To start operating in Vietnam, foreign investors need to follow establishment procedure as required by the Law on Enterprises No. 59/2020/QH14, Law on Investment No. 61/2020/QH14.
Accordingly, investors need to satisfy the requirements and follow the necessary procedure during company establishment. Therefore, having consulting professionals will be an effective solution for investors to achieve the safest and most efficient outcome.
Depending on different industries and business lines, investors can carry out different procedure and business licenses, but the basic licenses include:
- Investment registration certificate
- Business registration certificate.
In addition, there are other documents such as:
- Conditional business license
- Retail outlet establishment license
- Certificate of Food Hygiene and Safety
- License of distribution, wholesaling, export and import rights
Our service package will focus on consulting and helping enterprises to best complete the following 3 contents:
INVESTMENT ACTIVITY CONSULTING
- Consulting about business fields, restrictions against foreign enterprises.
- Consulting about business locations, headquarters, factories… locations for project execution.
- Consulting about policies, rights in terms of tax benefits, if any.
- Consulting about capital, investment capital structure.
- Consulting about labor, wage policies that affect investment activities.
- Consulting about capital flow in investment activities: Investment capital – Production – Profit remittance overseas.
EXECUTION OF INVESTMENT PROCEDURE, BUSINESS LICENSES
After being consulted and fully understand the policies, governmental regulations as well as business rights, the next step is to carry out investment procedure as follows:
- Consult to investors about preparing the documents required by the laws.
- Prepare the documents in accordance with the regulations.
- Proceed with the licensing procedure at governmental authorities.
- Complete the service and deliver the outcomes (investment registration certification, business registration certification).
OTHER PROCEDURE AND LICENSES FOR ENTERPRISES
To start business activities, apart from basic procedure to obtain licenses such as: investment certification, business registration certification, enterprises need to carry out other procedure to satisfy the demand of different business fields.
This procedure can be understood as procedure for conditional business licenses. These licenses do not belong to the issuance right of any specific authority. Each industry and business field will be handled by the assigned governance body and entity.
Henceforth, these are the difficulties faced by foreign investors when running their businesses.
WHY CHOOSING OUR SERVICES?
- Our team has experience and ability to evaluate from project’s detail to overall.
- We have experience in handling procedure at governmental authorities.
- We have a lot of information, which will help investors make the most suitable decisions.
- Our service fees are always reasonable give the service quality and outcome.
- We guarantee the progress and we are highly valued by our customers.
FAQ:
Having more questions?
This is a matter of concern recently when all countries are afflicted by COVID-19 and investors face difficulties in travelling to handle their jobs.
Pursuant to the Law on Enterprises, an enterprise needs to have at least one legal representative living in Vietnam to manage, execute and perform duties, rights of enterprises. If the legal representative leaves Vietnam for more than 30 days, he or she needs to authorize another person to presume the work at the company on his or her behalf.
Accordingly, to prepare for the business plan in Vietnam to be carried out at the fastest pace, investors may not be present in Vietnam yet, but can refer to consulting entities to proceed with the company establishment procedure. Subsequently, investors can authorize another person in Vietnam before they can arrive and work in Vietnam.
Currently, Vinasc Group is providing services and authorized representatives to efficiently perform the duties and rights of enterprises
In a way, Investment certification and business registration certification are necessary conditions. To start operating a business, the enterprise must satisfy the sufficient condition, which is the business license (or sublicense).
As we have mentioned before, because business licenses are verified and issued by different governance bodies, the documents required and time needed to proceed are also different depending on each specific business lines.
In addition, business lines relating to multiple industries, issuance authorities need to consult and pre-valuate before approving the proposal.
However, the general timeframe is:
- Provincial, municipal, departmental licenses would take around 45 days
- Ministerial licenses would take around 60 days.
When enterprises have business plans for the fields stated in Appendix IV and guided by Article 7, Law on Investment No. 61/2020/QH14.
Investment conditions are conditions that individuals, organizations must satisfy when conducting investment activities in the conditional business lines and industries.
According to this appendix, there are 227 fields and industries in total that require business licenses or equivalent procedure.
Pursuant to Article 3, Law on Investment No. 61/2020/QH14, “investment capital” means money and other assets prescribed by the law on civil matters and international agreements to which the Socialist Republic of Vietnam is a signatory for the purpose of carrying out business investment activities.
Pursuant to Article 3, Circular 05/2014/TT-NHNN, guiding the implementation of foreign indirect investment activities in Vietnam:
“Indirectly-invested capital account” is a payment account in Vietnam Dong opened by a foreign investor in a licensed bank for implementation of permitted receipt and expense transactions relating to foreign indirect activities in Vietnam.
All indirect investment activities of foreign investors in Vietnam must be conducted in Vietnam Dong. Transactions relating to foreign indirect investment activities in Vietnam of foreign investors must be conducted through 01 (one) indirectly-invested capital account opened at 01 (one) licensed bank.
Pursuant to Article 3, Circular 06/2019/TT-NHNN, guiding the implementation of foreign direct investment activities in Vietnam:
“Direct investment account” means foreign currency or Vietnamese dong demand accounts opened by FDI enterprises and foreign investors at authorized banks to perform transactions regarding the foreign direct investment in Vietnam under the regulations stated in Article 5, 6 and 7 of this Circular.
The monetary capital contribution by foreign or Vietnamese investors must be transferred to the direct investment account.
Investment account is used to transfer profits and legal earnings from foreign direct investment activities in Vietnam to overseas.
Regarding the procedure:
- Investors often deploy the simplest option, which is to acquire a company undersigned by a Vietnamese or asking a Vietnamese to represent the company to avoid the procedure required by the Law on Investment.
With such investment procedure, investors are not complying with Circular 05/2014 and Circular 06/2019 stipulated by the State Bank of Vietnam, thus cannot transfer profits and capitals to overseas when needed. Principally, procedure not complying with the laws will not be protected by the laws if risks incur. Simultaneously, this will also lead to the risk of internal conflicts.
- The business lines chosen by foreign investors belong to conditional businesses but do not sufficiently follow the procedure or defy the laws by asking a Vietnamese to represent the company. This is also a risk of not being protected by the laws.
Regarding the investment execution:
Investors often face the related issues, such as:
- Capital contribution progress as guaranteed
- Contribute capital not accordingly to the guidance of the State Bank of Vietnam.