An LLC is a legal entity that could be formed by one or more owners who put funds into the company.
Single-member LLC is defined as an enterprise which is owned by an individual. This individual is solely responsible for the company’s debts, obligations and charter capital. Charter capital is the total value of assets contributed by the owner.
A multi-member LLC that is 100% owned by foreign investors is required to have 3 billion VND as paid-up capital. Meanwhile, a multi-member LLC that is partially owned by foreigners are required to allocate 30% of their funds as the initial capital.
A joint-stock company is defined as a legal entity which is founded by at least three shareholders. In this case, they can either be individuals or organizations which hold equal quantities of shares. As joint-owners, they are each responsible for the company’s debts and liabilities in accordance with the amount of funds they put into the company.
A representative office is an office established by foreign companies in order to conduct marketing and other non-financial activities in Vietnam. It is only permitted to do liaison work, market research, or business promotions. A representative office is not allowed to generate revenue and create invoices.
A branch office is a dependent unit of a foreign company in Vietnam. Compared to other types, a branch is more limited, operating mainly in the banking and legal sector. A branch office is allowed to generate revenue in Vietnam.