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Legal Considerations for Tech Startups in Vietnam: From Formation to Funding

posted 12 months ago

It is essential for tech startups to prioritize compliance, safeguard their interests, and cultivate sustainable growth. While some entrepreneurs may postpone adhering to regulations until their business achieves commercial success, establishing a solid foundation that is both commercially and legally sound is crucial for preserving accomplishments.

1. Company formation and funding

– Choosing the right legal entity
– Compliance with Intellectual Properties
– Employment law and labor contract for startups business

2. Funding and investment for startups

a. Investment regulations: Securing funding is a major milestone for startups, and while there are a few restrictions, the rules for obtaining funding are generally permissive. Importantly, there are incentives available for certain sectors, such as high-tech manufacturing. Ensuring compliance with the relevant regulations can make it easier for startups to attract both domestic and international investors.
b. Support organizations and institutions: Numerous organizations and institutions have been established to support the growth of startups. One such organization is the National Innovation Center (NIC), which was established through Decision 1269/QD-TTg. The NIC plays a central role in Vietnam’s efforts to cultivate the local startup ecosystem. It provides training and assistance to emerging enterprises, helping them form partnerships with major global technology companies like Amazon and Google.
c. Contracts and agreements with investors: When entering into investment agreements, startups need to carefully review and negotiate the terms in order to protect their interests. Important aspects to consider include the valuation of the startup, the equity structure, the rights and obligations of the parties involved (including key employees), exit mechanisms, and dispute resolution methods. Seeking assistance from experienced professionals can be invaluable in this process.

3. Conclusion

In conclusion, navigating the legal landscape is crucial for tech startups in Vietnam from their formation to funding stages. Understanding the necessary legal requirements and compliance obligations is essential to ensure a smooth and successful journey. From registering the business entity and protecting intellectual property rights to securing funding and entering into investment agreements, startups must carefully consider and address each legal consideration.

For the full detail of this post, please reference on this link: http://hmlf.vn/legal-considerations-for-tech-startups-from-formation-to-funding/


HMLF is always available to offer assistance in understanding the procedures with authorities.

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: [email protected]


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