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Registration of a Limited Liability Company (Joint Ventures)

If necessary, a foreign investor can incorporate a Limited Liability Company (LLC) with partial foreign-owned capital, as a joint venture between domestic Vietnamese and foreign investors.

Usually, the joint venture LLC must meet the Government requirement for foreigners to do business in restricted industries.  The percentage of foreign ownership of the LLC is subject to a maximum level, which depends on the business activities and is subject to Government approval.

Joint Venture LLC may also be requested by some foreign investors in order to take advantage of the specialist local knowledge of their Vietnamese partner.

A Joint Venture LLC can be established with a minimum of one foreign member, and one Vietnamese member; in both cases, the member can be an individual or a corporate entity. The number of members cannot exceed 50.  The management structure of a joint venture LLC is the same as for the foreign owned LLC considered above, that is a Members' Council, with a director or general director. An LLC cannot issue company shares to the public or otherwise. Members are responsible for the debts and other liabilities of the LLC to the extent of their capital contribution to the LLC company. In addition, an LLC is required to have at least one legal representative who is the primary representative of the company. The Legal Representative must serve as either the General Director or as the Chairman of the Members' Council and must be resident in Vietnam whether a foreign national or Vietnamese.  

Should you require any further information or have any inquiries, please do not hesitate to contact us.