Comprehensive costs of establishing a joint stock company

Costs of establishing a joint stock company are an important first step when starting a business in Vietnam. New businesses need to clearly understand costs of establishing a joint stock company to plan effectively and avoid legal and financial risks. The article below Long Phan will analyze each item in detail so you have a comprehensive view of establishment costs.

The importance of estimating costs of establishing a joint stock company

Estimating the costs of establishing a joint stock company plays a key role in the startup process. Detailed financial planning helps businesses manage capital effectively and avoid legal risks. Understanding the necessary costs helps investors prepare full financial resources.

Accurate estimates help businesses optimize initial capital. This is especially important for newly established joint stock companies with limited resources. Reasonable cost allocation between items such as business registration, equipment and working capital helps businesses operate smoothly in the early stages.

In addition, cost estimates also help businesses comply with legal regulations on minimum charter capital. This ensures the establishment registration process goes smoothly, avoiding the application being rejected by authorities due to not meeting financial requirements.

Factors affecting costs of establishing a joint stock company

Establishing a company not only involves legal issues and procedures but also involves significant costs. The cost of starting a company can vary greatly depending on many different factors. Specifically:

• Charter capital: is the most important factor affecting the cost of establishing a joint stock company. The higher the charter capital, the greater the related fees such as charter notarization and business registration. Enterprises need to consider carefully to determine the appropriate capital level for their scale and field of operation.
• Business line: significant impact on cost estimates. Some specific professions such as finance, insurance or construction may require sublicenses, resulting in increased costs. Enterprises need to carefully study business conditions to make realistic estimates.
• Head office location: directly affects office rental and equipment costs. Central areas often have higher prices than suburban areas. Businesses need to consider location advantages and costs to make appropriate decisions.

Details of costs of establishing a joint stock company

Business registration fees

Business registration fee is a mandatory cost when establishing a joint stock company. According to regulations in Circular 47/2019/TT-BTC, the fee is 50,000 VND for each registration. This fee applies to the issuance of a new Business Registration Certificate.

Businesses that register electronically are exempt from this fee. This encourages companies to use online registration, which saves costs and time. However, businesses need to carefully prepare electronic records to avoid errors.

In addition to official fees, businesses may incur additional costs for photocopying and notarizing related documents. These amounts usually range from 200,000 to 500,000 VND depending on the number and type of documents that need to be notarized.

Cost of publishing corporate information

The cost of disclosing corporate information is 100,000 VND for each announcement. This is a mandatory fee according to the provisions of the Law on Enterprises 2020. Enterprises must make the announcement within 30 days from the date of issuance of the Business Registration Certificate.

The published content includes basic information about the enterprise such as name, code, head office address, business lines and charter capital. The announcement is made on the National Business Registration Portal, ensuring transparency and ease of searching.

Businesses need to pay attention to preparing sufficient information for accurate disclosure. Misstatements can lead to legal issues and subsequent adjustment costs.

Cost of making a seal

The cost of engraving a company round seal ranges from 200,000 VND to 500,000 VND. The specific price depends on the service provider and the type of seal the business chooses. For title stamps such as Director or Chief Accountant, the cost is usually lower, from 80,000 VND to 150,000 VND each. In addition, businesses should consider carefully the number and type of seals needed. Engraving too many stamps not only increases costs but also makes management and use difficult.

Cost of purchasing digital signature for tax declaration

The cost of purchasing a digital tax signature when establishing a company usually ranges from 1,500,000 VND for a 1-year term to 3,000,000 VND for a 3-year term. Digital signature is an important tool, replacing the hand signature and seal of the legal representative in electronic transactions.

Using digital signatures helps businesses carry out administrative procedures and declare taxes online conveniently and quickly. This helps save time and travel costs for businesses, while ensuring security and authentication for electronic transactions.

Businesses need to choose a reputable digital signature provider, licensed by the Ministry of Information and Communications. This ensures that digital signatures are recognized by state agencies in electronic transactions.

Cost of opening a bank account

The cost of opening a bank account for businesses is usually free. However, most banks require an account maintenance deposit of about 1,000,000 VND. This deposit will be refunded if the business closes the account at a later date.

Procedures for opening a bank account often require basic documents such as a notarized copy of the ID card/CCCD of the legal representative, a notarized copy of the Business Registration Certificate, and a request to open an account according to the form. of the bank and decide to appoint chief accountant.

Businesses should consider carefully when choosing a bank to open an account. Factors to consider include service fees, interest rates, branch network and e-banking service quality.

Cost of purchasing electronic invoices and issuing invoices

The cost of purchasing electronic invoices and issuing invoices when establishing a company ranges from 1,000,000 VND to 2,000,000 VND. The specific fee depends on the number of registration invoices and the service provider. According to Decree 123/2020/ND-CP, from July 1, 2022, all businesses are required to use electronic invoices.

Using electronic invoices helps businesses save on printing, storage and invoice management costs. In addition, electronic invoices also help increase transparency in transactions, minimizing the risk of loss and fraud.

Businesses need to choose a reputable electronic invoice service provider that meets the technical requirements of the General Department of Taxation. This ensures that electronic invoices are issued validly and accepted by tax authorities.

Support services for establishing joint stock companies

The procedure for establishing a joint stock company is a complex legal procedure, requiring a deep understanding of the field of corporate law. With a team of experienced experts, Long Phan provides full support services for establishing a joint stock company. This service includes many specific tasks, helping businesses save time and ensure compliance with legal regulations:

• Consulting on choosing company name and business line;
• Consulting on business lines, ensuring compliance with business plans and legal regulations;
• Drafting business registration documents;
• Perform the procedure business registration: submit documents, monitor progress and explain if there are additional requirements;
• Implement business information disclosure on the National Business Registration Portal;
• Support for seal engraving and notification of corporate seal samples;
• Support in preparing documents and carrying out account opening procedures at selected banks;
• Register for digital signatures and electronic invoices. They will guide businesses to choose suitable suppliers and carry out registration procedures, ensuring businesses can use them immediately after establishment;
• Instructions on post-registration procedures such as labor declaration and social insurance registration;
• Initial accounting and tax consulting.

By using a comprehensive support service, businesses can ensure the establishment process goes smoothly, in accordance with legal regulations and saves significant time.

Estimating the costs of establishing a joint stock company is an important step for a new business. From business registration, information disclosure, seal making to purchasing digital signatures, opening bank accounts and issuing electronic invoices – each item affects financial planning. Long Phan provides comprehensive consulting services, helping customers optimize costs and procedures. Please contact us immediately via hotline: 0906735386 for professional support in establishing and developing joint stock companies in Vietnam.