Small Business Owners’ TRC Application in Vietnam

Việt Nam, Vietnam employment

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TRC – Temporary Resident Card In Vietnam

A temporary residence card (TRC) is a long-term visa that allows foreigners to live in Vietnam for up to 5 years. It is a popular option for foreigners who want to relocate and reside in Vietnam permanently.

TRCs have a longer validity period than regular visas, typically ranging from 2 to 5 years. This means that TRC holders are exempt from the need to apply for a new visa every year, which can save them a significant amount of time and money.

TRC holders also have the right to sponsor their family members to live in Vietnam. This means that if a TRC holder wants their spouse and children to live with them in Vietnam, they can apply for TRCs for them.

To apply for a TRC, you must meet certain requirements, such as having a valid passport, a clean criminal record, and a letter of invitation from a Vietnamese sponsor. The application process can be complex, so it is advisable to consult with an immigration lawyer or consultant.

Đọc thêm: Long-Term Stay Permits in Vietnam: A Guide, Types and Conditions

Types Of TRC

A temporary residence card (TRC) is a long-term visa that allows foreigners to stay in Vietnam for up to 5 years. It is granted to foreigners for the purpose of staying in Vietnam, and there are currently 4 eligible purposes:

Investment: Be a business owner or co-owners (code DT). This includes foreigners who incorporate offshore companies in Vietnam.
Work: Have a job in Vietnam, be hired by a company or an organization in Vietnam (code LD, LV, or NN).
Study: To attend university or schools in Vietnam (Code DH).
Family: Spouse or kids of a Vietnamese or a TRC holder (code TT).

TRC For Business Owners

One way to obtain a temporary residence card (TRC) in Vietnam is to start an investment. As soon as a person’s name appears on the business license of an entity established in Vietnam, they can apply for a long-term stay permit for that purpose. This stay permit can be either a visa or a TRC with the code DT. There are 4 subcategories within this DT group:

DT1: This is granted to foreign investors and representatives of foreign organizations investing in Vietnam with a capital contribution of at least VND100 billion, or investing in business fields and areas of investment incentives determined by the Vietnam Government. The stay permit for this group will be valid for a period of up to 5 years. (A TRC can be granted.)
DT2: This is granted to foreign investors and representatives of foreign organizations investing in Vietnam with a capital contribution of VND 50 billion – under VND 100 billion, or investing in the business fields of investment encouragement determined by the Vietnam Government. The stay permit for this group will be valid for a period of up to 3 years. (A TRC can be granted.)
DT3: This is granted to foreign investors and representatives of foreign organizations investing in Vietnam with a capital contribution of VND 3 billion – less than VND 50 billion. The stay permit for this group will be valid for a period of up to 2 years (a TRC can be granted).
DT4: This is granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with less than VND3 billion in capital. The stay permit for this group will be valid for a period of up to 12 months (a VISA can be granted).

As such, only the groups DT1, DT2, DT3 are eligible to an investor TRC. Those who belong to group DT4, whose capital investment is below VND 3 billion (roughly USD 130,000), cannot apply for a DT TRC. Instead, they can apply for a DT visa which has a shorter validity and cannot sponsor their family members.

It is important to note that the requirements for obtaining a TRC for investment purposes may change, so it is advisable to carefully research or contact our expert for the most up-to-date information.

How Small Business Owners Obtain TRC In Vietnam

If you are a foreign investor who wants to start a small business in Vietnam, you may not be eligible for a DT TRC (Temporary Residence Card for Investors) if your investment capital is below VND 3 billion. However, you can still obtain a Work Permit (LD) and a Work (LD) TRC by assigning yourself a position in your own company.

The owner of the company can be at the same time the Director and Legal Representative of the company. With this appointment, the investor can be considered an employee of the company and can apply for a Work Permit. Upon receiving the Work Permit, the investor can apply for a Work (LD) TRC which is valid for 2 years and renewable.

For Legal Representatives, the Work Permit does not require a degree or proof of experience anymore (new regulation applied from 2021 – the Decree 152). Therefore, it is much easier to obtain a Work Permit for a Legal Representative compared to that for a regular job position.

The work permit process takes 30-45 days to be completed, and the TRC application takes roughly 2-3 weeks. Iris International can help you with the entire process, from incorporation to obtaining a Work Permit and TRC.

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