How to open an offshore company in Vietnam 2021

The stable political situation, developed legislation, tax benefits, and the third largest market in Southeast Asia - all these make Vietnam attractive for offshore company registration in 2021.

Vietnam's advantages for business

The country has managed to prove political and economic stability, so many businesses are moving manufacturing operations from China to Vietnam. Low labor costs have played an important role in attracting investment.

Offshore Vietnam 2021 has another advantage - the Council of Europe removed Vietnam from the "gray" list of offshore zones in 2020, having evaluated the reforms implemented. The country has signed many agreements on avoiding double taxation and has a free trade agreement with the EU.

About taxes

Transactions that take place outside of Vietnam are subject to a 0% rate. These include exports, investment of foreign companies, lending abroad, etc. Import/export taxes range from 0-100%, which depends on the existence of trade agreements. If there are none, the rate reaches the maximum level.

The government offers various benefits and incentives for firms that operate in certain industries. The average corporate tax rate is 20%, but they reduce it for such firms, and it ranges from 10% to 17% in the first 10 to 15 years. The following are included on the list:

• health care development, education;
• organization of trainings, scientific research;
• export (50%) of products from industrial countries.

How to open an offshore company

To open an offshore company in Vietnam 2021, one must determine whether the shareholders will include local residents or a 100% foreign entity is planned.

The government will allow you to open a company on the condition that you will invest in Vietnam. Therefore, the next step is to prepare an investment project and obtain a certificate for it, which is also a certificate of business registration.

You need to prepare a list of directors/shareholders, open an account, register a legal address, rent an office, as well as collect documents for tax.

To register an offshore company in Vietnam 2021 you must:

• Application for Investment Company Registration Certificate (IRC);
• Application for Investment Company Registration Certificate (ERC);
• Creation and registration of the seal.
• Registration of tax code.

Opening an account in Vietnam

To open an account in Vietnam, you need to submit the following documents:

• A document from the tax office, which confirms the registration of the company.
• Passport and a copy of the head of the company.
• Visa, temporary resident / permanent resident card, work permit.
• Passport of accountant, if he/she is on the staff.
• Application form.
• The original stamp of the company.

After verifying the documents, the bank employee makes copies and provides the originals. The account is opened for a year; if it is necessary to close prematurely, you will have to pay a tax credit. The most popular banks are VietinBank, Vietcombank, BIDV, VIB, SHB, SCB, VPBank, and MBBank.