Key Differences in the ERC Process by Business Type
🔹 100% Foreign-Owned Companies & Joint Ventures
🏛 Additional Step: Obtain an Investment Registration Certificate (IRC)
Foreign investors must apply for an IRC before applying for an ERC, whereas domestic companies only require an ERC.
The IRC application is submitted to the Department of Finance (DOF) (for projects under VND 50 billion) or the Ministry of Finance (MOF) (for large-scale or conditional sectors).
Processing time for IRC: 10 – 15 working days, longer if the project falls under restricted sectors.
📌 Summary of Differences
| Business Type | IRC Required Before ERC? | Licensing Authority | |
|---|---|---|---|
| Single-member LLC (domestic) | ❌ No | DOF of the province/city | |
| Single-member LLC (foreign-owned) | ✅ Yes | DOF (small projects), MOF (large projects) | |
| Multi-member LLC | ✅ If foreign investors are involved | DOF | |
| Joint-stock company | ✅ If foreign investors are involved | DOF | |
| Joint venture | ✅ Required | DOF | |
| Representative office | ❌ No | DOF or Ministry of Industry and Trade |
3. Important Considerations
📌 Conditional Business Sectors: Some industries, such as banking, education, healthcare, telecommunications, and retail, require additional licenses before operation.
📌 Actual Processing Time: Delays may occur if additional verification or document modifications are required.
📌 Legal Assistance: Foreign investors often hire law firms or consulting agencies to streamline the process.
The tax rates applicable to each type of enterprise for foreign investors in Vietnam depend on the types of taxes the business is required to pay. Therefore, to choose the appropriate business model, you should consult a tax advisor.
Currently, Win Win Auditing Co., Ltd. (established in 2010) is a member of WinWin Holdings and is a well-known tax consulting firm in the Binh Duong area. If you need further consultation on business tax matters, please click the link below.
Applicable Tax Rates for Different Types of Foreign-Invested Enterprises in Vietnam
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