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What to do if you need to hire workers in Vietnam without setting up a company?

No legal entity in Vietnam can still legally hire workers. Below is how to do it in the correct order, avoiding legal risks.

This page is an automatic machine translation of the Vietnamese original. For legal matters, the Vietnamese version prevails. View Vietnamese original

What to do if you need to hire workers in Vietnam without setting up a company?

Step 1: Understand the legal issue correctly

If a foreign enterprise does not have a legal entity in Vietnam, it cannot sign a labor contract directly with the workers here. The solution is to use an intermediary that has a valid legal entity and license to act on your behalf — that is the essence of EOR and labor supply services.

Step 2: Determine the appropriate type

  • Need unskilled, production labor → choose labor supply service or labor subleasing service.
  • Need office, professional, management personnel → choose EOR (Employer of Record) service.

Step 3: Work with EOR/supplier unit to document demand

Provide information about position, quantity, work location in Vietnam, and expected salary. The service unit will advise on the appropriate model and send a transparent quote per capita.

Step 4: Sign a service contract (not a labor contract)

Enterprises sign EOR service/labor supply contracts with Nhân Kiệt — not direct labor contracts with individuals. Nhân Kiệt then signs a labor contract, pays social insurance - health insurance - unemployment insurance and manages personal income tax obligations for employees.

Step 5: Operate and manage daily work

Workers still report to work and receive professional direction directly from foreign businesses like regular employees — the only difference is that legal documents, salaries, and insurance are managed by the EOR unit.

Step 6: Consider the long-term roadmap

As the scale increases, businesses can consider switching to establishing their own company in Vietnam; Nhân Kiệt supports handing over all personnel records at that time.

How many people can you hire workers in Vietnam without setting up a company? There is no hard limit, but this model is most suitable for scales from a few people to a few dozen people; Larger scale should consider establishing a separate legal entity to optimize long-term costs.

How long does it take to deploy? Usually only 1-2 weeks from closing the need and signing the service contract, much faster than the several months it takes to establish a company.

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