Conditions and procedures for foreign investor to operate financial management consulting services in Vietnam
Vietnam is becoming an attractive destination for foreign investors to invest in various business sectors. Among them, financial management consulting services are garnering special attention from investors. Initially, the name of the industry might raise concerns among investors due to specific conditions regulated by Vietnamese laws. However, financial management consulting is a sector that Vietnam has committed to opening under the WTO commitments for foreign investor. Therefore, in practice, there are not many difficulties for investor to operate in this field in Vietnam. This article will provide you with all the necessary information and procedures to establish a foreign company engaging in financial management consulting services in Vietnam.
1. Conditions for operating financial management consulting services in Vietnam
Vietnam’s commitments within the framework of the WTO do not impose specific conditions or market access restrictions on foreign investor operating in the financial management consulting industry in Vietnam. According to Vietnamese law, financial management consulting services do not fall under regulated business sectors, allowing foreign investor to establish companies engaging in financial management consulting without encountering any barriers or limitations.
No. | Profession | VSIC | CPC | Restrictions on market access | License |
---|---|---|---|---|---|
1. |
Management consulting activities Detailed: Financial management consulting services |
720 | 865 | / | / |
2. The sequence of steps to operate in the financial management consulting industry in Vietnam
To operate a financial management consulting business in Vietnam, investors can choose to invest directly (establishing a 100% foreign-owned enterprise) or acquire a portion or the entire shares/capital of an existing enterprise in Vietnam. In this article, we will focus on the process of direct investment, which is a common approach for the mentioned industry in Vietnam. The following are the steps to be followed:
Step 1: Registering for the Investment Registration Certificate (IRC)
The documents shall be submitted to the Investment Registration Office of the Department of Planning and Investment. Usually, the processing time is about 15 working days. However, if the intended business industry is not committed by Vietnam, the investment registration agency shall consult with the specialized management agency.
Step 2: Registering for the Business Registration Certificate (BRC)
After completing the investment registration and receiving the Investment Registration Certificate, the Investor submits the dossier for Business Registration. The processing time shall be 03 working days and the result that the Investor shall receive is the Business Registration Certificate. This document records the legal entity status of the investment project management organization according to the Investment Registration Certificate that has been issued.
Immediately after receiving the Business Registration Certificate, the Investor proceeds to complete the procedure to make the company’s seal and announce the seal sample.
Step 3: Opening Bank Account
After completing Step 3, the Enterprise has the right to establish contracts and agreements. However, to contribute the capital shares and make the payments in order to contribute capital and make payments, the Investor shall open a bank account at any commercial bank. It shall be noted that the Investor shall open 02 separate accounts for the two purposes of capital contribution and payment transactions.
Step 4: Performing Tax Registration Procedure
The law sets a specific time limit for newly established enterprises to complete the initial tax declaration procedures. At this step, the enterprise shall fulfill its obligations of paying the business license tax, registering for digital signatures, and electronic invoices. These are the conditions for the enterprise to issue invoices to the Client and perform other tax-related activities.
With the necessary information and steps in hand, the investor can now determine the estimated costs, timeframes for each step, and the roles of service providers involved in the process.
Completing these steps ensures that the investor has fulfilled all the legal requirements to conduct business activities in Vietnam, including capital contribution, issuing invoices, and other obligations when providing financial management consulting services to the client. However, the investor shall note that Vietnamese law imposes reporting obligations for management purposes. Therefore, it is important to be aware of the reporting deadlines throughout the year to ensure compliance. For further information, please refer to the article: Reports that Investors shall perform in 2023.
Time of writing: 15/05/2023
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You can refer for more information:
- Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 1)
- Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 2)
- Procedure for Foreign Investor to contribute capital, purchase shares in the enterprise in Vietnam.
- The enterprise with opening and using direct investment capital account
- Avoiding the risks when leasing the office in Vietnam – some recommendations
- Foreign Investors provide Employment Services in Vietnam
- Franchise in Vietnam (Part 1)
- Franchise in Vietnam (Part 2)
- Foreign investor doing hotel business in Vietnam