Skip to Content

Comparison of most common forms of business organizations

  


 

 

 

 

 

 

Company limited by shares

Limited company

Branch

Representative Office

An independent legal entity?

Yes

Yes

No

No

Eligible to conduct business activities?

Yes

Yes

Yes

No.
Permitted to do price negotiations, provide quotations, participate in tenders, and sign procurement agreements.
Not permitted to engage in income-generating business activities such as signing sales contracts, providing services, or receiving funds from clients

Minimum capital requirements(must be remitted from a foreign territory)

None

None

None

Not applicable

Minimum shareholders

2 individual shareholders or 1 juristic person

1 (individual or juristic person)

None

None

Minimum officers

3 directors and
1 supervisor

1 director

1 representative(branch manager)

1 representative

TAX:

 

 

 

 

        VAT

5%

5%

5%

N/A

        Enterprise income tax

17%

17%

17%

N/A

        Non-distributed retained earning

10%

10%

None

N/A

        Distribution of retained earnings   to foreign shareholders(parent  company)

20%

20%

None

N/A

 

 

 

 

 

 



.