5 CONDITIONS FOR ESTABLISHING FOREIGN CAPITAL COMPANIES IN VIETNAM
In the current practice in the Vietnamese business market, we can see a rapid increase in business registration and establishment of foreigners and overseas Vietnamese.
Conditions for establishing a company with foreign investment capital under Investment Law No. 67/2014 / QH13 and Decree 118/2015 / ND-CP guiding investment law - with 3 phases: ; Make a business registration and make a notice using your company seal.
Here are the main points about the establishment of a foreign invested company in Vietnam:
1. Conditions on Nationality of establishment / investment
Vietnamese law only allows foreign individuals / organizations to register for commercial presence in Vietnam when foreign traders who are nationals are members of the WTO in the form of:
- Business cooperation contract with a Vietnamese company / organization.
- Establish a 100% foreign owned company in Vietnam.
- Establish a joint venture company in Vietnam.
- Established representative office / branch in Vietnam.
2. Conditions on the location of the project, location of the company headquarters
Foreigners will not be able to register the company with the goal of: production outsourcing if the location of the project is located in the office building or in the small residential house; And the processing company when renting the company headquarters, renting out the project site outside the industrial zone.
Therefore, foreign investors need to choose the location of the project in line with their intended business objectives. This is an important point to make a difference in the procedure of establishing a company between Vietnamese and foreigners.
3. Conditions on the financial capacity of investors
Foreign investors must declare information on the investment capital of the investment project and the charter capital of the foreign capital company corresponding to their financial capacity. Three issues that foreign investors pay special attention to when establishing a company in Vietnam are:
- Provisions on the foreign investor's need to show proof of financial capacity for the expected capital contribution to the project (Normally, the capital contribution will be the charter capital of the company if the company is only registered. Claiming a single investment project). Proof of proof may be confirmation of account balance, guarantee of foreign bank or some other documents.
- Provisions on the total investment capital of the project is registered as much as the capital contribution of investors. Or regulations on the amount of investment capital, minimum capital contributions must be registered in the project.
- Provisions on the time limit for full contribution of investment capital.
4. Condition about the experience of the investor
This is a new point in the investment registration procedures. According to the form of investment registration application, issued together with Circular 16/2015 / TT-BKHDT, the contents of this document will be explained in more detail about the experience of investors with the intended investment objectives. The business experience of investors can help the Vietnamese state to "believe" in the project they will implement in Vietnam.
However, if investors are involved in a completely new field, how difficult will it be to obtain a certificate of investment registration from the Department of Planning and Investment?
5. Condition the project should meet when implementing the conditional investment project objectives
Investment Item 68/2014 / QH13 and portfolio of investment sectors detail the conditions of each specific objective in each case of doing business for foreign investors. The content of this part is quite long, cannot be shared in this post.
To get the core information for each area, answer the financial issues and prove your ability you can contact us to be shared and consulted clearly
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