Why choose a limited liability company (LLC) to create a sourcing platform in Vietnam?

Unlike a representative office, a foreign-invested limited liability company (LLC) can make profits and issue local invoices in Vietnamese Dong (VND) to its customers. Furthermore, the liabilities of the shareholders are limited by the assets they bring to the business. LLCs can also employ local staff directly.

In an LLC, members are only liable for the debts of the partnership to the extent of the capital contribution they have poured into the company. There is usually no minimum capital requirement for foreign investors that intend to establish an LLC in Vietnam, although authorities will expect the investor to commit a reasonable amount of charter capital according to the scale and business scope of the project. However, certain industries (such as banking, real estate and auditing services) may require a specific amount of charter capital. An LLC can consist of a single member or multiple members, but the total number of members cannot exceed 50. Investors can be corporations or individuals. An LLC cannot issue shares.