Establishment procedures vary greatly depending on the industry
When establishing a company in Vietnam, there's an important fact that many people overlook. It's that the establishment procedures and time required vary greatly depending on the industry. Because of this, there are often cases where people waste several months just on company establishment and can't even start their actual business.
Some industries require complex licensing procedures, which can extend the establishment period. Also, minimum capital requirements may apply. On the other hand, there are industries that can be established quickly with relatively simple procedures.
'Opportunity Exploration' Companies Preferred by Many
The purpose of establishing a company in Vietnam is often not simply to expand an existing business. Rather, the main purpose is increasingly to explore new opportunities while staying in Vietnam long-term. The establishment of an 'opportunity exploration' company suitable for such cases takes the following form:
- Register only the minimum business lines at the time of establishment
- Add business lines, licenses, etc. as the business progresses
- First remit the minimum investment capital to Vietnam
Of course, if the ultimate target industry is heavily regulated such as finance, education, law, or medicine, this 'opportunity exploration' company approach is not appropriate. However, this approach is still attractive to a considerable number of small and medium-sized business owners.
3 Benefits of Establishing an 'Opportunity Exploration' Company
Prioritizing the establishment of a company in an industry with simple procedures and short turnaround time offers the following benefits:
- You can quickly obtain work permits, residence cards, etc. for long-term stay.
- A channel is established to legally remit investment funds to Vietnam.
- Temporarily bypass minimum capital requirements that arise depending on the industry.
This strategic approach lowers initial entry barriers and provides a favorable foundation for future business expansion based on business progress and experience gained.
Which Industry Should You Choose?
Factors to consider when selecting an industry for company establishment include:
- Complexity of establishment procedures: Prioritize industries that don't require additional licenses beyond company registration
- Minimum capital requirements: Choose industries without initial investment capital restrictions
- Business expansion potential: Select industries with relevance for future business line additions
Specific examples of 'opportunity exploration' industries include consulting, wholesale distribution, IT development, etc., but the optimal choice may vary depending on individual circumstances and goals.
What's the Best Choice for Your Situation?
Establishing a company in Vietnam is a complex process, and the optimal approach may differ depending on individual circumstances. Therefore, it's important to seek expert advice.
- Personalized Strategy Development : Propose a tailored approach that fits your goals and situation
- Identify Potential Risks : Identify and prepare for previously unknown legal and financial risks
- Save Time & Money : Prevent unnecessary delays and costs through efficient procedure progression
To find out the most suitable Vietnam company establishment strategy for your situation, feel free to contact us. We'll help you start a successful business in Vietnam through expert advice.