has its own characteristics and requirements, so you need to research carefully to make the right decision that is suitable for the company’s long-term business goals.
NOTES ON PREPARING ESTABLISHMENT DOCUMENTS
To establish a company, you need to prepare a number of necessary papers and documents, including business registration, establishment license, charter capital, company establishment contract and related personal documents. Note that specific document requirements may vary depending on the regulations of each country or region. Siglaw will advise and support clients to fully prepare documents and help you carry out the necessary procedures as quickly as possible with the expected results.
NOTES ON CAPITAL CONTRIBUTION
When deciding to establish a company or enterprise, determining the charter capital is an important factor. The decision on the charter capital must be based on the company’s operational needs and other factors such as contracts signed with partners, participation in projects, the amount of capital required to be deposited for some specific industries and the tax rate to be paid.
The charter capital level chosen must ensure that the company has sufficient financial resources to effectively carry out business activities. The charter capital level must also be consistent with the responsibility of the business owners or the company when committing their capital level.
If the company chooses a charter capital level that is too low, it may encounter difficulties in carrying out important business transactions, such as signing large contracts or participating in large-scale projects. If the charter capital level is not sufficient to meet legal requirements, the company may be considered to have violated the law and face legal consequences.
However, the charter capital level should not be too high, as it may increase the cost of establishing and managing the company. Managing and supervising a charter capital level that is higher than required may create unnecessary financial pressure on the company.
Customers are required to comply with the regulations on legal capital for some regulated industries. The current deadline for fully contributing charter capital as stipulated by the State is a maximum of 90 days from the date of issuance of the Business Registration Certificate. If the customer fails to fully contribute the initially registered charter capital, they may be subject to administrative penalties for violating the charter capital declaration regulations under Decree 122/2021/ND-CP.
“1. A fine of VND 20,000,000 to VND 30,000,000 for the act of falsely declaring charter capital with a value of less than VND 10 billion.
A fine of VND 30,000,000 to VND 40,000,000 for the act of falsely declaring charter capital with a value of from VND 10 billion to less than VND 20 billion.
Fines from VND 40,000,000 to VND 60,000,000 for falsely declaring charter capital with a value from VND 20 billion to less than VND 50 billion.
Fines from VND 60,000,000 to VND 80,000,000 for falsely declaring charter capital with a value from VND 50 billion to less than VND 100 billion.
Fines from VND 80,000,000 to VND 100,000,000 for falsely declaring charter capital with a value from VND 100 billion or more.”
Legal Regulations
It is important to understand the legal regulations related to setting up a company. This includes regulations on tax, labor, intellectual property rights and other business regulations. You need to understand and comply with these regulations to ensure that your business is legal and avoid legal risks.
Financial planning
Before setting up a company, you need to create a detailed financial plan. This includes estimating start-up costs, charter capital, financial resources and long-term financial planning. Financial planning will help you assess the financial capacity of the company and ensure sustainability during operation.
Market and competition
Before setting up a company, it is a good idea to research the market and competitors. This will help you understand the industry, customer needs, trends and market approaches. By understanding this information, you can develop an effective business strategy and increase the company’s chances of success.
Above is information on the topic of “Company establishment service” from the staff of Siglaw Law Firm. If you have any problems that need to be solved, please contact Siglaw for the fastest and completely free support.
Phone: (+84) 961 366 238
Email:
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
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