Limited Liability Company (LLC)

Typically, investors seeking to setup an LLC will be looking at Vietnam’s ‘100% Foreign-Owned Enterprise’. An LLC is an incorporated company, with limited legal liability, while a joint stock company is a variation of the same, but which is intended by the investor to become a publicly traded company. Requirements and registered capital For most sectors and business lines, Vietnam requires no minimum capital requirements. However, the registered capital will be assessed by the Department of Planning and Investment for whether it is adequate to cover the expenses of the business until it generates enough revenue to cover its costs. It is possible to set up a basic business services company with less than USD 10,000 in some cases, but in most cases it would be at or above this threshold, depending on the nature of the business. It is best to verify whether your business may require minimum capital investment however, given that some industry sectors (business lines) do have requirements. Examples include: • Finance, Banking, Insurance and Fin-tech; • Language centers or Vocational schools; • Real estate companies; Ownership LLCs can be broken down into two types: single-member LLCs which have only one owner, and multiple-member LLCs, which will have more than one stakeholder. These owners can be private individuals or companies, depending on the requirements of a given investor.