BUSINESS IN VIETNAM AND OPENING A COMPANY FOR IMMIGRATION

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Moving to another country for permanent residence is associated with a large number of legal subtleties and problems. Foreigners who decide to open a profitable business on a foreign land face no less difficulties. Often, Vietnam is chosen for these purposes, offering investors and entrepreneurs excellent conditions for doing business. So it seems to our compatriots from the outside. But is it really so?

General information on business immigration in Vietnam

Before you finally break off ties with your homeland and plunge headlong into matters related to the registration of your own company in Vietnam, you need to get acquainted in more detail with the specifics of doing business in this country.

What is business immigration in general

The concept of "business immigration" is not very familiar to Russians. Its essence is the transfer of business interests outside their homeland.

Entrepreneurs abroad are attracted by:

Special conditions for doing business;
Cheap labor;
Tax breaks and more.

All this looks extremely attractive against the background of Russian realities:

Corruption;
Long and complex registration of your own company;
High interest rates on loans;
Ignoring the needs of small and medium-sized businesses.

Business immigration is beneficial to the host country, as it receives:

Financial injections into the economy;
New workplaces.

In countries with a high influx of foreign entrepreneurs:

The market is developing;
The quality of goods is improving;
The list of services in various fields of activity is expanding.

What is a business visa and what type of visa can you get in Vietnam?

A business visa is a document that allows foreigners to legally stay on the territory of another state and conduct business with various companies.

Russians have the opportunity to obtain a business visa of the DN category when entering Vietnam. It is issued for different periods:

1 month;
3 months;
Six months;
Year.

In addition, the document is classified by the number of entries into the country:

One-time;
Multiple.

These points are discussed at the stage of filing documents.

What type of business is more profitable to open in Vietnam

Immigrants prefer to pursue their business plans in one of the following ways:

Investment;
Moving an already operating business from home;
Opening a company in a new location;
Buying a business abroad from a citizen of the country.

Vietnam joined the WTO more than 11 years ago, and all these years the country's economy has been growing steadily. This is partly facilitated by changes in legislation that attract foreign businessmen to the country.

The most interesting and profitable for them are the following areas:

Vietnam immigration conditions for entrepreneurs

It is important for foreign businessmen to understand exactly how to organize their move to Vietnam, and what awaits them in the first months of their stay in the country. You need to start by solving visa issues.

Choosing the required visa and the conditions for obtaining it

In order to freely conduct business in Vietnam, you need a business visa.

It is issued upon arrival at the international airports of four cities:

Ho Chi Minh City;
Hanoi;
Danang;
Nha Trang.

Before traveling, the entrepreneur needs to receive a confirmation letter. Without it, the visa will not be affixed.

The cost of a permit document for Russians consists of two types of commission:

For services;
Stamp duty.

The first group includes payment for the services of companies involved in the preparation of a visa. Most often, businessmen turn to them, as this simplifies the paperwork process. And many firms even meet migrants on the spot and accompany their activities for the first months.

The stamp duty is payable locally upon receipt of the visa. Its price depends on the length of stay in the country:

A single entry permit for up to 3 months costs $ 25;
A multiple-entry visa for the same period of time will cost a foreigner $ 50;
A half-year visa costs $ 95;
You need to pay for a permit document for a year 135 dollars.

Consideration of an application from a businessman usually takes no more than 2 days... If you wish, you can pay extra about 40 dollars and receive a confirmation letter in 4-8 hours.

Most of the business visa applications are approved by the Vietnamese Embassy.

Conditions for obtaining a residence permit, permanent residence, citizenship

It is rather difficult to obtain a residence permit in Vietnam, since the policy of the Communist Party is aimed at limiting the number of foreigners who have such a right. The easiest way to get a residence permit is for highly qualified foreigners seeking to work in the country.

The main conditions for obtaining a residence permit are as follows:

Age over 18;
Higher secondary education;
No criminal record at home and in Vietnam;
Having a work visa;
A valid contract with an employer for a period of more than 3 months.

Marriage in itself is not a reason for issuing a residence permit to a foreigner. But as a person who has entered into a marriage union with a Vietnamese, a foreigner may well apply for a residence permit.

Not everyone can get permanent residence in Vietnam. To do this, you need to meet a number of requirements:

Permanently reside in the country for 5 years;
Pass the naturalization procedure.

The last point is the most difficult for a foreigner to fulfill, since the applicant must:

Learn Vietnamese;
Prove knowledge of the history of the country;
Have an idea of the traditions of the new homeland.

The procedure for obtaining Vietnamese citizenship is extremely difficult, and a foreigner can obtain a passport only with the personal approval of the head of government.

The methods by which you can change citizenship are divided into 2 groups:

Automatic;
Non-automatic.

Children who:

Found in the country;
Born to stateless parents who reside permanently in Vietnam;
Born of a person who has the citizenship of the country;
Born from the Vietnamese in every corner of the world.

Other foreigners need to obtain citizenship through the fulfillment of a number of conditions:

Live in the country for more than 5 years;
Visit migration services regularly;
Comply with all laws;
Learn the language and history of the state;
Renounce your existing citizenship.

Foreigners rarely seek to obtain Vietnamese citizenship, since a residence permit in the country is enough to conduct a normal life and business.

Buying a ready-made business and starting from scratch

These types of entrepreneurial activities are in demand among Russians.

Buying a business

For many Vietnamese, this is a great way to make money. They often sell the business at the initial stage, immediately after the registration of the company. Legally, the process is expressed in the change of the Vietnamese founder to a foreign one.

Some subtleties:

It is not entirely reasonable to conduct a transaction without the accompaniment of a large law firm, as this increases the chances of meeting with scammers;
The legal company must provide potential clients with a license to conduct such cases, otherwise the transaction may be invalidated;
Before buying a business, a thorough check of all permits and its condition is required, since the absence of insignificant paper will cause long bureaucratic delays in the affairs of the already new owner;
Selling a business is allowed not only to Vietnamese, but also to foreigners.

Business creation from scratch

It is important for aspiring entrepreneurs to consider that:

For each type of activity, you will need to obtain a license;
The choice of activity should take place after a thorough study of the market;
The opening of a company will have to be done with the help of a law firm;
A good accountant is extremely important for Vietnam, as the payment of taxes is closely monitored by the state;
Each employee must obtain a separate permit, so the easiest way to run a family business (family members working in the company must be included in its co-founders).

Our compatriots believe that the main difficulty in doing business is the tax burden. In some cases, it "eats" up to 40% from the profit.

What business options in Vietnam are most common among Russian immigrants

Most often, our compatriots open catering establishments: restaurants, cafes, canteens. For success, it is important to take into account the flavor and demand for the service. Naturally, Russian tourists with great pleasure visit cheburek, dumplings and cafes with well-known "home" cuisine.

But you shouldn't expect big profits from such a business:

If you have experience, you can go to zero in 1 year;
The second year, as practice shows, is decisive - entrepreneurs go into negative territory or remain at zero;
In the third year, those who managed to hold out at zero begin to make a profit - you can navigate at $ 2,000 a year.

The production of furniture and bamboo is an extremely profitable business that is in demand among Russians. But it is available only to entrepreneurs with experience in this area. In this case, already for 2 years, you can go to an insignificant, but a plus.

The sphere of services, namely hotels and hostels, attracts Russian businessmen. Although it will be very difficult to promote such a business in Vietnam:

High competition;
Confusing tax base;
High cost.

With daily hard work and the presence of a drop of luck, the entrepreneur will be able to go to zero by the third year. In the future, the profit may be from 3000 to 15000 dollars in year.

Business ideas with minimal investment

If the migrant does not even have 10,000 dollarsthen he may try to enter small business in Vietnam.

You can try your hand in the following industries:

Internet cafe - such establishments are extremely popular, and their promotion requires only a creative idea for design and interesting offers for clients;
Web design - there are practically no own good specialists in Vietnam in this area, therefore there is a high demand for companies providing such services;
Marketing research - in this type of activity it is quite possible to make a name and fortune for yourself.

Several real-life examples

Our compatriots, who managed to survive and develop their business in Vietnam, write about it a lot and willingly. For example, here is the opinion of Smitson, who has lived in the country for over 7 years: “I thought I was in heaven when I moved to Vietnam. But ... I literally had to plow.

I started by selling souvenirs - just reselling them to tourists. Over time, we managed to open a small production, and now I, together with my brother, own a company that successfully supplies its products to several countries of the world. "

One of our compatriots, Andrey, had a difficult time after moving from Vladivostok: “I closed an advertising company and, together with 5 employees, came to Vietnam to open a cafe. What happened?

Much: we lost money, we were deceived more than once, we changed the profile of our work and, finally, after 3 years of hellish work, we made a profit! Now we are successfully combining the formats of an ordinary establishment with an Internet cafe and we believe that a great future awaits us! "

Legal nuances

Legal literacy is the basis of a successful entrepreneurial activity.

Business registration: forms of ownership and stages

Foreigners have the right to open in Vietnam:

Limited Liability Company - ideal for small and medium-sized businesses, since this form has a simple structure, and members of the company can have a different percentage of shares;
Open joint stock company - in Vietnam this form is typical for medium and large business;
Branch - investors are thinking about opening such companies, since they are not interested in opening a new legal entity;
Representation - this form will not allow you to receive income, but it will give you the opportunity to establish business ties.

Setting up your own business is divided into several stages:

Search for a law firm that will take care of all the intricacies of Vietnamese law;
Decide on the amount of start-up capital - there are no strict requirements for it in Vietnam, but the most optimal amount will be $ 10,000;
Submission of an application for opening a company to the Planning and Investment Department, indicating the name;
Assigning an individual number and entering it into the database of the General Department of Taxation;
Obtaining a certificate;
Print order;
Bank account opening;
Purchase of invoices from the Department of Municipal Taxation;
Posting a registration message on the National Enterprise Registration Portal;
Payment of tax for the entire first year;
Contribution of the amount of the authorized capital to the Planning and Investment Department (the deadline is set at 3 months after the opening of the company;
Staff registration at the local employment office;
Adding employees to the base of the Social Insurance Fund to pay for medical and social insurance.

Taxation

Vietnam's main tax burden includes:

VAT (3 options - 0%, 5%, 10%);
SPN (special consumption tax - from 10% to 75%);
Income tax (on average 22%).

Tax breaks are provided for certain categories of business:

Entrepreneurs in the field of educational and medical services, as well as publishers are exempted from VAT;
In the areas of software production, education, healthcare, a reduced income tax rate is provided - 10%.

Other nuances

Companies with 100% foreign capital is registered up to six months;
Firms, where part of the capital belongs to a Vietnamese, will be open during the working week;
You need to pay for starting a business 15-20 million dong;
The courts never take the side of a foreigner, therefore, businessmen need to pay special attention to legal intricacies in the conduct of business.

Tips for Vietnamese Business Immigrants and Examples of Failed Business Attempts

Unsuccessful examples of entrepreneurial activity can cool the ardor of migrants, but it is recommended to take into account the experience of such businessmen.

Not so long ago, a café owned by Russians was closed in Nha Trang. The establishment lasted 2 years, but in the end the family gave up trying to do business. They see it as their initial mistake to rely on Russian employees. They were brought from Russia, and the owners had to maintain a consistently high level of wages for Vietnam.

Corruption in Vietnam is also underestimated by many Russians. Bribery is common here. Without additional money, officials are able to delay the opening of a company for a year. A migrant from Novosibirsk faced this.

His company opened 10 months, during which he had to spend most of the money set aside for the business. Now his idea of opening a language school is in jeopardy.

Experienced businessmen give beginners simple tips:

Do not skimp on a professional translator when registering a company;
Do not trust the smiles of the Vietnamese and the word "yes" - for the locals it means nothing;
Be careful - gullibility abroad is very expensive;
Do not count on quick super profits - Vietnam belongs to poor countries and large incomes are rare here.

Opening a successful business in a foreign country is difficult and costly. Vietnam welcomes foreign investors with open arms, but does not guarantee them an easy path.

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