When starting a business, one of the most important factors to consider is the cost to set up a company. This article provides an overview of the necessary expenses involved in the process, from registration fees to other associated costs. Let’s explore the expenses businesses must cover when starting operations with FTA Law.
1. How Much is the Company Registration Fee?
The company registration fee is a mandatory charge when submitting a company registration application. According to Circular 47/2019/TT-BTC, this fee is set at 50,000 VND per instance. It applies to new registrations, re-issuances, or modifications to the business registration certificate.
This means that whether you are registering your company for the first time or making changes to your business license, you must pay this fee. However, if you register online, you are exempt from the registration fee under Article 4 of Circular 47/2019/TT-BTC. This not only helps save costs but also reduces the time and paperwork required for business registration.
2. Business Registration Announcement Fee
The business registration announcement fee is a small yet essential cost when setting up a company. As per Circular 47/2019/TT-BTC, this fee is 100,000 VND per instance.
After receiving a business registration certificate, companies must publicly announce their company information on the National Business Registration Portal. This must be completed within 30 days from the date of issuance. Publishing this information ensures business transparency for the public and regulatory agencies.
3. Cost of Engraving Company Seal
The cost of engraving a company seal is another essential expense when setting up a company. Depending on the type of seal required, costs range from 200,000 VND to 500,000 VND for a standard round seal or from 80,000 VND to 150,000 VND for personal title seals (e.g., director, chief accountant).
Once the seal is engraved, businesses must notify the National Business Registration Portal before officially using it in transactions and contracts. This ensures the legal validity and recognition of the company seal by authorities.
4. Cost of Purchasing a Digital Signature for Tax Filing
A digital signature is essential for electronic transactions, such as tax filings and document signing. The cost of obtaining a tax-filing digital signature ranges from 1,600,000 VND (for one year) to 2,700,000 VND (for three years).
Issued in the form of an encrypted USB device, a digital signature replaces manual signatures and company seals in legal transactions. Using a digital signature not only saves time but also ensures security and legality in electronic business dealings.
5. Cost of Opening a Business Bank Account
Opening a business bank account is a crucial step to set up a company in Vietnam. Most banks do not charge account opening fees but may require a small deposit, typically 1,000,000 VND, which is refundable when the account is closed.
To open a business bank account, you need to provide documents such as a notarized copy of the legal representative’s ID card, the business registration certificate, and additional paperwork as required by the bank. A business bank account is essential for handling financial transactions and tax payments.
6. Cost of Purchasing and Issuing Electronic Invoices
According to Decree 123/2020/ND-CP, from July 1, 2022, businesses must use electronic invoices for transactions. The cost of purchasing and issuing electronic invoices ranges from 935,000 VND to 2,000,000 VND, depending on the number of invoices registered.
Electronic invoices help businesses save printing and storage costs while enhancing transaction accuracy and transparency. They also streamline tax reporting and electronic tax submissions.
7. Business License Fee
The business license fee is an annual charge based on a company’s registered capital. The rates are as follows:
- Capital over 10 billion VND: 3,000,000 VND per year.
- Capital under 10 billion VND: 2,000,000 VND per year.
Businesses established in 2021 were exempt from the first-year license fee under Decree No. 22/2020/ND-CP.
8. Summary of Company Setup Costs
Below is a summary of the essential costs to set up a company:
| Expense Type | Cost (VND) |
|---|---|
| Business Registration Fee | 50,000 VND |
| Business Registration Announcement Fee | 100,000 VND |
| Company Seal Engraving | 200,000 – 500,000 VND |
| Digital Signature for Tax Filing | 1,600,000 – 2,700,000 vnd |
| Business Bank Account Opening | 1,000,000 VND deposit |
| Electronic Invoice Purchase & Issuance | 935,000 – 2,000,000 VND |
| Business License Fee | 2,000,000 – 3,000,000 VND |
Figures: Types of business startup costs at Vietnam you need to know
9. Additional Costs When Setting Up a Company
After setting up a company, businesses may incur additional expenses related to office setup and marketing. These may include:
- Company signboard design and printing: Costs range from 300,000 VND to 1,500,000 VND, depending on materials and size.
- Office rental: Costs vary significantly depending on location and office size.
- Office equipment setup: Includes purchasing office furniture, computers, and other necessary equipment.
Figures: There will be many additional costs when setting up a business.
10. Frequently Asked Questions About Company Setup Costs
10.1 What Are Business Maintenance Costs?
Business maintenance costs include expenses related to operations, such as employee salaries, advertising, product development, and staff training.
10.2 How Much Does It Cost to Set Up a Single-Member LLC?
The cost to set up a single-member LLC is approximately 1,000,000 VND, covering registration fees, seal engraving, and other essential costs.
11. Conclusion
Understanding and preparing for the costs to set up a company is essential for ensuring compliance with legal requirements, optimizing resources, and minimizing financial risks. Proper planning will help you launch your company smoothly and lay a solid foundation for long-term growth and sustainability. If you need assistance in calculating and completing business registration procedures, FTA Law is ready to support you with professional services and legal consultation.
Note: The information provided is for reference only and does not constitute official legal advice from FTA Law. If you require guidance for a specific case, please contact us at support@ftalaw.vn—we are always ready to assist you.