Our full-package advisory solution provides legal peace of mind through comprehensive risk management and strict compliance assurance. With a transparent and time-efficient process, we help investors confidently enter the market and grow their business.
- Free Risk Assessment Consultation
- Legal Document Preparation
- Application Submission & Explanation on Your Behalf
- Result Collection & Handover
- Post-Licensing Business Advisory
HAVE YOU FULLY ANTICIPATED THESE 4 LEGAL RISKS WHEN SETTING UP A FOREIGN-INVESTED COMPANY ON YOUR OWN?
When setting up a foreign-invested company, also known as an FDI company, foreign investors do not only face administrative procedures. They may also encounter strict regulatory barriers. Below are four common legal risks investors often face.
LANGUAGE BARRIERS AND COMPLEX LEGAL TERMINOLOGY
Investors may not fully understand the requirements under Vietnamese legal documents due to language barriers and the technical nature of legal terminology. Inaccurate self-prepared documents often result in applications being rejected by the authorities, leading to wasted time and effort.
RISKS RELATED TO MARKET ACCESS CONDITIONS AND WTO COMMITMENTS
Registering incorrect business lines or failing to understand prohibited, restricted, or conditional business sectors may cause a project to be refused from the outset. It may also limit the company’s ability to expand its business operations in the future.
PROLONGED LICENSING TIMELINE
The investment appraisal process involves multiple departments and authorities. Lack of experience in responding to requests for clarification, amendment, or supplementation may prolong the licensing timeline and cause investors to miss market-entry opportunities compared with competitors.
POST-LICENSING COMPLIANCE RISKS
Many investors are subject to significant administrative penalties for missing the 90-day capital contribution deadline, failing to submit periodic investment reports, or making incorrect tax declarations immediately after the company starts operating.
WHAT DO YOU RECEIVE FROM MGI CONSULTING’S FDI SERVICE?
As a legal advisory firm, we carry out procedures under an authorized representation mechanism, ensuring accuracy and strict compliance at every stage.
Preliminary Legal Consultation and Assessment — FREE
We assess the feasibility of your project and advise on business lines, market access conditions under WTO commitments, charter capital, and project location.
Document Preparation and Standardization
We prepare a complete legal application dossier, including the project proposal, company charter, application forms, and other required documents, standardized in accordance with the requirements of the investment registration authority and relevant departments.
Application Submission and Explanation on Your Behalf
We represent investors in handling all administrative procedures with the competent state authorities. Where additional clarification is required, we directly work with the handling officer or appraisal council to explain and defend the application dossier.
Result Collection and Handover
We collect and hand over the original certificates, including the Investment Registration Certificate and Enterprise Registration Certificate, while ensuring the confidentiality of the client’s documents.
Post-Licensing Advisory
We provide detailed guidance on mandatory post-establishment procedures, including the Direct Investment Capital Account, tax registration, invoices, company seal, and other compliance requirements.
FULL-PACKAGE PRICING FOR FOREIGN-INVESTED COMPANY FORMATION SERVICES
| Trading & Service Sectors | Manufacturing Sector | Other Sectors |
|---|---|---|
| USD 1,200 | From USD 2,500 | Contact Us |
| Deliverables include:– Investment Registration Certificate (IRC)– Enterprise Registration Certificate (ERC)– Company Charter– Company Seal– Digital Signature– E-Invoice Setup | Deliverables include:– Investment Registration Certificate (IRC)– Enterprise Registration Certificate (ERC)– Company Charter– Company Seal– Digital Signature– E-Invoice Setup | Deliverables include:Depending on the specific business sector |
MGI CONSULTING’S 6-STEP PROCESS FOR FOREIGN-INVESTED COMPANY FORMATION
Step 1: Requirement Intake and Strategic Consultation
We receive your investment objectives and provide preliminary advice on conditions, location, required documents, and the most suitable process.
Step 2: Project Legal Due Diligence
We conduct an in-depth review of market access conditions under WTO commitments, business lines, and potential application risks.
Step 3: Document Development and Standardization
We draft, translate, and complete the explanatory application dossier in accordance with the standards required by state authorities.
Step 4: Investment Licensing Procedure
We represent you in working with the investment registration authority, providing explanations where required, and obtaining the Investment Registration Certificate.
Step 5: Enterprise Registration Procedure
We carry out the enterprise registration process, arrange the company seal, and complete the public announcement of establishment.
Step 6: Mandatory Post-Licensing Requirements
We support mandatory post-establishment procedures, including opening the Direct Investment Capital Account, setting up initial tax records, invoices, digital signatures, and handing over the complete results to the client.
FREQUENTLY ASKED QUESTIONS ABOUT FOREIGN-INVESTED COMPANY FORMATION
Q1: Is the USD 1,200 fee fully inclusive?
Yes. The USD 1,200 fee is a full-package fee for obtaining the Investment Registration Certificate and Enterprise Registration Certificate for ordinary business lines. This fee does not include notarized translation costs or service fees for additional conditional licenses if your business sector requires them.
Q2: How long does it take to complete the entire process?
The standard timeline is 25 to 40 working days.
Q3: Can I own 100% foreign capital in every business sector?
No. Most business sectors, such as manufacturing, software, and management consulting, allow 100% foreign ownership.
However, certain conditional sectors, such as advertising, logistics, and tourism, are subject to foreign ownership limits under WTO commitments. We will assess your business sector before signing the service agreement.
Q4: What is the minimum charter capital required to establish a foreign-invested company?
Vietnamese law does not prescribe a minimum charter capital for most business sectors. However, the registered capital must be sufficient to implement the project.
If the capital is too low, for example below VND 1 billion, the licensing authority may review the application more carefully and request an explanation. For certain specific sectors, such as real estate and finance, the law provides minimum legal capital requirements.
Q5: What is the difference between an IRC and an ERC?
This is one of the most important distinctions.
An IRC, or Investment Registration Certificate, is the license for your investment project. It confirms the project objectives, scale, location, and initial investment capital.
An ERC, or Enterprise Registration Certificate, is the license for your company. It confirms the company’s legal status, company name, and legal representative.
Foreign-invested enterprises are required to obtain both certificates before they can operate in Vietnam.
Q6: Can I establish a foreign-invested company using an apartment or private house as the registered address?
For apartments: Absolutely not, if the unit is designated for residential use only. The law strictly prohibits using this type of apartment as a company office.
Exception: You may only use premises located in buildings with an office function, such as officetels, or mixed-use complexes that are legally registered for business purposes.
For private houses: This is very difficult. The location is only valid if the land use right certificate clearly states that the land use purpose is commercial service land or business land, not merely residential land.
In summary, the licensing authority will only accept the registered address if the legal documents, such as the land use right certificate or construction permit, clearly prove that the premises have an office or business function.