Before starting a business in Vietnam, it’s essential to understand the cost structure involved in setting up a company. Understanding what you need to pay for and why enables you to plan your budget efficiently, minimize unnecessary expenses, and make informed investment decisions.
1. Initial Capital Investment
This is typically the largest cost when establishing a company in Vietnam. Investors must declare their committed capital during registration and contribute the full amount within 90 days after receiving the Business License.
Most investors start with around USD 10,000, though smaller projects (USD 3,000–5,000) in simple service sectors such as consulting or IT are also approved.
💡 Note: Higher capital may support a longer-term visa, while delayed capital contribution can lead to fines or compliance issues.
2. Registered Business Address (Physical or Virtual Office)
A legal business address is required to register a company. Residential addresses are not accepted.
In major cities like Ho Chi Minh City and Hanoi, virtual offices are widely used for service-based businesses.
- Virtual office: USD 400–800/year
- Grade A+ office (city center): USD 1,000–1,900/year
Virtual office packages usually include the use of a registered address and company signage, but do not include workspace access unless otherwise agreed.
3. Resident Director
Every company in Vietnam must appoint a Resident Director who legally represents the company and resides in the country.
If the investor is not based in Vietnam, they can nominate or hire a local representative for this role.
- Cost: USD 250–450/month, or USD 0 if self-arranged through a trusted contact.
4. Administrative & Government Fees
This includes notarization, legalization, official government charges, and related administrative expenses.
Average cost: USD 100–200 (one-time fee).
5. Consulting and Registration Service Fees
Vietnam’s business registration procedures can be complex, involving detailed documentation and legal compliance.
Therefore, most investors choose to work with professional consulting or legal service providers.
Typical costs:
- Standard business sectors: USD 900–2,500
- Conditional sectors (e.g., logistics, tourism, HR): higher fees and longer processing times
Standard packages often include:
- Application for IRC (Investment Registration Certificate) and BRC (Business Registration Certificate)
- Corporate bank account setup
- Initial tax registration
Tip: The cheapest service is not always the best. Choose experienced consultants to ensure accuracy, transparency, and long-term compliance.
6. Post-Establishment Costs
Once your company is licensed and has an active bank account, it is officially ready to operate.
However, there are ongoing costs and compliance duties to consider.
Annual business license tax:
- USD 100–200/year, payable from the second year of operation.
- Late payment may result in fines or tax code suspension.
Common corporate taxes:
- VAT (Value Added Tax): 8–10%
- CIT (Corporate Income Tax): 20% of profits
- FCT (Foreign Contractor Tax): 3–5%
7. Accounting and Tax Compliance Setup
After registration, companies must establish a compliant accounting and reporting system according to Vietnamese regulations.
This includes:
- Registering for digital signatures
- Setting up e-invoices and accounting software
- Registering for social insurance (if hiring employees)
At Metasource, these steps are covered under our Accounting & Payroll Service, ensuring full transparency and no hidden fees.
Summary
Setting up a company in Vietnam involves several key cost categories:
Capital investment + Registered address + Legal representative + Government fees + Consulting services + Post-setup compliance.
By understanding these costs upfront, investors can plan effectively, avoid legal risks, and start business operations smoothly in one of Asia’s fastest-growing markets.
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