Why Do Businesses Need Legal Consulting Services?
Every country has its own legal system governing business and investment activities, particularly for foreign enterprises. In Vietnam, failure to comply with legal regulations can lead to serious financial and legal risks.
Vinasc’s legal consulting services not only help investors and foreign businesses understand current legal regulations but also assist them in applying these regulations effectively to minimize risks and optimize business benefits.
Vinasc’s Legal Consulting Services
1. Business Legal Consultation and Support
- Providing information on regulations relevant to business fields and industries.
- Advising on tax and investment incentive policies.
- Addressing complex business scenarios related to legal regulations.
2. Labor and Insurance Consultation
- Assistance with labor-related matters, wages, and social insurance.
- Advising on work permit and temporary residence procedures for foreign employees.
3. Investment Procedure Support
- Consulting on investment capital, project execution, and profit remittance.
- Carrying out investment procedures in accordance with legal regulations.
4. Updates on New Legal Regulations
- Regular updates on new policies affecting businesses.
- Advising, explaining, and implementing adjustments according to new regulations.
5. Authorized Legal Representation
Vinasc provides professional legal representation services, ensuring the rights and obligations of businesses in the absence of their legal representatives. We handle:
- Representing businesses in dealings with government agencies.
- Ensuring business continuity during required periods.
Benefits of Using Vinasc’s Legal Consulting Services
- Clear Understanding of Legal Regulations:
We help businesses grasp essential regulations related to their industry, taxes, labor, insurance, and investment procedures. - Support for Lawful Decision-Making:
All business strategies and short-term decisions are thoroughly reviewed to ensure legal compliance before implementation. - Optimized Benefits:
Vinasc advises on leveraging legal advantages in contract negotiations and business operations. - Risk Prevention:
We assist businesses in identifying and preventing legal violations and potential internal risks.
Why Choose Vinasc?
- Extensive Experience:
With over 10 years of consulting for foreign enterprises in Vietnam, Vinasc has a deep understanding of legal mechanisms and the specific needs of FDI clients. - Professional Team:
Our experienced staff, fluent in multiple languages such as English, Chinese, and Korean, are ready to provide effective support. - Comprehensive Services:
From legal consultation to legal representation, we are committed to delivering the best solutions tailored to each business. - Competitive Costs:
Our services are cost-efficient without compromising quality.
FAQ
Pursuant to Clause 2, Article 9, Law on Investment 2020 (effective since 01/01/2021):
Pursuant to the laws, Parliament’s resolution, ordinance and resolution of the National Assembly Standing Committee, Government’s decree and the International Treaties, in which Vietnam is a member, the Government announces the list of industries, business lines restricted from the market approach of foreign investors, including:
a) Business lines not allowed in market access;
b) Business lines allowed in market with conditions
Legal Advisory
Pursuant to Point a, Clause 46, Article 1, Law on amendments to the criminal code 2017, penalties for tax evasion are:
1. Any person who commits any of the following acts of tax evasion with an amount of evaded tax from VND 100,000,000 to under VND 300,000,000 or under VND 100,000,000 while having incurred an administrative penalty for tax evasion or having an unspent conviction for any of the offences specified in Article 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309 and 311 hereof shall be liable to a fine of from VND 100,000,000 to VND 500,000,000 or face a penalty of 03 – 12 months’ imprisonment:
a) Failure to submit the application for tax registration; failure to submit the tax declaration; submitting a tax declaration after 90 days from the deadline for submitting the tax declaration or after the extended deadline for submitting the tax declaration as prescribed by law;
b) Failure to record revenues related to the determination of tax payables in accounting books;
c) Failure to issue invoices after selling goods/services or write lower values on invoices than actual values of goods/services sold;
d) Use illegal invoices or vouchers to record purchased goods and raw materials that results in reduction of tax payable or increase exempt, reduced, deductible or refundable tax;
đ) Use of other illegal documents to falsify the amount of tax payable or increase exempt, reduced, deductible or refundable tax;
e) Making incorrect declaration of exported or imported goods without making an additional declaration after customs clearance are granted, except in the circumstances specified in Article 188
g) Failure to declare or to correctly declare taxes on exported or imported goods, except in the circumstances specified in Article 188 and Article 189 hereof;
h) Collaborating with the consignor to illegally import goods, except in the circumstances specified in Article 188 and Article 189 hereof;
i) Using tax-free goods, goods eligible for tax exemption or conditional tax exemption for improper purposes without notifying the change of purposes to the tax authority.
For legal entities:
Punishments incurred by a corporate legal entity that commits any of the offences specified in this Article:
a) Any corporate legal entity that commits any of the acts of tax evasion specified in Clause 1 of this Article with an amount of from VND 200,000,000 to under VND 300,000,000 or from VND 100,000,000 to under VND 200,000,000 while having incurred an administrative penalty for tax evasion or having an unspent conviction for any of the offences specified in Article 188, 189, 190, 191, 192, 193, 194, 195 and 196 hereof shall be liable to a fine of from VND 300,000,000 to VND 1,000,000,000;
b) A corporate legal entity that commits this offence in any of the circumstances specified in Points a, b, d and dd Clause 2 of this Article shall be liable to fine of from VND 1,000,000,000 to VND 3,000,000,000;
c) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 3 of this Article shall be liable to a fine of from VND 3,000,000,000 to VND 10,000,000,000 or has its operation suspended for 06 – 36 months;
d) A corporate legal entity that commits this offence in the circumstance specified in Article 79 hereof shall be permanently shut down;
đ) The violating corporate legal entity might also be liable to a fine of from VND 50,000,000 to VND 200,000,000, be banned from operating in certain fields or raising capital for 01 – 03 years
Pursuant to Clause 1, Article 37, Law on Investment 2020, the enterprise belonging to one of these cases will have to undertake procedures for issuance of investment registration certificates:
Investment projects of foreign investors.
– When establishing a business entity, when making investment by contributing capital, purchasing shares or purchasing stakes of a business entity or when making investment under a business cooperation contract in one of the following cases, the foreign investor must satisfy the conditions and follow investment procedures applied to foreign investors:
a) Over 50% of its charter capital or more is held by a foreign investor(s) or the majority of the general partners are foreigners if the business entity is a partnership;
b) Over 50% of its charter capital or more is held by a business entity(ies) mentioned in Point a, Clause 1, Article 24 of this law;
c) Over 50% of its charter capital or more is held by a foreign investor(s) and a business entity(ies) mentioned in Point a, Clause 1, Article 24 of this law.
Pursuant to Clause 2, Article 37, Law on Investment 2020, enterprises belonging to one of these cases are not required to have investment registration certificates:
a) Investment projects of domestic investors;
b) Investment projects of the business entities other than those required to have investment registration certificates shall satisfy conditions and follow investment procedures applied to domestic investors when establishing a business
entity, when making investment by contributing capital, purchasing shares or purchasing stakes of a business entity or when making investment under a business cooperation contract.
c) Investment in the form of capital contribution, purchase of shares or stakes in a business entity;
Legal Advisory
Pursuant to Article 5 and Article 169, Land Law, foreigners are not the subjects that are allocated land or leased land, have land use rights recognized by the State, or acquire land use rights in Vietnam. Henceforth, foreigners cannot receive transfer of land use rights (so-called purchase land) in Vietnam.
Pursuant to Article 159, Law on Housing 2014 about purchasing (owning) houses, foreigners eligible for homeownership in Vietnam include:
a) Foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;
b) Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam (hereinafter referred to as foreign organization);
c) Foreign individuals who are allowed to enter Vietnam.
This law also mentions that foreign entities in Vietnam are eligible for homeownership only by these following formats:
a) Invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;
b) Buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.
Henceforth, foreign entities wishing to purchase housing in Vietnam can only purchase houses for living (including apartments and separate houses) in the project for commercial housing construction, except for national defense and security areas