Vietnam's food trade industry is one of the most dynamic sectors in the country. Fueled by an expanding middle class, rising disposable incomes, and shifting consumer preferences, the increasing demand for high-quality food products is undeniable. From bustling markets in Ho Chi Minh City to modern supermarkets in other major cities, the opportunity for both […]
Vietnam's food trade industry is one of the most dynamic sectors in the country. Fueled by an expanding middle class, rising disposable incomes, and shifting consumer preferences, the increasing demand for high-quality food products is undeniable. From bustling markets in Ho Chi Minh City to modern supermarkets in other major cities, the opportunity for both […]
Nghiên cứu thị trường toàn diện và hiệu quả là chìa khóa giúp kế hoạch đầu tư vào Việt Nam thành công đối với doanh nghiệp nước ngoài. Để có được kết quả nghiên cứu thị trường đúng kỳ vọng, doanh nghiệp cần chuẩn bị kỹ thông tin, nguồn và mục tiêu rõ ràng của doanh nghiệp khi đầu tư vào Việt Nam. Dưới đây là một số bước cơ bản trước khi thực hiện nghiên cứu thị trường ở Việt Nam.
Bước 1: Nghiên cứu sơ bộ thị trường khi đầu tư vào Việt Nam
Trước khi thực hiện nghiên cứu thị trường, bạn phải nghiên cứu thị trường trước. Có cái nhìn tổng quan về thị trường trước khi tiến hành các bước thu thập dữ liệu. Bạn cần hiểu thị trường mới này hoạt động như thế nào, các sản phẩm tương tự sản phẩm của bạn đến từ đâu và hành vi mua hàng của khách hàng.
Khi đầu tư vào Việt Nam, trước khi tiến hành các buổi focus group hay bảng câu hỏi khảo sát, các doanh nghiệp cần cân nhắc tìm hiểu văn hóa, tình hình kinh tế ở một số ngành nhất định, tham khảo luật và quy định của chính phủ Việt Nam trước khi thực hiện những buổi nghiên cứu thị trường tốn kém. Doanh nghiệp cũng có thể tham khảo một số bảng khảo sát, báo cáo thị trường ngành sẵn có để có cái nhìn toàn diện, và xác định được mục tiêu tập trung ở đâu. Bước nghiên cứu thị trường ban đầu còn giúp doanh nghiệp nhận diện các đầu mục quan trọng, gạn lọc thông tin cũng như có kiến thức nền tảng trước khi bắt đầu thảo luận với các bên liên quan trong bước sau.
Ở giai đoạn này, doanh nghiệp có thể thu thập được thông tin thứ cấp càng nhiều càng tốt. Dữ liệu thứ cấp ít tốn kém và bằng cách sử dụng internet, nhóm chịu trách nhiệm có thể nghiên cứu, tìm kiếm dữ liệu Online.
Bước 2: Phát triển bảng câu hỏi nghiên cứu thị trường
Nếu doanh nghiệp cân nhắc nhập khẩu sản phẩm vào thị trường mới, cân nhắc các yếu tố sau trong bảng câu hỏi:
Quy mô thị trường tiềm năng thế nào?
Hiện có quốc gia nào tương tự đang sử dụng sản phẩm của doanh nghiệp?
Đối thủ cạnh tranh là ai? Đối thủ cạnh tranh bao gồm đối thủ cạnh tranh trong nước và các sản phẩm ngoại nhập khác. Thị phần của đối thủ trên thị trường là bao nhiêu?
Các tiêu chuẩn hoặc giấy chứng nhận bắt buộc đối với sản phẩm của doanh nghiệp là gì?
Sản phẩm của doanh nghiệp nên được giữ nguyên hay thay đổi mẫu mã, bao bì và thương hiệu khi gia nhập thị trường mới?
Những nghĩa vụ, thuế và các chi phí khác áp dụng? Chi phí vận chuyển và biên lợi nhuận như thế nào?
Chiến lược định giá cho sản phẩm ở thị trường mới
Kênh phân phối cho thị trường
Bước 3: Đa dạng hóa nguồn dữ liệu
Trong nghiên cứu thị trường, nguồn dữ liệu rất quan trọng. Ở bước này, doanh nghiệp cần tìm nguồn để hỗ trợ thu thập thông tin sơ cấp. Dữ liệu có được thông qua việc nghiên cứu và khảo sát thị trường nước ngoài. Các dữ liệu, thông tin liên quan trực tiếp, cụ thể đến sản phẩm của doanh nghiệp với mục tiêu cụ thể và dựa trên thông tin thứ cấp ở bước 1.
Nguyên tắc cơ bản trong nghiên cứu thị trường là không phụ thuộc vào một nguồn dữ liệu duy nhất. Doanh nghiệp cần một số nguồn thông tin để xác nhận độ tin cậy của dữ liệu của bạn. Đa số những nguồn thông tin có sẵn sẽ không đầy đủ và chỉ mang tính chất tham khảo. Doanh nghiệp muốn có một bảng nghiên cứu thị trường có thể tìm hiểu một số đơn vị cung cấp chuyên nghiệp trên thị trường. Cần tìm hiểu các đơn vị nghiên cứu thị trường uy tín hoặc có kinh nghiệm làm trong mảng kinh doanh của doanh nghiệp. Lưu ý luôn lựa chọn nhiều hơn 1 nguồn dữ liệu để đối chiếu vì dữ liệu dựa trên một mẫu có thể bị thiên lệch.
Bước 4: Phát triển bảng kế hoạch nghiên cứu thị trường khi đầu tư vào Việt Nam
Sau khi đã có đầy đủ thông tin sơ bộ, các nguồn cung cấp thông tin cần thiết, doanh nghiệp sẽ phải xây dựng bảng kế hoạch nghiên cứu thị trường hoàn chỉnh. Bảng kế hoạch cần có các bước thực hiện cụ thể, nguồn, đơn vị thực hiện, cách thực hiện, các dữ liệu cần thu thập, kết quả đầu ra mong muốn…
Một bảng kế hoạch rõ ràng giúp rà soát một lần nữa các bước tiến hành của cuộc khảo sát, và nắm lại rõ những kỳ vọng, kết quả mong muốn sau cuộc khảo sát.
Để nắm rõ thị trường và có thông tin khảo sát hiệu quả, các doanh nghiệp nước ngoài có thể sử dụng dịch vụ của công ty tư vấn. Các công ty tư vấn ở trong nước sẽ cung cấp đầy đủ thông tin theo yêu cầu một cách chính xác và tiết kiệm thời gian hơn. Viettonkin là đơn vị uy tín với kinh nghiệm tư vấn thành công cho hơn 22,00 dự án đầu tư, có dịch vụ hỗ trợ toàn diện các hoạt động nghiên cứu, khảo sát trước khi thâm nhập thị trường cho doanh nghiệp.
Labours’ salaries or wages must pay personal income tax (PIT) according to regulations. Accordingly, The law on personal income tax Vietnam is calculated as follows:
Tax law in Vietnam for resident labour
According to the law on personal income tax Vietnam, resident employees earning incomes from salaries and wages inside and outside Vietnam must pay PIT in accordance with the law:
In which, according to Article 2 of Law on Personal Income Tax 2007, resident worker is a person who meets one of the following conditions:
+ Being present in Vietnam for 183 days or more in a calendar year or counted for 12 consecutive months from the date of arrival in Vietnam;
+ Having a place of habitual residence in Vietnam, including a registered place of permanent residence or a house rented to live in Vietnam under a term lease.
The payable PIT amount of resident individuals is calculated as follows:
Labor contracts of 3 months or more according to tax law in Vietnam
Tax calculation formula
According to the tax law in Vietnam, PIT payable on income from salaries and wages is calculated on taxable income and tax rate, specifically as follows:
PIT payable = Taxable income x Tax rate
In which:
(1) Taxable income is determined as follows:
Taxable Income = Income subject to PIT - Deductions
+ Tax-exempt incomes are those from wages, night work or overtime paid higher than wages, daytime or overtime wages as prescribed by law. the law. (See details at Point i, Clause 1, Article 3 Circular 111/2013 / TT-BTC).
- The deductions include:
+ Family deductions:
++ For taxpayers: 11 million dong / month, 132 million dong / year.
++ For dependents: 4.4 million VND / person / month.
+ Insurance premiums and voluntary retirement funds under the guidance in Clause 2, Article 9 Circular 111/2013 / TT-BTC.
+ Charity, humanitarian and study promotion contributions under the guidance in Clause 3, Article 9 Circular 111/2013 / TT-BTC.
(2) PIT rate
Tax bracket
Taxable income per year (million VND)
Taxable income per month (million VND)
Tax (%)
1
Upto 60
Upto 5
5
2
Over 60 to 120
Over 5 to 10
10
3
Over 120 to 216
Over 10 to 18
15
4
Over 216 to 384
Over 18 to 32
20
5
Over 384 to 624
Over 32 to 52
25
6
Over 624 to 960
Over 52 to 80
30
7
Over 960
Over 80
35
PIT calculation method according to tax law in Vietnam
According to the tax law in Vietnam, PIT on income from salaries and wages is the total tax calculated by each income level. The tax amount calculated for each income level is equal to the taxed income of the income level multiplied (×) by the corresponding tax rate of that income level.
The progressive tax calculation method for each part is concretized according to the summary tax calculation table as follows:
Level
Taxable income per month (million VND)
Tax (%)
Tax payable
Formula 1
Formula 2
1
Upto 5
5
0 mil + 5% IBT
5% IBT
2
Over 5 to 10
10
0,25 mil + 10% IBT over 5 mil
10% IBT - 0,25 mil
3
Over 10 to 18
15
0,75 mil + 15% IBT over 10 mil
15% IBT - 0,75 mil
4
Over 18 to 32
20
1,95 IBT + 20% IBT over 18 mil
20% IBT - 1,65 mil
5
Over 32 to 52
25
4,75 IBT + 25% IBT over 32 mil
25% IBT - 3,25 mil
6
Over 52 to 80
30
9,75 IBT + 30% IBT over 52 mil
30% IBT - 5,85 mil
7
Over 80
35
18,15 IBT + 35% IBT over 80 mil
35% IBT - 9,85 mil
Non - labor contract or less than 3 months labor contract (Point i, Clause 1, Article 25 Circular 111/2013 / TT-BTC)
According to the tax law in Vietnam, organizations and individuals that pay wages, remuneration and other payments to resident individuals who do not sign labor contracts (under the guidance at Points c, d, Clause 2, Article 2 of Circular 113) or sign contracts The labor contract of less than three (03) months with a total income payment of two million (2,000,000) VND / time or more must deduct tax at the rate of 10% of the income before paying to the individual.
In which, wages, remuneration and other payments to individuals include:
- Commissions for goods sale agents, brokerage commissions; money for participation in scientific and technical research; money for participation in projects, schemes; royalties in accordance with the law on royalties; money for participation in teaching activities; money for participation in cultural, art, physical training and sports performance; money for advertising services; other service fees, other remuneration.
- Money received from participation in business associations, business boards of directors, enterprise control boards, project management boards, management boards, associations, professional associations and other organizations.
Thus, the PIT in this case will be calculated as follows:
Deductible PIT = Income taxable PIT x 10% tax rate
*Note: In case the individual has only income subject to tax withholding according to the above rate but estimated that his total taxable income after deduction of family circumstances has not reached the taxable level, he If you have income, you commit to send the income payer to the income payer as a temporary basis for PIT not to be deducted. Individuals making commitments under the guidance at this point must register tax and have tax code at the time of commitment.
Non-resident individuals (who do not meet the conditions to be identified as resident individuals specified in Article 2 of the 2007 Personal Income Tax Law) have income from salaries or wages arising in the territory. Vietnam must pay PIT according to regulations.
The PIT payable on income from salaries and wages of non-resident individuals is determined as follows:
PIT payable = Taxable Income x Tax rate of 20%
In which, taxable income from salaries and wages of non-resident individuals is determined as income subject to PIT from salaries and wages of resident individuals.
Above are some notable points in tax and payroll in Vietnam. We hope that this will give you a basic idea of the tax and salary regulations in Vietnam. If you have any difficulty, please do not hesitate to contact us via our contact!
Nowadays, many foreign investors want to set up new business in Vietnam. However, the cost of setting up is relatively high and there might be a lack of understanding local knowledge. Therefore, setting up a representative office in Vietnam, especially in the capital city, Ho Chi Minh City, will be the best solution, as it offers a low-cost entry for investors and can have a better understanding of Vietnam’s business climate. If you have a plan to establish a representative office in Ho Chi Minh City, you can read this article until its end. It provides you information about setting up a representative office in Ho Chi Minh City.
What Are Representative Office(s) Permitted To Do?
The option of setting up a representative office for foreign investors is common, as it is for first-time entrants to the Vietnamese market and precedes a larger presence within the country. In addition, it can save the cost entry for investors and know better about Vietnam’s business. Nonetheless, representative offices are forbidden to earn revenue and their activities are limited to mainly market research, plus acting as a liaison office for their parent companies.
There are things that representative offices are permitted to do. These are:
Conducting market research
Acting as a liaison office for its parent company.
Promoting the activities of its head office through meeting, and other activities, that leads to a business at later stages.
Representative offices are not allowed to generate their profits or enter directly into contracts, because they are dependent on their parent companies. Additionally, they are prohibited to issue invoices.
How To Get The License and What Should You Do After?
File an application for setting up an office with company chop or seal.
Appointment letter of Chief of Representative Office with identification documents and company seal.
Power of attorney in favor of consultant to submit the application dossier.
Certificate of Incorporation for the Company and/or Business Registration Certificate of the Company.
Audited financial report of the company for the latest fiscal year.
Memorandum of Understanding (MoU) of leasing office or leasing contract.
Documents providing legal rights of the landlord regarding the right of the leasing office.
Keep it in mind, for steps 1 to 6 the foreign entity would require one notarized and consularized copy of each document and a translated copy in Vietnamese by a Vietnamese competent authority. Plus, a signed leasing contract is required before registering a representative office in Vietnam.
After getting a license, you will need this post-licensing checklist for your next action. These are:
8. Make a seal for the representative office;
License on the establishment of a representative office.
Passport of Chief of representative office if a foreigner or passport/ID card Chief is Vietnamese.
9. Register a tax code;
Declaration to register a tax code.
Power of attorney
Certificate of seal registration
Certificate of a representative office in Vietnam
10. Open a bank account;
License on the establishment of a representative office.
Certificate of seal registration.
Certificate of tax code registration.
Letter of authorization appointing the authorized signatories of the bank accounts.
11. Announcement of the establishment the office of Company.
For steps 8 to 10, your documents need to be notarized and translated to complete the process. Do not forget about this or the process will take a little longer.
How Long Do You Need To Establish a Representative Office?
The representative office can be established between 6 to 8 weeks. We also recommend hiring a professional service to deal with the countless laws and procedures.
The absence of in-country revenue and associated licensing requirements have been given, so the setup process for this option does not involve as many bureaucratic procedures as others. A representative office is valid for 5 years, but can be extended for another 5 years.
Hiring, Tax, and Reporting
After getting the license and ready to establish an office in Ho Chi Minh City, you still need to consider something else, such as hiring, tax and reporting.
When setting up the office is done, you can hire the number of local and expatriate employees as long as their employment is properly documented. All expatriate hires including the chief representative are required to have a work permit. The offices can hire staff directly or use the assistance of recruiting agencies.
A representative office is not subject to Vietnamese Corporate Income Tax (CIT). However, it is responsible for declaring its employees’ Personal Income Tax (PIT). Determining payable tax, representative offices have to initiate a tax audit which checks all revenues and expenses during the tax term to establish grounds for declaring and paying tax.
In addition, the representative office has to send reports of its activities of the previous year to the Department of Industry and Trade before January 30 of each year.
The Tax Risks if Your Representative Office is Permanently Set Up
As mentioned above, the representative office is only permitted to do market research activities and act as a liaison office for its parent company. It cannot engage in commercial activities or support the parent company with its commercial activities in Vietnam.
A Permanent Establishment is described as per local laws as well as the Double Tax Avoidance (DTA) agreement between Vietnam and other countries. In general, the PE definition under a DTA is more necessary than domestic regulations.
If a foreign business wants to convert the office into a permanent establishment, but it has been carrying out activities per local laws, it could activate a licensing risk. Thus, foreign businesses should ensure that their representative office performs activities as per the DTA guidelines. However, if the representative office activity is outside the scope, it may be subject to additional tax in Vietnam.
To avoid any licensing or tax risks in case the office is treated as a permanent establishment, businesses are advised to restrain from getting their offices involved in buying and selling activities between two parties.
Therefore, foreign investors looking to establish a presence in Vietnam should use the services of registered local advisors who can ensure their setup process is accurate while complying with the relevant DTAs and local regulations.
In conclusion, establishing a representative office should be taken into account if you want to enter the foreign market that you have not experienced yet. Despite its low-cost, it can help you to discern the local knowledge about Vietnam’s business. Keep it in mind, if you are unsure or know nothing about the local regulations and laws, you can ask for our help. Viettonkin will always be ready to assist you anytime!
Setting up a Representative Office (RO) is one of the first steps in founding your company in this newly emerged Southeast Asian market. How to set - up a Representative Office in Vietnam, especially in this Covid - 19 situation? This article will provide a cutting - edge starter-pack on how you’re going to set - up your company’s Representative Office.
What is a Representative Office permitted to do and NOT to do ?
A Representative Office is enabled to engage in the following activities to help promoting its parent company:
Conducting market researches;
Playing as a contact point for its parent company;
Promoting the activities of its head office through meetings and other activities, that leads to business at later stages
Representative offices may not conduct any other profitable business. A RO does not have the right to sign a separate contract on its own. The parent company bears all financial obligations arising from the operations of the Representative Office, so the accounting of the RO is dependent on the enterprise.
Thus, in case of wanting to establish more dependent units only with the function of assisting the business to access customers and partners not performing business functions, you may consider establishing representative offices to avoid having to fulfill complicated tax obligations. In addition, for the service industries not directly implemented at the address of representative offices such as tourism, construction, consulting, etc., the form of setting up one in other provinces is a wise option.
In general, a Representative Office is allowed to perform almost all activities the parent company does except direct trading and profits generating, all types of contracts must be signed by the parent company or the Representative Office. It doesn’t have the authority to sign sale and purchase contracts, all invoices and trading documents must be returned to the head office.
What you need to set up a Representative Office ? (Latest update 2020)
Pre - license checklist for setting up a Representative Office
Application for establishment of representative offices of foreign companies in Vietnam;
The legalization of the consular and the public certificate of business registration or the equivalent valuable papers of foreign traders where the foreign trader' s establishment is established;
Written appointment of the parent company;
The notarized translation of the financial statement or the written certification of the fulfillment of the tax liability or financial liability in the latest fiscal year or the equivalent valuable paper issued by the competent agency or organization in the locality where the foreign trader is established or certified or proved;
A notarized copy of the ID card (for Vietnamese) or a copy of the passport (for foreigners) of the Chief representative;
Documents on the expected location, including:
Certified copying office contract;
The certificate of the land use right certificate of the lessor (if the enterprise is hired by the enterprise to provide additional business registration certificates);
In addition, the location of the representative office of the foreign company must conform to the provisions of Vietnamese law on security conditions, order and hygiene and other conditions as prescribed by law.
Note: the entire application dossier for shall be signed and stamped by the parent company. If the parent company in foreign countries has no marks, the whole dossier must be consular legalized.
Post – licenses check-list for establish representative office in Vietnam
Once submitting your application for license, you can start arranging staffs, taxes, annual reports. Apart from those, other basic operations of a representative office, including:
Foreign currency account and VND accounts with foreign currency origin at banks licensed to operate in Vietnam. Only use this account for RO activities;
Annually written report on its activities during the year to the Department of Industry and Trade;
Set up a cash fund to record all revenues and expenditures during the operation of the RO;
Apply for a work permit for the foreign worker at the RO (if any);
Signing labor contracts with the representative and the employees of the RO;
Annually certifying the salary and income for the chief representative and the operations of the representative office;
Pay personal income tax, representative's insurance and representative office employees (if any).
Note, when submitting all tax returns and tax receipts from state agencies. Plus, annual income tax finalization for the representative and the employees of the representative office;
Other duties in accordance with the current law;
What’s next ?
The Business Registration Office shall issue the RO operation registration certificate to your company. It usually takes 03 working days since receipt of a valid application.
Within 30 days after being granted the RO operation registration certificate, you should publish your RO operation registration information on the National Business Registration Portal.
How long does it take to establish representative office in Vietnam?
It can take from six to eight weeks in total, including getting a main license, operating license and stamp. We recommend hiring a professional service to deal with the laws and procedures.
Thanks to the absence of in-country revenue and associated licensing requirements, the setup process does not entail as many bureaucratic procedures as others.
A Representative Office license is valid for five years but can be extended for another five years.
To sum up, above are the very first guidelines to establish representative office in Vietnam. Once you get the basic principles of the Vietnamese RO establishing process, it can be much more simple. Our Viettonkin legal specialists are always ready to support you with any procedure, license and certification. If you come across any obstacle, feel free to contact us below. Viettonkin will always be ready to give you a helping hand !
Franchise is indeed a mainstream business worldwide, including Vietnam. It also has a long-term perspective in the country. Many popular foreign brands are attracted by the business expansion there, while the local Vietnamese investors are looking for the opportunity to operate the business under the well-known brands that Vietnamese are familiar with. Another fact to add, there are a lot of famous franchise brands in Vietnam, such as KFC, Lotteria, Pizza Hut, Burger King, McDonald’s, The Coffee Bean & Tea Leaf, 7-Eleven, and Baskin-Robbins.
Therefore, the government has been working to create a friendly environment to do franchise business by easing the franchise regulations and processes, expecting the business will grow even more significantly. This article will provide you in-depth information all related to franchise business and agreement in Vietnam.
Who Can Open a Franchise Business in Vietnam?
In August 2019, the total number of both local and foreign franchise businesses in Vietnam were recorded at 213.
Based on the franchising law in Vietnam, there are the eligibility criteria on who can open a franchise in the country:
Franchise business from a Vietnamese franchisor to a foreign franchisee.
Franchise business from a foreign franchisor to a Vietnamese franchisee.
A franchise agreement must be signed and registered. If the agreement does not exist and is not registered, both parties will be fined.
There are conditions that both franchisors and franchisees have to meet these criterias. For franchisors, the franchisor’s business must be in operation for a significant period, minimum of 1-year. In addition, the franchisor must obtain written approval from the Ministry of Industry and Trade.
On the other hand, the franchisee must register their business in relevant sectors with regard to their franchise business in Vietnam. For a master franchisee in Vietnam to sub-franchisee to another party when permitted by the franchisor, the master franchisee must also have been operating for at least 1-year before the sub-franchising is conducted.
How To Start a Franchise Business in Vietnam?
In accordance with Decree No. 8/2018/ND-CP, before individuals or organizations can start a franchise business, they must follow these requirements:
The franchise system must have been in operation for a minimum of one year.
A master franchisee in Vietnam must also have been operating for at least a year before there is any sub-franchise.
Products and services offered by the franchise business must not be on the list of prohibited products and services issued by the Vietnamese government. Here are the prohibited items list:
Weapons
Toxic minerals
Addictive drugs
Harmful and dangerous toys to children
Wild animals
Plants
Environment-polluting imported scarps
Marriage broker services
Organised gambling
Adoption broker services
Certain franchise products and services must have special business licenses.
The franchisor must register its franchise with the Vietnamese Ministry of Industry and Trade, then submit required documents such as its disclosure document and franchise agreement, except for the cases in which registration of commercial franchising is not required.
The franchisor must also submit an annual report and update of any franchisees’ changes to the Ministry of Industry and Trade.
You must prepare the following required documents to register your franchise business in Vietnam:
Franchise agreement
Power of attorney
Franchise registration application form
Audited reports from the previous year
Introduction of the franchisor
Business certificate of the franchisor
Trademark or copyright certificate
Approval or permission document from the primary franchisor.
There is one thing that you need to remember, when you are expanding to Vietnam as a franchisor, you need to register your trademark with the National Office of Intellectual Property of Vietnam in order to keep your brand safe.
If you want to know more about how to set up a franchise business in Vietnam, you can read here.
Franchise Agreement in Vietnam
A Franchise agreement is an important part when you want to start a franchise in Vietnam. Moreover, a franchise agreement in the country is a compulsory commercial agreement that is signed between a franchisor and a franchisee. However, this franchise agreement must be in Vietnamese language.
The agreement indicates that the franchisee can buy or sell goods and services on its own, as long as the purchase and sale of products and services are performed based on manners that is specified by the franchisor, such as trade names, trademarks, business logos, business slogans, and advertising.
It can be said that the franchisor has the right to assist the franchise or take charge of running the business.
Generally, a franchise agreement shall cover the commercial rights for franchise, also the rights and obligations of both the franchisee and the franchisor. In addition, the agreement will include how much the franchise is free along with the valid period and payment method, period of effectiveness of the agreement. Lastly, terms and conditions for contract extension or termination, and what to do when conflicts arise must be mentioned in the franchise agreement.
The franchise agreement can be renewed, but the law does not designate any conditions in terms of the contract or renewal of the contract. Nonetheless, this should be negotiated by the parties. For this reason, you should examine all agreements very carefully to avoid costly inconveniences in the future.
Taxes on Franchising in Vietnam
One thing that you should not forget is paying taxes on franchising in Vietnam. Even if you are a foreign contractor and do not register a company in Vietnam, but still collecting fees from the franchisees, therefore, you are subject up withholding tax on any fees collected, including:
Franchise fees
Royalties
Administrative fees
Advertising fees
Management fees
Foreign franchisors in Vietnam are also subject to the withholding taxes for services in the country, such as, Value-Added Tax (VAT) 5% and Corporate Income Tax (CIT) 5%. Conversely, domestic franchisors are subject to, Value-Added Tax (VAT) 10% and Corporate Income Tax (CIT) 20%.
The franchise business is still becoming a number one model to expand the market in Vietnam for foreign investors. However, understanding local knowledge is needed when entering the market, if you underestimate the power of local understanding, your business will not rise up like you expect.
In conclusion, a successful business incorporation in Vietnam cannot be separated from the understanding of local knowledge and regulations, as well as equipping with skills in drafting clear provisions, also discerning terms and conditions. If you need any help, do not hesitate to contact us, because Viettonkin will always be ready to assist you!
Indonesia is the largest archipelago and the fourth populous country in the world. It comprises 17.500 islands, also one of the world’s emerging markets. Meanwhile, there is a small city-state, Singapore is ranked the fourth richest country in the world by GDP per capita. In this article, you will be given knowledge about the comparison between Singapore and Indonesia for ease of doing business, with respect to areas such as business environment, workforce and taxation.
Indonesia is the 16th largest economy in the world and the largest economy in Southeast Asia. Additionally, Indonesia as a young democratic country has maintained political stability since emerging from decades of autocratic rule. The demand for infrastructure in Indonesia is sustained by both economic growth and urbanisation, while petroleum and minerals continue to make up the majority of exports.
Indonesia continues reforming its investment climate, the government has rolled out measures to ease red-tape, open up sectors for investment and improve public services. Furthermore, Indonesia’s economic planning follows a 20-year development plan, called the RPJMN (Rencana Pembangunan Jangka Menengah Nasional) each with different development priorities.
Indonesia has also made enormous gains in poverty reduction, and was cutting the poverty rate by more than half since 1999 to 9.78% in 2020. Due to the COVID-19 crisis, Indonesia is somehow able to maintain consistent economic growth, recently qualifying the country to reach the upper-middle-income status.
Although Indonesia has been classified as a newly industrialised economy, Singapore is a highly-developed, trade-oriented one. Singapore has to rely on innovation and human capital as well for its development, it’s because the country has a small land area and lack of natural resources.
However, it has successfully resulted in a leading global economy for high-end manufacturing and engineering, biotechnology and financial services. Singapore’s strong institutions and effective policymaking, a free-trade philosophy and a diversified economy remain a major draw for investors.
Business Environment
As a result of ongoing reform efforts in place, Indonesia eventually stands among the world’s top 10 improvers, according to the World Bank’s Ease of Doing Business Index 2017. It also climbed 15 places to #91, up from its previous rank of #106. On the other hand, Singapore is the second easiest place to do business in the world. There are some key comparatives, so you can take a glance:
Starting a business in Singapore takes a rank of #6, meanwhile starting a business in Indonesia ranks of #151.
Getting credit in Singapore ranks of #20, while in Indonesia ranks of #62.
Enforcing contracts in Singapore ranks of #2, while in Indonesia ranks of #166.
Singapore is also more open to business and trade than Indonesia. It’s because Singapore’s open-door policy, importing and exporting require fewer procedures and are relatively more inexpensive compared to Indonesia.
The legal system in Indonesia is based on civil law, while Singapore’s legal system is based on English common law. Generally, common law courts abide by past judgments in examining an issue, meanwhile, in civil law systems, codes and statutes are designed to cover all cases.
The World Justice Project, which measures the effectiveness of rule of law in each country, has ranked Singapore #9 and Indonesia #61 for rule of law respectively.
Workforce
Indonesia’s population is over 250 million and becoming the world’s fourth most populous nation. Indonesia has a young workforce, with over 50% of its population under the age of 30. 97% of Indonesia’s citizens receive primary education, but only 23% of students make it to tertiary education.
On the other hand, Singapore has a 5.5 million population and its median age is 40 years. More than 70% of residents aged 25 to 34 are tertiary educated. Overall, the tertiary-educated accounted for 40% of Singapore’s population aged 25 and over.
Business Language
Bahasa Indonesia is the official language in Indonesia, that is used both for business and education. Yet English is widely spoken, but it is less outside its major cities. As such, business owners and foreign workers may like to consider taking Bahasa Indonesia lessons.
On the contrary, English is the medium of business and education in Singapore. Additionally, Singaporeans learn English, as well as their mother tongue, such as Mandarin, Malay or Tamil in schools. Therefore, most of them are effectively bilingual.
Business Incorporation and Set-Up
Starting a business in Indonesia can be complex and time-consuming for foreigners, as seeking approval from the Indonesia Investment Coordinating Board (BKPM) can be more complicated. Companies that are wholly-owned by foreigners are called Perseroan Terbatas Penanaman Modal Asing (PT PMA), which require 2 shareholders and a minimum paid-up capital of IDR 10 billion (approx. S$1 million).
The Indonesian LLC (Perseroan Terbatas) is the most popular type of business entity used by locals to do business there. There are other forms of business entities, such as civil partnership (Maatschap or Persekutuan Perdata), firma partnership, representative office, permanent establishment and limited partnership (Commanditaire Vennootschap). However, foreign parties are not allowed to establish partnerships in Indonesia.
Corporate entities in Singapore include Private Limited Company, Representative Office and Sole Proprietorship. In Singapore, it takes only 24 hours and 2 procedures to incorporate a company there. Though, it takes 3 until 6 months and 9 procedures to form a company in Indonesia.
Corporate Taxation
The marginal corporate tax rate in Indonesia is 25%, while it is capped at 17% in Singapore. According to the ‘Doing Business 2020’ report, Singapore was ranked 7th worldwide for its attractive tax rates and online tax filing procedure. Instead, Indonesia was ranked 81th for the same parameter.
The World Bank report also found that businesses in Indonesia make 52 tax payments a year and spend 259 hours a year filing, preparing and paying taxes. On the contrary, Singapore businesses make five tax payments a year and spend 82 hours a year filing, preparing and paying taxes.
Indonesia’s growing consumer sector and ongoing reforms became one of the reasons investors are interested to invest in, but the ease in doing business in Singapore is more attractive to investors. Thus, many foreign investors and traders still prefer Singapore to Indonesia.
In conclusion, both countries have their own plus points in expanding the businesses there, and both have attractive markets for investors. Eventually, it depends on what your business needs in the future.
Located at the heart of Asia, Singapore serves the fast-growing markets for the Asia-Pacific region, and as well as the rest of the world. It also offers world-class connectivity and well-developed infrastructure which enables easy access to global markets. No surprise to us, many foreign entrepreneurs have an eye to invest in. But, what are other essential things that you will get there? Thus, this article will provide you information about the considerations for expanding the business to the country!
Singapore has a strong position as Asia’s risk management centre. Its global currency and derivative trading hub could enable international investors and traders to manage their investment, as well as trading portfolios efficiently from a single location. However, it makes Singapore consistently ranked as the world’s most active trading centre, besides London, New York, and Tokyo.
There are also some big industries in Singapore, and foreign entrepreneurs are interested in the country. The industries are financial services, electronics, chemicals, oil drilling equipment, petroleum refining, ship repair, tourism, manufacturing, and forth.
Based on the World Bank’s Doing Business Ranking 2020, Singapore has ranked second in Asia on a ranking of the simplest place doing business. In addition, Singapore has made dealing with construction permits to enhance its risk-based approach, to improve public access, and to streamline the process to obtain a construction permit.
Over the years, Singapore is well known as the world’s most business-friendly country. However, its economic freedom score is 89.4, making it the world’s freest economy in the 2020 Economic Freedom Index. The Singaporean government has also poured a budget to fund generous housing, transport, and healthcare programs.
Doing business in Singapore can save your money, as the costs of office rental here remain significantly lower than the rival financial centres, such as London, New York, Hong Kong, and Tokyo. In CBRE’s 2019 Global Prime Office Occupancy Costs, Singapore came on 14th places of the most expensive locations globally, but it’s much far behind Hong Kong Central (1st), London West End (2nd), Hong Kong Kowloon (3rd), New York Midtown Manhattan (4th), Tokyo Marunouchi / Otemachi (8th), and London City (9th).
Last but not least, Singaporean labor is more skillful and educated, especially in the IT industry and financial services industry. Singapore also has a globally competitive workforce, and it’s a plus point for foreign investors to expand the businesses there.
Essential Things You Should Know Before Expanding The Business There
Singaporean entrepreneurs have a desire to expand their businesses abroad, in order to do so they need to gain access to a larger consumer market. It means an increment in the overall revenue of the company is needed. Hence, there are many plus points that can be derived from international company expansion.
There are essential things that you should pay attention, before expanding your business to Singapore. And, they are:
1. The Easiness of Company Incorporation
As mentioned above, Singapore is an easy place to conduct a business by registering and incorporating a company there. As long as you have all necessary requirements, you can submit the application, and your company is eventually established in a suitable way. Both local and foreign entrepreneurs can be legally permitted to set up a company in the country.
The first step of processing to set up a foreign company is creating a representative office. An authorized representative office will assist a business owner with market research, compliance, and pricing schemes.
However, foreigners entering Singapore for business purposes have three options in which they can use to establish a business. They can set up a subsidiary company, set up a branch, or incorporate it with a local company to facilitate their business activities. This depends on your business needs.
2. Singapore’s Outstanding Tax System
Taxes are quite an interesting topic for any entrepreneur, and one of the key considerations for setting up a business in Singapore, or even anywhere in the world. One of Singapore’s unique advantages is its low effective personal and corporate tax rates. Personal income tax has a tier system that starts from 9% and goes up to 22% for income above S$320.000.
Then as well, corporate tax rate is capped at a flat rate of 17% on a company’s chargeable income. There are no capital gains taxes in Singapore, which follows a single-tier tax policy for income that has been taxed at the corporate level, but dividends can be distributed to its shareholders tax-free.
The government itself has adopted a more broad-based consumption tax called Goods and Service Tax (GST) in order to be a dependency on income taxes to make the country’s economy more competitive. In addition, Singapore maintains one of the world’s lowest GST rates at currently 7%, ranking below the global average VAT/GST rate of 16.4%, and the Asia-Pacific average of 10.5%.
3. Flexible Immigration Policies
Singapore has an open immigration policy that facilitates the relocation of foreign nationals for those who want to set up business there. If you are an entrepreneur who wants to expand or run your business there, the government has prepared for your needs and made appropriate Singapore work visa provisions.
In order to help value-adding individuals settle permanently, Singapore has a flexible immigration policy, making it easier for foreign business owners to gain Singapore Permanent Residence (PR) status.
4. Trade Agreements
Singapore is part of many trade agreements that have been offered to facilitate business activity across the country. The first trade agreement whichever included Singapore was regarding the ASEAN Free Trade Area (AFTA).
The trade agreement first came into force in 1993, and until today, Singapore becomes a part of a great many trade agreements with countries all over the world. The country also continues to be involved in trade agreement negotiations with other countries.
Singapore’s many free trade agreements facilitate the conduction of business and trade activities with other countries. Thus, it’s allowing foreign businesses to be able to expand business operations to Singapore.
In conclusion, many foreign investors definitely have an eye on Singapore as an emerging market to expand their businesses. All these reasons can convince foreign investors to invest and open a business in Singapore. Furthermore, the investors have to prepare everything before venturing into the country, such as prepare the related documents in advance as well as be aware of all the regulations. If you need help to expand your business, you can contact us below. Viettonkin will always be here to assist you anytime!
Venturing a new market in Vietnam can be risky and costly. Thus, it is advisable for Singaporean enterprises to make optimum use of Market Readiness Assistance (MRA Grant) or Market Research grant to grow their businesses. This article provides you with an overview of MRA or Market Research, the requirements, and the advantages of using the MRA. Let’s check this out!
Overview of Market Readiness Assistance (MRA) or Market Research
In the globalization era, it is inevitable to expand your business to the overseas market, and we all know that venturing into a new foreign market can be daunting and costly.
Thus, Enterprise Singapore (ESG), a governmental agency under the purview of the Ministry of Trade and Industry, has introduced the MRA or Market Research grant to provide funding and financial support, also information for local enterprises, especially SMEs who wish to internationalize and grow their businesses.
Before getting into deep, we need to know first, what MRA is. Market Readiness Assistance or we can say MRA is a funding program offered by Enterprise Singapore to help Singapore incorporated companies to enter the overseas markets by providing financial assistance. This includes support for the overseas market set-up, overseas business development, and overseas marketing promotion.
If your business is SME, you can get an international boost with the MRA grant to help take your business overseas.
Business entity is registered or incorporated in Singapore.
New market entry criteria, for example, target overseas countries whereby the applicant has not exceeded S$100.000 in overseas sales in each of the last three preceding years.
At least 30% local shareholding.
Group Annual Sales Turnover of not more than S$100 million, or Company’s Group Employment Size is not more than 200 employees.
The eligible employers who meet the criteria can also qualify for additional subsidies under the SkillsFuture Enterprise Credits (SFEC) scheme:
Have contributed at least S$750 Skills Development Levy over the qualifying period.
Have employed at least three Singapore Citizens or Permanent Residents every month over the same period.
Have not been qualified for SFEC at any of the earlier periods.
To apply for the MRA, you also need to follow the application steps:
Cost Quotations
Firstly, the applicant should request quotations for all the qualifying activities that they are considering to adopt from a third-party vendor, such as a business consultancy company or PR agency.
Business Grant Portal
After having the estimated costs for the activities, your company can submit the application along with the quotation through the Business Grant Portal, a platform for businesses to apply for government grants.
Claim
The MRA grant can only be distributed on a reimbursement basis. All claims can only be done after the applicant received an offer letter from ESG. The timeline for the claims is limited within three months of the project end date.
However, a company that wishes to apply for the grant cannot engage in any agreement, make initial payment or deposit as well as initiate a project with the third-party consultant at the point of the application. The claiming project also can be done through the Business Grant Portal.
The Benefits of Singapore’s MRA Grant for Singaporean Investors to Venture in Vietnam
In February 2020, Singapore announced the additional budget for the MRA grant, also its extended timelines and upgraded grant schemes. It is good timing for Singaporean investors who want to venture a business internationally, especially in Vietnam.
Since the government poured more budget, there are clearly some benefits for Singaporean investors for MRA grants.
The newly implemented incentives are:
1. Enhanced Financial Support
Under the latest MRA grant, a few financial incentives are boosted to better support local companies in their overseas ventures. In fact, the limitation of the MRA grant application has been lifted. The companies are now allowed to submit more than two applications in a year. However, the rule of each grant remains the same, and each application can only cover one activity. Additionally, the unused grant cannot be carried forward to the following year.
Besides the elimination of the application quota, the monetary support level for projects and expansion activities remains at 70%, and the deadline for this incentive has been extended by three more years to March 31, 2023. The maximum grant for this financial support has also been increased from S$20.000 each year, to S$100.000 per new market over the three years.
Hopefully, these upgraded incentives will largely reduce the financial issues of local companies setting up businesses in Vietnam.
2. Wider Coverage of Activities
The targeted activities can be categorized into four key areas.
Business set-up in the overseas market.
It expenses related to market entry assessment, such as advisory, legal and documentation costs.
The third-party costs incurred
It identifies overseas business partners through business matching.
The overseas market promotion
The activities such as marketing, PR, trade show space rentals, and forth, are also considered as qualifying activities under the MRA grant.
It helps companies to have better leverage for FTAs in target markets and in-market business development consultancy services. In addition, it identifies and deploys suitable employees to hold business expansion activities in the target market, and it has been included in the list of supportable activities as well.
Singaporean investors should not be too worried about venturing into a new market to Vietnam, as long as they prepare for everything. In conclusion, with this MRA grant, you do not need to worry much about the financial, and can expand your business into the overseas market.
With large populations, growing economy, and competitive tax incentives, both Vietnam and Indonesia have emerged in recent years as potential hubs for business and foreign investment. Ever since opening its door to the world in 1986, Vietnam has become one of Asia’s leading exporters. Additionally, the growing cost of labor and trade tariffs in China has redirected investment to Vietnam as a cheaper alternative. On the other hand, Indonesia is proving itself as a strong competitor in attracting foreign investment with its liberalization policy and economic packages. This article provides a broad comparison comparison of doing business in vietnam and indonesia.
Vietnam also developed one of the most competitive tax regimes in ASEAN, drawing in investors who might take advantage of the lower costs for doing business in Vietnam and to position themselves ahead of competitors.
Indonesia continues to offer vast potential thanks to resilient economic growth, low government debt, large young population, and prudent fiscal management. According to UNCTAD's World Investment Report 2020, FDI investment in Indonesia increased by 14% between 2018 and 2019, achieving USD 23,4 billion; while FDI stock reached USD 232 billion in 2019. Indonesia ranks 4th in 2020 as the world best economy to invest in by US News and World Report. FDI growth in the second quarter of 2019 mainly concentrated in electricity, gas and water, transportation and telecommunication.
A set of economic policy packages implemented by the Indonesian government on liberalisation, business certainty, interest rate tax cuts, energy tariffs cuts for labour-intensive industries, tax incentivesfor economic zones, and lowered tax rates on property greatly stimulated FDI growth. Investors are shifting towards Indonesia as a potential FDI hub for its increasing political and economic stability.
According to Indonesia Investment Coordinating Board (BKPM), investment in the first quarter of 2020 increased by 8% compared to the same period in 2019. Top five countries investing in Indonesia include Singapore, China, Hongkong, Japan, and Malaysia, with FDI from SIngapore totalling 6.527 billion USD in the first quarter of 2020, accounting for 23.1% of the total investment capital.
Vietnam is the second country after Singapore that aggressively negotiates Free Trade Areas (FTAs) with ASEAN members and other foreign blocs such as EU. The FTAs provide preferential tariffs and investment protections, which are incentives to foreign investors. Compared to Indonesia, Vietnam is more open towards FDI with less restrictions and greater incentives. According to Vietnam Law on Investment and Vietnam WTO’s Commitments, it is allowed to set up entirely foreign-invested businesses in Vietnam in most sectors. For example, trading, IT, and manufacturing welcome FDI. Some business lines such as tourism and advertising, however, require a Vietnamese joint venture partner.
There are several types of legal entities allowed for foreign investors in Vietnam, the most common of which include Limited Liability Company (LLC), Joint stock company (JSC), and Representative office. In most sectors it is also possible to register a branch of a foreign company. Business incorporation is regulated by the DPI (Department of planning and investment).
Vietnam law does not explicitly require a minimum amount of investment capital in setting up a company. However, the Department of Planning and Investment will assess the amount of capital contribution and see whether it corresponds to the planned expenses of the company. To set up a company in Vietnam, however, you would need a local registered address.
Indonesia
Starting a business or legal entity in Indonesia can be hazardous to foreigners who lack profound experience with the country and do not have useful contacts or networks. Indonesia is not the world’s most business friendly country, which is reflected by the World Bank Index. Investors wishing to set up a partially or wholly foreign-owned company in Indonesia should consider the regulations on foreign ownership regarding the line of business.
There are two legal entities permitted for foreigners in Indonesia: a foreign investment limited liability company (PT PMA) and a representative office (KPPA). Under Law No. 25 of 2007 regarding on Investment, any form of direct foreign investment in Indonesia must be in the form of a limited liability company. Company incorporation requires approval from BKPM (the Capital Investment Coordinating Board) and relevant authorities for certain industries.
Limited liability company must generally comply with the following:
Allowed activities: all business activities related to the sector it is engaged in and received approval from BKPM.
Foreign ownership restriction depends on the business lines set out in the Negative Investment list.
Minimum capital: USD 680,000
All shareholders, directors and commissioners eligible for work permit, unlimited amount of business visa sponsorships, work permits can be issued to foreign experts.
The most up-to-date 2016 Negative Investment list includes business fields that are restricted to foreign investment. Fields reserved for investment by or partnership with domestic enterprises include construction consultancy services at less than USD 700,000. Fields open for partial foreign ownership include internet service, professional training courses, distribution and warehousing, department stores with retail space of 400 to 2,000 sq. meter, general sale agencies for foreign airlines.
Representative office has less requirements for operation; however, its activities are restricted to market research, networking… and forbidden from marking profit/revenue or engaging in sales.
Most business activities and investments in Indonesia and in Vietnam will be affected by the following taxes:
Corporate Income Tax
Individual Income Tax
Value Added Tax (VAT)/ Sales Tax
Withholding Tax
Social Insurance, Unemployment Insurance ad Health Insurance Contributions
General corporate income tax rate is 25% in Vietnam and 20% in Indonesia. With businesses operating in the petroleum, gas and natural resources sector, the tax rate is 32 - 50% for companies in Vietnam with at least 40% of its shares traded on the stock exchange.
Both Indonesia and Vietnam use a progressive individual income tax rate between 5% - 30% and a flat rate of 20% for non-residents. Sales tax in both countries is 10%.
Labour
Vietnam’s minimum wage is slightly below that of Indonesia, at $130-190 per month compared to $240-300. However, the availability of labour skill in Vietnam is comparatively low and concentrated in major cities, which is a limitation to businesses in niche sectors such as IT.
Number of holidays
Compared to Indonesia (20 holidays), Vietnam had 9 holidays less in a year, meaning it has 9 more working days. Additionally, Vietnamese people do more working hours a day than in any ASEAN country.
Political stability
Vietnam has proven over time to be a politically stable country. Indonesia has had several political unrest in Jakarta and Papua. A stable country offers foreign investors a supportive legal framework, predictability, and assurance of longevity.
Natural disasters
While Most areas in Asia are prone to natural disasters, Vietnam’s industrial centers are mostly safe from the destruction of natural disasters.
To sum up, there are various advantages and disadvantages associated with each country in terms of foreign investment, business incorporation, and conducting business. Depending on the industry and line of business, priorities may vary and it is advisable to assess all criteria before doing business in Vietnam and Indonesia. Our VietTonkin experts with longstanding presence in both countries are always available to assist you along the way.
Table of Contents
Selecting a name is the most important decision when incorporating a new company. The image of a business that you want to create will be reflected through its name. Registration of the company name will also protect the name and no other company allows to use the same registered name.
This article focuses on the selection of Singapore company names, along with applicable naming regulations and procedures which are required when deciding a name for the new company. Let’s keep reading the article!
Selection of Company Name in Singapore
The Accounting and Corporate Regulatory Authority (ACRA) will approve the name of a company, but they will refuse a proposed name if it is similar, identical or phonetically the same as a registered company.
The use of certain words such as “bank”, “insurance”, and “education” could be subjected to control and regulation by other governments and require permission before proceeding to incorporate.
Undesirable (if it is obscene and includes religious name)
Identical to any registered name of a company, corporation, business, partnership, limited liability partnership.
Identical to any reserved name as per the Business Registration Act 2014, Limited Liability Partnership Act, or Limited Partnership Act.
Not accepted by the Registrar as per the directions of the Minister.
You are required to exercise caution and avoid selecting names that resemble the name of another because the Registrar has the delicacy to direct you to change your company name if another company or business has a valid complaint within 12 months that your name resembles their company’s name or is likely to be mistaken for it.
The Regulations on Determining Identical Names
The companies (Identical Names) Rules and Business Registration (Identical Names) Rules were enacted pursuant to the news. 27(2D) of the Companies Act and s. (Provigil) 11(10) Business Registration Act.
They are rules set out what the Registrar will consider as identical:
In determining whether one name is identical to another, the following shall be disregarded:
“The”, where it is the first word of the name;
“Private”, “Pte”, “Sendirian”, “Sdn”, “Limited”, “Ltd”, “Berhad” and “Bhd”;
the following words and expressions where they appear at the end of the name: “company”, “and company”, “corporation”, “Incorporated”, “Asia”,“Asia Pacific”, “International”, “Singapore”, “South Asia”, “South East Asia” and “Worldwide”;
any word or expression which, in the opinion of the Registrar, is intended to represent any word or expression in sub-paragraph (iii); (v) the plural version of the name; (vi) the type and case of letters, spacing between letters and punctuation marks; and
b. The symbol “&” is deemed to have the same meaning as the word “and”
The rules also allow for the Registrar to refer the parties in dispute over the use of a name to mediation before giving any direction for a name change.
For names with initials, key in the various combinations of the proposed name.
Eg. If the proposed name is “AB Trading”, the possible ways of checking are: AB, A B, A.B, A. B, A-B, A - B, A&B, A & B, ANB, A N B, A ‘n’ B, The AB, The A.B, The A&B, etc.
Check for names with similar pronunciations.
The possible ways of checking for similarly pronounced names are:
Eg. Wah, Wa, Hwa, Hua, etc. Sing, Seng, Sin, Sen, Xing, Xin, Shing, etc. How, HaoYen, Yan, Yian, Yien, Yuan, etc. Chong, Chung, Cheong, CheungCity, CitiClassic, Classique, Klassic, Classic, etc. Express, Xpress, X’press, X-press, etc. Yew Fa, Yew Fatt, You Fa, Yu Fa, Yewfa, U Fa, etc.
Eg. If the proposed name is “The Fashion”, the possible ways of checking are: Fashion, De Fashion, De-Fashion, De’ Fashion, De. Fashion, D. Fashion, D-Fashion, D Fashion, D’ Fashion, etc.
Check for similar names, but in different sequence(s).
Eg. If the proposed name is “Gift Express”, please also check for “Express Gift”. If the proposed name is “Bags Big and Small”, please also check for “Bags Small and Big” / “Big and Small Bags”, “Small and Big Bags” etc.
Check for similar names dealing with a similar trade or in a similar industry. Also, check for words with similar meanings as the proposed name.
Eg. “Rose Transport” is similar to “Rose Transportation” / “Rose Forwarding”, etc. “Bob Construction” is similar to “Bob Renovation” / “Bob Contractor” / “Bob Builder”, etc. “Red Fashion” is similar to “Red Boutique” / “Red Apparel”, etc. “AB Trading” is similar to “AB Marketing” / “AB Enterprise” / “AB Import & Export”, etc.
Note that each of the following common descriptive words is considered similar to those mentioned the same line:
i) Trading; trade; marketing; enterprise
ii) Investment; holding
iii) Construction; building; builder; build
iv) Contractor; renovation contractor
v) Systems; solutions; information technology; I.T.; technologies
Graphical words and phrases, including names of countries and places, are not considered distinguishing or descriptive.
Eg. “Hello Trading” is similar to “Hello Trading International” / “Hello Trading Singapore”, etc. Conversely, “Comfy Sofas South-East Asia ” is similar to “Comfy Sofas”, etc.
Punctuation marks are not considered to be sufficiently distinguishing or descriptive.
Eg. “Happy! Hamsters” is similar to “Happy Hamsters” “Faraway Tour” is similar to “Far-Away Tour”
Check for similar company and business names, whether the proposed name is for a company or a business.
Eg. “Square Chocolates Pte Ltd” is similar to “Square Chocolates Trading”, etc. “Loud Music Enterprise” is similar to “Loud Music Inc.” / “Loud Music Pte Ltd”/ “Loud Music Sdn. Bhd.”, etc.
These are the regulations on company names in Singapore, and deciding a company name is quite difficult, as the name we choose is probably similar to other companies. Thus, these are rules and guidelines for you to set out the company’s name.
In conclusion, you need to remember that a company cannot be incorporated without a name while deciding a name, and reserving it is one of the first steps. The name of your company should be selected after careful observation of the regulations of the Companies Act. Choosing the identical name should be avoided too, and if the name that you select is not online with the law and regulation, it will either be rejected in the first place, or you will get complained against as per the procedures provided by ACRA.
Vietnam stands as one of Asia’s premier destinations for foreign direct investment (FDI), offering significant growth potential amidst a dynamic economy. To succeed, investors require a deep understanding of the local landscape, from regulatory frameworks to market-specific opportunities.
This comprehensive eBook serves as your strategic guide to navigating Vietnam's investment environment. It provides an in-depth analysis of high-potential sectors, outlines crucial legal and compliance considerations, and details proven strategies for successful market entry and operation.
Download the eBook to equip yourself with the expert insights and actionable knowledge needed to invest in Vietnam with confidence.
Vietnam stands as one of Asia’s premier destinations for foreign direct investment (FDI), offering significant growth potential amidst a dynamic economy. To succeed, investors require a deep understanding of the local landscape, from regulatory frameworks to market-specific opportunities.
This comprehensive eBook serves as your strategic guide to navigating Vietnam's investment environment. It provides an in-depth analysis of high-potential sectors, outlines crucial legal and compliance considerations, and details proven strategies for successful market entry and operation.
Download the eBook to equip yourself with the expert insights and actionable knowledge needed to invest in Vietnam with confidence.
Founded in 2009, Viettonkin Consulting is a multi-disciplinary group of consulting firms headquartered in Hanoi, Vietnam with offices in Ho Chi Minh City, Jakarta, Bangkok, Singapore, and Hong Kong and a strong presence through strategic alliances throughout Southeast Asia. Our firm’s guiding mission is aimed towards facilitating intra-ASEAN investments and connecting investors in Southeast Asia with the rest of the world, thus promoting international business relationships and strengthening inter-nation connections.