If you are an entrepreneur, have started a new business and you want to hit the ground running, it makes perfect sense that you would do anything that you can to protect your business and that includes registering it with the relevant department. The key is to find something that separates you from your many competitors so that your business stands out from the rest. You not only have to compete with people in your country of choice, but you also have to compete with online stores reaching out to your prospective customers from all across the globe.
The Vietnamese market is very attractive indeed and this is one of the reasons why many people are setting up new businesses there. Due to the fact that it might not be your country of origin, it makes sense that you would do all within your power to protect your business and yourself. This is one of the reasons why company registration is so incredibly important. Nobody expects you to know the intricacies of doing this and thankfully you can turn to third-party providers who have been registering businesses in this country for some time now.
If it was your hope to remain as a sole trader or as part of a partnership, you are leaving yourself exposed and the following are some of the top reasons why you should register your business here in Vietnam.
- It helps to limit your liability – You do not want to be putting any of your private things in jeopardy and this is why you must separate these assets from the business. If the business is properly registered, this allows you to separate your home from the business altogether and you don’t have to worry about the courts coming looking for it, in the event that your business doesn’t work out as planned. If you remain a sole trader or as part of a partnership, your personal assets could be in danger.
- It makes you more attractive to investors – The hope is that your business will do incredibly well and you will want to expand it further into other parts of the country. In order for that to happen, you need to come up with ways to generate cash inflow and you can turn to potential investors in order to be able to make your business grow. These investors will not want to entertain the thought of investing in your enterprise if you are not properly registered with the relevant government authority.
- It makes you more attractive to banks – At the beginning of your business enterprise, your wholesalers may not want to extend credit terms to you until they get to know you a little better. The hope is that you can turn to your bank or other lending institution to provide you with the money that you need. Once again much like the investors, they will be reluctant to do business with you if you are not a properly registered business. By putting everything into place, you can take advantage of business loans to allow you to take advantage of certain deals.
- You will pay less tax – This runs contrary to what many people believe and many are under the misapprehension that the smaller the business, the less tax that you pay. This is not true and if you have a properly registered business, your tax burden may not be as high as you think. If anything, the government will offer incentives for new businesses to locate there and you will probably end up paying less tax in any business year. You can take all of this extra money and reinvest it back into the business for more growth and for more development.
- Everything will be legally binding – This will work to your advantage when it comes to dealing with wholesalers, and other businesses. The hope is that you will never run into any difficulties but sometimes issues happen and you need to take these parties to the courts. The fact that your business is a legal entity in Vietnam will allow you to take your legal disputes in front of a judge. Any contracts that are signed will be legally enforceable and this allows you to protect your business interests.
- It gives your business legitimacy – New customers want to know that they can trust your business when handling their credit or debit card details. They also want reassurances that you are here for the long-term and once you have your business properly registered and they can see that, this increases their confidence in you and your enterprise. The same applies to dealing with wholesalers because they will not extend you a line of credit, if they are unsure that you will be around in one month, never mind six months or a year.
- The procedure can be straightforward – Your third-party provider has registered many new businesses before, so they know exactly what they’re doing from the get go. It is important that you have peace of mind with regards to protecting what is yours and this allows you to concentrate on more important things like increasing your customer base and increasing your profits. Your provider will keep you abreast of what is going on in the whole procedure and let you know when everything has been signed, sealed and delivered.
As you can now appreciate, it doesn’t make sense to not register your business as a legal entity here in Vietnam. You get to enjoy limited liability, you get to take advantage of certain tax breaks and it makes your business more attractive to potential investors. You can turn to lending institutions to provide you with the capital that you need to expand further and wholesalers will have no qualms about extending credit to your business. It is difficult to see the downsides of registering your business and there don’t seem to be any. Get it done today for a much brighter future.
