Establishing an enterprise is only the first step. In order for a company to commence business operations, it must complete additional legal procedures and meet other necessary requirements. In particular, for a foreign-invested enterprise (FDI), having a clear understanding of a detailed, transparent roadmap and strict compliance with legal regulations is a key foundation for stability and sustainable growth. In this article, experts from KMC will provide a detailed explanation of what a newly established company needs to do. This in-depth guidance for FDI enterprises helps foreign investors confidently launch their business in full legal compliance.
What should a newly established company do?
For a newly established FDI enterprise in Vietnam, after successfully completing business registration, the company is required to carry out necessary procedures, including: opening a bank account, engraving the company seal, displaying the company signboard, purchasing a digital signature, submitting initial tax declarations, paying the business license tax (license fee), and registering employees.
The detailed tasks are as follows:
Necessary legal procedures
Procedures to be carried out immediately after obtaining the Enterprise Registration Certificate:
- Company seal engraving: Create the corporate seal and publish its specimen on the National Business Registration Portal
- Bank account opening: Open a Direct Investment Capital Account (DICA) and a VND payment account
- Company signboard display: Install the company signboard at the head office
- Digital signature purchase: Register for a digital signature (token) for online submission of documents
Note: For projects requiring an Investment Registration Certificate (IRC), this procedure must be completed prior to applying for the Enterprise Registration Certificate (ERC).
Capital contribution and investment procedures
Capital contribution: The investor transfers capital from abroad into the Direct Investment Capital Account (DICA) within 90 days in accordance with the committed schedule
Capital account registration: Notify the bank regarding the capital transfer and inbound remittance of investment capital
Tax and accounting procedures
After completing legal procedures, the enterprise must finalize tax and accounting procedures to establish a solid tax–financial foundation, ensure smooth and transparent operations, and avoid future legal risks.
- Accounting method registration & electronic invoicing system setup: The enterprise must select an appropriate accounting regime (Circular 133 or Circular 200) and register for the issuance of electronic invoices with the tax authority before generating any revenue.
- Initial tax declaration: Submit the initial tax registration dossier to the directly managing tax authority
- Invoice issuance: Complete procedures for notifying the issuance of electronic invoices
- Business license tax payment: Depending on the incorporation timing, it is usually exempt in the first year but still requires declaration
- Tax registration and compliance: In addition to business license tax, the enterprise must comply with Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), and other applicable taxes (if any)
Building the organizational structure and labor force
What should a newly established company do? In addition to necessary legal procedures, building the organizational structure and workforce is a critical step to bring the enterprise into operation. Only when a complete human resource structure is in place can the company begin production and business activities.
Human resource and labor procedures include:
- Recruitment & labor contracts: Comply with Vietnam Labor Code when recruiting and signing labor contracts with employees. Review provisions related to salary, bonuses, insurance, and leave entitlements. Prepare visa / work permit applications for foreign employees (if any)
- Social insurance, unemployment insurance, and health insurance registration: This is a mandatory obligation of the employer. The enterprise must register participation and declare employees with the social insurance authority within 30 days from the date of signing the first labor contract.
- Internal regulations and company policies: Establish rules of conduct, salary and bonus policies, occupational safety regulations, and basic internal procedures. This ensures effective management and creates a professional working environment, which is especially important in a multicultural setting.
- Office premises and facilities preparation: Ensure the company headquarters meets requirements regarding safety, fire prevention and fighting (Fire Safety), and local regulatory conditions.
Initial business strategy and marketing planning
To operate effectively from the initial stage, the enterprise needs a clear orientation and a well-structured business and marketing strategy.
- Market and competitor analysis: Understand the target market in Vietnam, consumer behavior, and both direct and indirect competitors.
- Develop a detailed Business Plan: Include short-term and long-term objectives, product/service strategy, distribution channels, and financial projections.
- Establish initial marketing and communication plan: Define brand messaging, build a professional website, set up social media channels, and plan initial promotional activities.
Key risk mitigation considerations during the establishment and operation of an FDI enterprise
In addition to understanding what a newly established company needs to do, in order to avoid unnecessary risks and support sustainable business development, the following key considerations should be noted:
- Strict legal compliance: Regularly update changes in the Law on Enterprises, Law on Investment, Labor Law, and Tax Law. Any changes to company information (address, legal representative, charter capital, etc.) must be promptly notified to the relevant state authorities.
- Tight cash flow management: Ensure sufficient working capital, closely monitor revenues and expenditures, and avoid liquidity shortages during the early stage of operation.
- Complete and systematic record keeping: All invoices, contracts, tax reports, and financial statements must be properly stored in an organized manner, ready for future inspections or audits.
- Build brand and reputation from the very first transactions: Professionalism and reliability from the beginning help establish a solid foundation for long-term relationships with partners, customers, and regulatory authorities.
Professional company establishment services providing end-to-end support from initial procedures to legal compliance and subsequent requirements
Establishing and operating a new enterprise has never been simple, especially for FDI enterprises with foreign capital investment. As a smart investor, instead of independently researching what a newly established company needs to do, as well as legal requirements, conditions, and regulations for setting up a business in Vietnam, engaging a professional service provider to handle all procedures is the optimal solution.
A professional service provider with a highly specialized team and in-depth understanding of legal conditions and regulations on company establishment will ensure that the entire process—from business registration to legal completion—is carried out accurately and properly from the very beginning.
Therefore, if you are looking for a professional partner to support the establishment of an FDI enterprise in Vietnam, especially with end-to-end services from company incorporation to post-establishment procedures, please contact KMC.
KMC is a professional consulting firm specializing in providing expert solutions in HR, tax, accounting, and legal services for FDI enterprises, particularly Japanese-invested companies.
At KMC, we provide comprehensive support throughout the entire company establishment process and post-establishment procedures. We handle all legal, accounting, HR, labor, and investment-related requirements, enabling enterprises to quickly commence operations while ensuring full legal compliance and minimizing legal risks.
It is clear that establishing a company in a new market is never easy. However, with thorough preparation, a clear roadmap, and the support of professional consulting partners, FDI enterprises can lay a solid foundation from the very beginning.
For in-depth consultation from KMC experts, please contact our hotline: 081 489 4789.
