How to register a company in Vietnam: A guide for employers

Expand in Vietnam: Asia’s rising manufacturing hub.

Vietnam’s ascent as a Southeast Asian powerhouse is undeniable. Fueled by record-breaking $22.4 billion FDI (2023) and GDP growth consistently eclipsing regional averages, its momentum is palpable. This nation is fast emerging as a strategic business hub—shaping global markets with competitive costs and a young, dynamic workforce.

This guide will walk you through the process of company registration in Vietnam, the associated costs, and why using an Employer of Record (EOR) can be a smarter alternative for hiring and growing teams here.

The business benefits of registering your company in Vietnam

With low taxes, strong trade agreements, and a strategic location, Vietnam is an excellent choice for global expansion.

The country provides businesses with:

• Access to ASEAN markets and preferential trade agreements.
• Competitive labor costs with a young, skilled workforce.
• Stable economic growth, averaging over 6% annually.
• Business-friendly investment laws encouraging foreign direct investment.
• Attractive corporate tax incentives in special economic zones.
• Growing digital economy, fostering innovation and tech startups.

But how can your company plan its expansion here? Let’s explore two options for market entry into Vietnam and what their differences can mean for your business.

Difference between standard company registration and expanding through an EOR

When setting up a business in Vietnam, you can register your own entity or partner with an EOR. Each option has its unique strengths and fits different needs. 

Here’s a breakdown:

Aspect	Standard company registration	Employer of Record (EOR)
Setup time	2–6 months	Immediate
Control	Full ownership & management	Operate under EOR framework
Compliance	Handles local laws, taxes, and filings	EOR manages all compliance
Payroll & HR	Requires in-house team	EOR provides full payroll & HR support
Costs	Share capital, registration fees, ongoing tax, compliance, and legal costs	No incorporation costs are necessary. A fixed, predictable monthly fee covers all compliance and consultation costs.
Scalability	Slow, you have higher legal responsibilities and commitments	Easily scale teams without setting up a local entity

Both approaches cater to different operational goals and levels of control. While standard registration gives you full ownership and authority, an EOR simplifies entry by enabling businesses to begin operations without company registration. It also manages many administrative tasks associated with hiring, onboarding, payroll, and offboarding.

How an EOR simplifies your Vietnam expansion

Establishing your business in Vietnam can be exciting, but setting up a legal entity increases your business complexity and risks. That’s where an Employer of Record (EOR) steps in. An EOR helps begin operations quickly. You can hire local talent without setting up a legal entity.

It makes entering the Vietnamese market faster, simpler, and less expensive.

Here’s how:

• Launch operations instantly—no need for company registration
• Focus on growing your business while leaving employment-related paperwork and compliance with the EOR. The EOR ensures adherence to Vietnam’s labor laws, taxes, and reporting requirements.
• Add employees whenever you need, without worrying about long-term commitments.
• The EOR helps you tailor compliant and competitive benefits packages specifically for your Vietnam workforce.

An EOR makes it easy to enter the Vietnamese market without the stress of legal processes and compliance hurdles. It’s the quickest way to focus on growing your team and reaching your goals in Vietnam.

However, if your company needs full operational control, sector-specific licensing, or direct financial and contract management in Vietnam, you must register your company here. In the next section, we outline how.

A step-by-step guide to registering a company in Vietnam

Registering a company in Vietnam is essential for long-term growth and compliance in regulated industries.

Here is a step-by-step overview of the registration process

Step 1: Choose a business structure

Select the legal entity that best suits your business model:

• Limited Liability Company (LLC): Common for foreign investors, requires at least one member. 
• Joint-Stock Company (JSC): Suitable for larger businesses, requires a minimum of three shareholders.
• Representative Office: Ideal for market research; cannot generate revenue in Vietnam. 

Step 2: Obtain an investment registration certificate (IRC)

• Required for foreign-invested companies.
• Apply through the Department of Planning and Investment (DPI).
• Processing time: 15-30 days.

Step 3: Register the business and obtain an enterprise registration certificate (ERC)

• Submit the company charter, owner details, and office lease agreement.
• Apply via the National Business Registration Portal or at DPI.
• Processing time: 3-7 working days.

Step 4: Apply for a business license (if applicable)

• Retail, education, and healthcare sectors require additional permits.
• Industry-specific licenses may take up to 30 days to process.

Step 5: Register for taxes and social insurance

• Obtain a Tax Code & VAT Number from the General Department of Taxation. 
• Register employees with Vietnam Social Insurance (VSI).

Step 6: Open a corporate bank account

• Required for capital contribution and business transactions.
• Common banks: Vietcombank, BIDV, Techcombank.

Step 7: Maintain compliance & annual reporting

• Submit financial statements and tax filings annually.
• Renew business licenses and pay government fees.

Company registration in Vietnam requires multiple legal and administrative steps, and costs you time and money An Employer of Record (EOR) legally hires employees on your behalf and is completely responsible for adhering to labor laws and taxes. It allows you to focus on your core business and significantly reduces expenses when registering your business in Vietnam.

The real cost of registering a business in Vietnam

Understanding the financial aspects of company registration in Vietnam is critical for effective planning and resource allocation. Costs can vary based on the business structure, required licenses, and operational needs. 

Below is a breakdown of the key cost categories involved in registering a business in Vietnam and how an Employer of Record (EOR) offers a streamlined and cost-effective alternative.

Understanding costs upfront is key to effective budgeting.

Expenses depend on the business structure, required licenses, and operational needs.

1. Registration costs

• Investment registration certificate (IRC): $100 – $150
• Enterprise registration certificate (ERC): $50 – $100
• Notary & legal fees: $500 – $1,500

2. Share capital requirements

• LLC: No official minimum, but $10,000+ is recommended
• JSC: No official minimum, but $50,000+ is recommended (depends on your industry)

3. Annual maintenance costs

• Accounting & auditing: $1,000 – $3,000/year
• Business license renewal: $50 – $200
• Tax compliance & reporting: $500 – $1,500

4. Payroll & tax contributions

• Corporate tax: 20% 
• VAT: 10%
• Social insurance contributions for employers: 21.5% 

An Employer of Record (EOR) reduces costs by managing payroll, compliance, and administration without requiring a local entity. With a predictable monthly fee, it eliminates upfront expenses and simplifies operations.

Cost comparison: Standard registration vs. EOR

Let’s compare standard company registration and EOR to find the best fit for your Vietnam expansion.

Cost category	Standard registration	Employer of Record (EOR)
Setup fees	$1,500 – $3,000	No setup fees
Compliance costs	Ongoing legal & tax filings	Fully managed
Payroll & HR	Self-managed	Handled by EOR
Time to market	4-6 weeks	Immediate

Note: These costs are estimates and may vary based on your business model, industry, and location. To get a clearer estimate tailored to your expansion plans, talk to our experts at Multiplier.

Take the stress out of your Vietnam expansion with Multiplier

Traditional registration involves upfront investments and ongoing administrative management, making it a better fit for long-term, large-scale operations. In contrast, an EOR offers a more streamlined, cost-effective alternative.

With predictable fees covering compliance, payroll, and other operational needs, an EOR like Multiplier is ideal for businesses looking for an efficient and scalable market entry solution in Vietnam.

Here’s how Multiplier reduces risks, increases flexibility, and accelerates your business growth:

✔️Local hiring expertise
We handle employment contracts, onboarding, and local HR compliance so you can build your team without red tape.

✔️Effortless payroll management
Run payroll seamlessly with guaranteed accuracy, timely tax submissions, and compliance with Vietnamese labor laws.

✔️Comprehensive HR platform
Manage everything in one place—from onboarding and expense claims to leave tracking and employee records.

✔️Full compliance, zero hassle
Stay worry-free with our deep knowledge of local tax codes, employment regulations, and statutory reporting.

✔️Tailored benefits packages
Attract top talent with competitive, locally optimized benefits—all administered by our platform.

✔️Reliable support & security
Get expert support when you need it, backed by enterprise-grade security and data protection standards.

Book a demo today and simplify your Vietnam expansion with Multiplier.