Query about registering a business in Vietnam

Hello,

As normal, subject to the business activity that the foreigner intends to do, they select the option that they will facilitate and fund a reliable Vietnamese person (the “Trustee”) to set up a local company wholly by such Trustee and thereafter the expat will acquire the partial or wholly capital of the local company from the Trustee to become the owner of the local company.

Under this way, it is cheapest, easier and saves time to get all licenses/permits to run your business in Vietnam. At the later stage, the procedure for capital acquisition seems to be quite straightforward under the laws of Vietnam.

Moreover, to eliminate the risk from the Trustee, you can enter into some agreements with the Trustee, namely: (i) the loan agreement, under which, you finance the amount to the Trustee to subscribe the capital into the local company; and (ii) the call & put option agreement, under which, the Trustee unconditionally and irrevocably grants you the exclusive right to acquire partially or wholly the Capital of the local company from the Trustee at any time after its establishment.

I hope this helps. ***

Lawyer Cong