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Dossier & procedures for establishing a foreign-invested tourism company
Conditions for establishing a foreign-invested tourism company
According to international commitments
Vietnam is one of the member countries of the WTO. According to the Commitment Form 318/WTO/CK between Vietnam and the WTO, Vietnam has not yet committed to the form of a 100% foreign owned company for travel services, so if foreign investors want to be provided with this service, In Vietnam, they are forced to enter into a joint venture with a Vietnamese partner.
Besides, for the tourism sector, Vietnam has signed a commitment with the WTO: “None, except tourist guides in foreign-invested enterprises shall be Vietnamese citizens. Foreign service supplying enterprises can only do inbound services and domestic travel for inbound tourists as an integral part of inbound services.”
In addition, according to the Commitment Form 318/WTO/CK to the WTO, if foreign investors want to organize tours, they are required to enter into a joint venture with a unit that has been granted a international tourism service business license.
According to Vietnamese Law
According to the law on tourism in Vietnam, foreign-invested enterprises will only be able to provide travel services in the form of international travel service business (the target audience is international tourists coming to Vietnam). The law stipulates the conditions to be allowed to do business in international travel services as follows:
- Enterprises intending to provide international tourism services must establish foreign-invested tourism companies in accordance with the law on enterprises;
- The margin requirement will be VND 50,000,000 (fifty million). An international travel service business enterprise is obliged to make a deposit at a bank;
- Requirements for the person in charge of the travel service business: this person must have a college degree or higher in tourism; If he/she graduates from a field other than travel, he/she must have a certificate of international tourism management.
Decree 94/2021/ND-CP replacing Clause 2, Article 14 of Decree 168/2017/ND-CP has lowered the deposit level from VND 250,000,000 to VND 50,000,000. This is a good sign that the state creates more favorable conditions for foreign investors to attract foreign investment into Vietnam.
Procedures and documents for setting up a foreign-invested tourism company
As mentioned above, if a foreign investor wants to provide tourism services in Vietnam, the investor is forced to enter into a joint venture with a Vietnamese partner. Below, Siglaw would like to provide our customers with an overview of the steps to establish a foreign-invested tourism company:
- Step 1: Submit an application for a license to establish a foreign-invested project in the form of a joint venture
- Step 2: Complete the registration procedures for the establishment of a joint venture company
- Step 3: Carry out procedures to apply for an international tourism service business license for a Vietnamese company.
Dossier of application for an international tourism service business license
- 01 application for an international travel service business license;
- 01 Certified copy of the Enterprise Registration Certificate;
- 01 Original Certificate of deposit for international tourism service business of the enterprise;
- 01 copy of diplomas and certificates of the person in charge of travel service business (certified);
- 01 copy of the labor contract or appointment decision between the tour operator and the person in charge of the travel service business (certified).
After preparing a full set of documents, the company needs to submit the application to Vietnam National Administration of Tourism. The Vietnam National Administration of Tourism will evaluate and review the dossier and decide whether the business is eligible to be granted an international tourism service business license. The deadline to receive the results will be about 10 days from the date of receiving the valid application. In case of refusal, the enterprise will be notified in writing and clearly state the reasons for the refusal.
Service fee for setting up a foreign-invested tourism company in Vietnam
The cost of establishing a foreign-invested tourism company in Vietnam will depend on many factors. Here are some costs and price list for establishing a foreign-invested tourism company on the market:
- Business registration cost: from 1 million VND to 3 million VND (depending on the type of business and the location).
- Cost of translation and notarization of documents: from 1 million VND to 5 million VND.
- Company establishment consulting costs: from 5 million VND to 20 million VND.
- Tax registration fee: from 500,000 VND to 1 million VND.
- Expenses for appraisal and operation license: from 15 million VND to 30 million VND.
For detailed information on service costs at Siglaw, please contact us for more dedicated service.
Legal basis
- Law on Enterprise 2020
- Law on Investment 2020
- Law on Tourism 2017
- Commitment Form 318/WTO/CK
Above is Siglaw’s advice on the topic From A-Z how to set up a foreign-invested tourism company in Vietnam. If there are any problems that need to be resolved, please contact Siglaw for free support.
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