HOW TO OPEN A TRADING COMPANY IN VIETNAM

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What You Need To Know To Do Trading In Vietnam

A trading company is an excellent choice for businesses that want to import and export as well as distribute products domestically.
A trading company allows a company to participate in the e-commerce business, wholesale and retailing business, and other commercial activities relating to the buying-selling process.
The Laws of Vietnam do not set the minimum capital requirement for Trading business, it means the investors has the freedom to decide on this matter and can go as low as USD 10,000-$15,000 as the capital for a Trading Company

Why should you open a Trading company in Vietnam?

The most common method used by businesses wishing to engage in import and export activities as well as domestic distribution (i.e., retail, wholesale, and franchising trade activities) in Vietnam is to establish a trading company.

A trading company in general is easy and inexpensive to establish. It takes roughly 30-45 days to incorporate a Trading company in Vietnam with minimal conditions. The business belongs to Vietnam’s WTO commitment and allows 100% foreign ownership.

Trading companies are also an excellent choice for foreign companies that need to source goods in Vietnam for resale in other countries or the other way around. Without a Vietnamese trading company, the only option would be to buy from overseas and have the goods shipped out of Vietnam before reselling them back into Vietnam through local distributors (which would mean additional logistical costs, customs duties, importer of record fees, and VAT).

What do you need to establish a trading company in Vietnam?

As mentioned above, a Trading company registration requires minimal conditions which every business must meet to be registered:

Having a business address (can use a virtual office address)
Have a person in Vietnam be the resident legal representative of the company (at the registration step)
Decide on the capital investment

From the Investor’s side, the following documents will be required:

If Individual ownership: Passport (notarized copy) + Bank statement in the last 3 months
Corporate ownership: Legalized documents of the company overseas (business licenses, Company charter, Articles of Association, Financial statement, or Bank statement in the last 3 months).

The legalization is required for Corporate ownership cases, this process can be done at the Vietnamese embassy overseas. It can take weeks or months, depending on the situation in each country.

Steps to register a trading company in Vietnam?

A 100% foreign-owned trading company in Vietnam will go through 02 major steps:

Obtain the Investment Registration Certificate (IRC)
Obtain the Business Registration Certificate (BRC) or ERC
Make the company’s seal/stamp
Open the company’s bank account
Inject the committed capital into the company’s bank account
Register Tax account and E-invoice account

The whole process takes 4-6 weeks or 30-45 days to complete.

Opening trading company with Retailing function in Vietnam?

Once a Trading company is opened, it can immediately do import/export and wholesale business (B2B model). If the company wants to do Retailing business, it must obtain an additional license that allows Retailing function of the business.

The Retailing license comes in a few types and forms. For retailing on a website, the company needs to obtain a Trading/Retailing license for each product that is sold to the end-user.

If the business involves a retailing outlet, showroom, each outlet or showroom must also obtain a license for itself.

Can I open a trading company in Vietnam without being here?

Yes, you can.

A business can be opened remotely and run remotely, as long as the conditions for business are met.

A trading business can be opened if the requirements of Business Address, Resident Legal Representative are Capital are satisfied. The first two conditions can be arranged, the third condition is proven via bank statements or financial statements.

Open a Trading company easily with VNBG

At VNBG, we have helped incorporate thousands of businesses remotely and help our clients run their businesses without being physically present in the country.

Contact us to understand more about the process, cost, and timeline to incorporate a Trading company (100% FDI). We are proud to be one of the most efficient and most cost-effective business solutions for the Vietnam market.