6 (Six) points to remember when investing to set up foreign company in Vietnam
The number of foreign company setting up in Vietnam is increasing more and more. So what is needed or cannot be missed when establishing foreign company in Vietnam?
When deciding to invest and establish a foreign-invested company in Vietnam, foreign investors should learn and hire experienced local lawyers to carefully consult to understand and use or implement regulations together with needed legal procedures in Vietnam. In particular, it is needed to pay special attention to 6 important points if a foreign company sets up in Vietnam as stated in this article.
First thing is the field of investment and business
The field of investment is the first note when setting up foreign company in Vietnam
Based on the scope of market access commitments in Vietnam, the need that foreign companies set up in Vietnam and the ability to invest, foreign investors should choose the sectors of investment for jobs and industries. These should be good enough to implement as they answer the question that is it best to get invested? The best thing is to choose industries that have been explicitly committed by Vietnam in bilateral and multilateral international treaties to avoid the risk of being rejected when registering industries or fields. Each sector of investment is associated with the requirements of the feasible investment corresponding to the implementation, the investment conditions and specific business licenses. Therefore, eliminating the absence of registration of business lines will help investors to save maximum time and costs to implement the legal procedures that arise as well as obtain most convenient while registering and implementing business investment activities in Vietnam.
Second thing is the investors
Foreign investors investing in Vietnam may be individuals or foreign companies. Most of the common business investment industries are regulated to allow investors who are an individual or foreign company to fully set up in Vietnam without limitation. However, there are still some business lines with special conditions that have specific requirements on investment status that must be individuals or foreign companies. They can be determined through a combination of investment conditions for all sectors and investment for registered industries on the basis of scope of Vietnam market opening commitments and Vietnamese law provisions, if any.
Third thing is investment regulation for foreign companies set up in Vietnam
Third note is to consider investment regulation when foreign companies set up in Vietnam
Currently, Vietnamese market access commitments and Vietnamese laws only stipulate conditions for investment which are limits of projects to set up foreign-invested companies in certain sectors such as education, real estate business, traveling, or payment intermediaries. Meanwhile other normal business sectors do not have investment limit. Investors only need to ensure the feasibility of investment capital that can commensurate with the scope and scale of the project. In order to determine the appropriate amount of investment capital and charter capital, investors should determine the aggregate investment limit conditions if applicable to any successive investment sectors. Specific financial planning ensures feasibility when deploying the project. Hence, it can avoid too little registration leading to multiple adjustments that take time and cost. Experienced Lawyers can help investors estimate a reasonable minimum number for investors to have easier basis when determining total investment capital and charter capital needed to deal.
Fourth thing is about the contribution of investment capital and charter capital after foreign company set up in Vietnam
It should be noted that the contribution of investment capital and charter capital should be done in accordance with the registered time limit shown on the Investment Registration Certificate, the Company's Charter and Vietnamese law. Accordingly, it should be noted that the time limit for capital contribution of investors is at the same time contributing to the charter capital of the Company in Vietnam (for both limited liability companies and joint stock companies) signed by investors not more than 90 days from the date of issuance of the business registration certificate. Investors will have to contribute investment capital through credit transfer into the investment capital account opened by a foreign company sets up in Vietnam as required and guided by the State Bank of Vietnam. Time limits and procedures for investment capital contribution will be consulted and instructed in detail by Lawyers.
Fifth thing is about selecting investment locations and establishing companies
Investors should choose investment locations to set up foreign companies in Vietnam with a clear address. They should select the Landlord with sufficient proof of ownership and sublease rights, if any. Rental locations and offices are allowed to lease, be designed and be built in accordance with Vietnamese law, not in a state of dispute. Rent offices need to be designed and built to serve office functions on the basis of being licensed by a competent Vietnamese state agency. A lawyer will consult and assist investors in selecting the appropriate investment location and meeting any conditions to register an investment project.
Sixth thing is about using the company's seal
Foreign-invested companies in Vietnam have the right to decide the form, content and number of seals, which may have many seals with the same form and content. Before using, modifying, canceling the seal form, or changing the number of seals, the company must send a notice to the competent State agency where the company is located to inform about the above seal sample at National Business Registration Portal. After completing the notification procedure and posting the seal form on the National Business Registration Portal, the seal may be used from the effective date recorded in the posted notice.
Hopefully, with the six above mentioned notes about investment when a foreign company sets up in Vietnam is informative and helpful for you. You can refer to other articles related to establishing foreign companies in vietnam at this address: lhdfirm.com
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