In order to take advantage of all the incentives from preferential investment laws, many foreign companies choose to set up legal entities in Vietnam. However, the procedure and process of setting up a legal entity in Vietnam are very complicated because it is a long process to get a response from the authorities and requires many legal documents. By understanding your company’s conditions, NNRoad with its local experts will design the best solution for you to shorten the processing time and simplify all legal procedures, which helps to set up your entity faster and in compliance with the law.
- Confirm the selection of a business entity type and shareholder structure.
- Advise with the initial capital amount, if applicable.
- Assist with the selection of entity Vietnamese name.
- Assist with translation of related documents ( for foreign language materials).
- Assist with Business Registration Certificate / Enterprise Registration Certificate.
- Apply for company seal.
- Publish the registration contents on the National Business Registration Portal.
- Assist with bank account opening.
- Assist with the completion of business registration with the local tax authority (tax registration).
- Assist with sub-licenses, if applicable.
- Assist with product registration, if applicable.
Employer of Record or Employee Leasing in Vietnam becomes more and more popular for small and medium-sized businesses. Hiring staff in Vietnam by using the Employer of Record solution gives you a higher level of flexibility than setting up a new foreign-owned legal entity. Employer of Record employment provides an easier way for you to scale up and down before finalizing your commitment to investment in this market.
- Engaging employees through local labor contracts including contract administration, engagement, extension termination and conversion to a permanent hire.
- On-boarding and off-boarding employees following local practice.
- Registration of employees with social security board and paying all legally required taxes and social contributions for employees.
- Complete payroll solution and mandatory benefit administration.
- Employee management according to local laws, including employee record, timekeeping, bonus and allowance management, expense and claims, and leave employee database management.
- Payment management, including invoicing customers/clients and salary payment.
Most companies in Vietnam usually outsource their payroll because of two reasons. The first reason is because of cost-effectiveness. Instead of having an HR department, NNRoad will act as the HR department of your company by offering customized solutions for your payroll needs. We will take care of all payroll and HR-related services. In this situation, you only need to collaborate with NNRoad instead of setting up the whole HR department. Second, we have local experts who have many years of experience working in this field to support your company to make sure your company follows Vietnamese labor laws and regulations to avoid costly penalties.
- Registering the necessary company and personnel information for payroll calculation in the payroll software and system.
- Calculation of gross salary, salary deductions (e.g. statutory benefit deductions, unpaid leaves, etc.), and net salary based on information provided by the Company including irregular payments such as incentive/bonus, commission, allowance, severance, retirement payment, etc.
- Providing a monthly payroll summary to the Company.
- Expense claim validation and calculation.
- Payroll disbursement – Issue payment notice to the Company for payroll distribution to employees and employee’s expense claim; release e-payslip to employees and disburse salary to employee’s account.
- Prepare annual payroll related reconciliation report.
The standards and policies of the Vietnamese accounting system have constantly changed. Without experience and high skilled accountants and CPA, it will be both time and cost consuming for your company to set up a qualified accounting workforce who can handle all accounting tasks that are following all updated standards and policies. NNRoad with its local experience and skilled accounts will provide a complete range of financial, accounting, reporting services.
- Setting up a suitable chart of accounts and workflow systems.
- Monthly accounts and reporting.
- Year-end financial statements in compliance with Vietnamese Standards of Accounting.
- Year-end financial statements in compliance with International Accounting Standards (IAS).
- Withholding Tax returns.
- Corporation Tax Compliance.