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Setting up a company with Korean- invested capital in Vietnam
The fastest options of establishing a company with Korean capital in Vietnam
Establish a new Korean-owned FDI company in Vietnam
Companies with 100% Korean investment capital
According to the Commitment Vietnam signed with the WTO, currently Korean investors are allowed to invest 100% of capital in projects in Vietnam, except for specific industries and industries that do not allow ownership of 100% shares by foreign investors. Therefore, when investing in Vietnam, investors should pay attention to the list of specific industries and industries that do not allow 100% foreign capital ownership before deciding to invest in Vietnam.
Companies which have from 1 to 99% Korean capital
If the investor does not want or the conditions do not allow the establishment of a 100% Korean FDI company, the Korean investor can still invest in a Vietnamese enterprise with a capital ratio lower than 100%. In this case, the percentage of capital contribution depends on the ability and conditions of the investor and the investment industry they choose.
Joint venture with Vietnamese enterprises
The establishment of a Korean-invested enterprise in the form of a joint venture with a Vietnamese enterprise helps Korean investors to better access the Vietnamese market and take advantage of the experience and advantages of Vietnamese partners. In this form, the investor can use the form of repurchasing shares from the current shareholders of the company or purchasing contributed capital from members who are participating in the business.
Dossier and process of establishing a company with Korean capital in Vietnam
Procedures for establishing a new 100% Korean invested FDI company
Step 1: Apply for an investment registration certificate to establish a Korean investment company
Profile composition:
- An application form to a competent authority for permission to implement the investment plan;
- A written request for permission to change the purpose of land use, land allocation, land lease, proposal for land use plan (if any);
- A written request for implementation of an investment project to establish an FDI enterprise with Korean capital;
- The written proposal of the plan intended to be implemented in the investment project;
- Presentation document explaining how to use technology on the list of restricted technology exchange (if any);
- Copy of financial statements for the last 2 years;
- Copy of passport, or ID card (for individual investors). A copy of the certificate of establishment (for institutional investors);
- Other;
Step 2: Apply for a enterprise registration certificate for a company with Korean capital in Vietnam
The following documents need to be prepared:
- An application for business registration;
- Enterprise’s charter;
- List of members of the company;
- Copy of passport, or ID card (for individual investor);
- Notarized copy of Certificate of Business Registration (for members being organizations);
- Copy of ID card of the legal representative of that enterprise.
Step 3: Publicly announce information about the enterprise on the online website of the National Business Registration Portal within the prescribed time limit.
Step 04: Posting the announcement of establishment of a company with 100% Korean FDI capital
In order to complete the establishment procedures, after being granted the enterprise registration certificate, the newly established company needs to make a public announcement on the National Portal. The publication division of the Business Registration Authority – Provincial Department of Planning and Investment will publish this report.
Step 5: Engrave the company seal
The process of establishing a joint venture company with Korean capital in Vietnam
Step 1: First, Korean investors register to buy shares/capital, or contribute capital to an operating Vietnamese enterprise.
Profile composition:
- Written registration for purchase of shares, purchase of contributed capital, or capital contribution;
- Copies of legal papers of Korean investors buying shares, purchasing capital contributions, or contributing capital; and Vietnamese enterprises with Korean investors buying shares, purchasing capital contributions, or contributing capital;
- A written agreement in principle on the purchase of shares, purchase of contributed capital, or capital contribution between a Korean investor and a Vietnamese enterprise in which the Korean investor contributes capital, buys shares, or purchases a capital contribution, or between the Korean investors with a shareholder or member of that Vietnamese enterprise;
- A copy of the certificate of land use right of the Vietnamese enterprise in which the Korean investor contributes capital, buys shares or purchases capital contribution.
Step 2: Transfer the contributed capital and shares after carrying out the procedures for changing members
According to the provisions of Article 66 of Decree 31/2021/ND-CP, after a Korean investor is approved to contribute capital, purchase shares, or purchase a capital contribution portion of a Vietnamese enterprise with a Korean investor contributing capital, purchase of shares, purchase of contributed capital will carry out the procedures for changing members at the business registration office.
Fee of services for setting up a business with Korean capital of Siglaw Law Firm
The cost of establishing a company with Korean capital in Vietnam will depend on many factors. Here are some costs and price list for establishing Korean FDI enterprises in Vietnam in the market:
| Business registration fee | From 1 million VND to 3 million VND (depending on the type of business and locality) |
| Prices for translation and notarization of documents | 1 million VND to 5 million VND |
| Consulting fee for establishing a Korean-owned FDI company | From 5 million VND to 20 million VND |
| Tax registration fee | From 500,000 VND to 1 million VND |
| Price appraisal and operation license | From 15 million VND to 30 million VND |
In addition, the process of establishing a company with Korean capital in Vietnam will have other costs incurred according to the size and field of business investment. For detailed information on service costs at Siglaw Law Firm, please contact hotline 096 781 8020 for more dedicated service.
Legal basics
- Law on Investment 2020;
- Law on Enterprise 2020;
- Decree 31/2021/ND-CP;
- Free Trade Agreement between Vietnam and Korea (VKFTA);
- Commitment Form 318/WTO/CK
Hopefully, the article “Setting up a company with Korean- invested capital in Vietnam” by Siglaw Law Firm has helped you better understand the contents surrounding the establishment of a Korean-owned company in Vietnam. If there are any problems that need to be solved, please contact Siglaw for free support.
Phone: (+84) 961 366 238
Email:
- vphn@siglaw.com.vn
- vphcm@siglaw.com.vn
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