Software Company Formation

Many international investors in Vietnam embrace the opportunity to work with a 100% foreign-owned software company, since it ensures full foreign management control. To that end, Orient Software can help you establish a software company in Vietnam. For the smoothest operation of your company, we recommend our Build-Operate-Transfer model. In this model, we can operate the business for you even before you have established a legal entity in Vietnam, and we can ensure a smooth transition to your subsequent control.

Benefits of Software Company Formation

  • A 100% foreign-owned software company gives international entrepreneurs good access to local Vietnamese markets while retaining the ability to have full control of their business.
  • A 100% foreign-owned software company must have at least one shareholder and one director and is required to submit audited annual financial statements.
  • The Vietnamese government encourages 100% foreign investment in projects using the latest technologies and export-oriented projects.
  • Vietnam joined the World Trade Organization (WTO) in January 2007, and therefore the country is obliged to protect the intellectual property rights of foreign investors.
  • The Vietnamese government offers tax incentives to 100% foreign-owned companies, including temporary tax holidays for some projects. If foreign investors reinvest their distributed profits, they are entitled to a refund of any profit tax already paid with respect to the amount of profit reinvested.
  • A 100% foreign-owned software company is taxed at a maximum rate of 25% on profits sourced in Vietnam and overseas. The corporate tax applicable to business establishments conducting the exploration and exploitation of oil, gas, and other valuable and rare natural resources is between 32% and 50%. A preferential corporation tax of 20% and 10%, in the form of incentives, may apply if the enterprise meets certain criteria.