About New Business Formation Law in Da Nang, Vietnam
Starting a new business in Da Nang, Vietnam is governed by the national laws of Vietnam, particularly the Law on Enterprise 2014. Da Nang, being one of the key economic centers of the country, promotes foreign investment and enterprise formation. Business owners must register with the Department of Planning and Investment, who will then issue an Enterprise Registration Certificate. The rules for business conduct, including those for ownership, management, and profit distribution, are all laid out in the company charter.
Why You May Need a Lawyer
Legal representation is crucial in business formation because of the various procedures and legal considerations such as identifying the appropriate legal entity, drafting internal company agreements, legal compliances, labor laws, and acquiring necessary licensing. A knowledgeable lawyer helps you navigate through business incorporation procedures while ensuring your company meets all necessary legal requirements.
Local Laws Overview
Vietnam's business law favors limited liability companies, joint-stock companies, partnerships, and private enterprises. Intellectual property laws are also in full effect, allowing businesses to patent, trademark, and copyright their products or ideas. Importantly, upon receiving the Business Registration Certificate, the business must make an announcement on the National Business Registration Portal. Foreign investment laws may also affect your business, particularly if the company has foreign investors.
Frequently Asked Questions
1. How long does it usually take to start a business in Da Nang?
Typically, it can take up to 1-2 months to start a business in Da Nang, Vietnam. This timeframe may vary depending on the type and size of the business.
2. Can foreigners own 100% of a business in Vietnam?
Yes, Vietnam laws currently allow 100% foreign ownership in many types of businesses, but certain sectors have limits or require a mix of domestic and foreign ownership.
3. What's the corporate tax rate in Vietnam?
The standard corporate tax rate is 20%, but it can vary depending upon the industry and scale of the business. There are also various tax exemptions and incentives for specific sectors.
4. How many directors or shareholders does my company need?
For limited liability companies, there needs to be at least one member/shareholder. For joint-stock companies, at least three shareholders are required. Companies are required to have at least one legal representative who resides in Vietnam.
5. What are the common business entities in Vietnam?
The most common business entities in Vietnam are Limited Liability Companies, Joint-Stock Companies, and Partnerships.
Additional Resources
The Department of Planning and Investment, Da Nang is your primary source of information on business registration and operations. For investment-related information, refer to the Da Nang Investment Promotion Agency. The Ho Chi Minh City Law website provides valuable insights into legal considerations when starting a business in Vietnam.
Next Steps
If you require assistance with new business formation in Da Nang, Vietnam, it is recommended to consult with a legal professional specializing in this area. They can provide guidance on your legal obligations, necessary paperwork and submission processes to help ensure your business starts off on a sound legal footing. Don't hesitate to engage a lawyer as early as possible to avoid any potential legal issues down the line.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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