For businesses involved in import, export, and domestic product distribution, establishing a trading company can be an advantageous choice. Furthermore, a trading company facilitates participation in e-commerce, wholesale, and retailing. It also engages in various commercial activities related to the buying and selling processes. In Vietnam, there are no specific minimum capital requirements for trading businesses. Hence, this allows investors the freedom to determine the capital, which can be as low as USD 10,000-$15,000 for a trading company.
Why should you open a trading company in Vietnam?
Establishing a trading company is the most common approach for businesses looking to engage in import and export activities. This model also supports domestic distribution, including retail, wholesale, and franchising, in Vietnam. This method is both straightforward and cost-effective.
Incorporating a trading company in Vietnam typically takes about 30-45 days and has minimal requirements, making it an attractive option for entrepreneurs. Additionally, trading companies benefit from Vietnam’s WTO commitments, allowing for 100% foreign ownership.
For foreign businesses seeking to source goods in Vietnam for resale internationally, trading companies are an ideal solution. Without a Vietnamese trading company, companies would face challenges, such as purchasing from abroad and incurring additional costs for shipping, customs duties, importer of record fees, and VAT when reselling in Vietnam through local distributors.
In summary, if you’re looking to thrive in Vietnam’s import-export and distribution sectors, establishing a trading company is your best bet. It provides flexibility, cost savings, and access to the growing Vietnamese market.
What do you need to establish a trading company in Vietnam?
- Registering a trading company in Vietnam is a straightforward process that requires meeting a few essential conditions. Here’s what you need to know for successful registration:
- Business Address: You must have a business address, which can be a virtual office address.
- Legal Representative: It’s necessary to appoint a resident legal representative in Vietnam during the registration process.
- Capital Investment: Clearly define your capital investment for the company.
Ensuring that you meet these requirements can streamline your trading company registration in Vietnam and pave the way for a successful business venture.
From the Investor’s side, the following documents will be required:
Businesses and individuals need to provide specific documentation when establishing ownership.
For individual ownership, you will need a notarized copy of your passport and a bank statement from the last three months.
For corporate ownership, it’s essential to have legalized documents from your overseas company. These may include business licenses, company charters, articles of association, financial statements, and a bank statement from the last three months.
Additionally, legalization is a crucial step for corporate ownership cases. This process can be completed at the nearest Vietnamese embassy abroad. Keep in mind that the legalization process can take several weeks or even months, depending on the regulations and circumstances in each country.
Ensure you have all the necessary documents ready to streamline this process and avoid delays.
Steps to register a trading company in Vietnam?
A 100% foreign-owned trading company in Vietnam will go through 02 major steps:
- Obtain the Investment Registration Certificate (IRC)
- Obtain the Business Registration Certificate (BRC) or ERC
- Make the company’s seal/stamp
- Open the company’s bank account
- Inject the committed capital into the company’s bank account
- Register Tax account and E-invoice account
The whole process takes 4-6 weeks or 30-45 days to complete.
Opening trading company with Retailing function in Vietnam?
When starting a trading company, it can immediately engage in import/export and wholesale business using a B2B model. However, if the company intends to enter the retail market, it must acquire an additional retailing license to operate legally.
Retailing licenses come in various types, depending on the business model. For online retailing, a Trading/Retailing license is required for each product sold to end-users. If your business involves physical retail outlets or showrooms, each location must secure its own license to ensure compliance.
Understanding the licensing requirements for retailing is crucial for businesses looking to expand into this space. Make sure to obtain the necessary licenses to avoid legal issues and to operate smoothly in both online and physical retail environments.
Can I open a trading company in Vietnam without being here?
Yes, you can.
Starting a remote business is entirely feasible; however, you must meet the necessary conditions for operation. For those interested in launching a trading business, it’s crucial to fulfill specific requirements, including having a registered business address, a resident legal representative, and adequate capital.
You can easily arrange the first two conditions. Bank statements or financial records can demonstrate proof of sufficient capital. By ensuring these requirements are met, you can successfully operate your business remotely and tap into the endless opportunities available in the digital marketplace.
Open a Trading company easily with Iris International
At Iris International, we specialize in remote business incorporation. Moreover, we have assisted thousands of businesses to operate without needing to be physically present in Vietnam. Our expert team is here to guide you through the entire process, including costs and timelines for incorporating a trading company with 100% Foreign Direct Investment (FDI).
Contact us today to learn more about how we can provide efficient and cost-effective business solutions tailored for the Vietnam market. Let us help you successfully establish and grow your business in this vibrant economy!
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