Vietnam is now attracting foreign investors in many business fields. Therefore, the form of investment is an issue that many foreign investors are interested in. When investors want to invest in a certain country, they always have to find out what requirements and conditions that are in that country for investors so that they can check if they are suitable or not. Understanding this, LSX Law firm will provide information on investment as well as the Investment license application service for foreign investors through the following article.
Legal Ground
Investment Law 2020
What are foreign investors?
According to the provisions of law, a foreign investor is understood as:
“an individual with foreign nationality or an organization established under foreign law conducting business investment activities in Vietnam.”
Conditions for the implementation of investment projects
Pursuant to the Law on Investment, before establishing an economic organization, a foreign investor must have an investment project and be granted an investment registration certificate. In which, it is necessary to meet the following conditions:
Rate of ownership of charter capital
Foreign investors may own unlimited charter capital in economic organizations, except for the following cases:
Firstly, the ownership ratio of foreign investment in listed companies, public companies, securities trading organizations and securities investment funds is decided in accordance with the law on securities;
Secondly, the ownership ratio of foreign investment in the SOEs equitization or ownership change in other forms must comply with the provisions of the law on privatization and transformation of state enterprises
Thirdly, the ownership ratio Ownership of foreign investors not covered by the above provisions shall comply with other relevant laws and treaties to which the Socialist Republic of Vietnam is a member of.
Other conditions
So, investment form, scope of activities, Vietnamese partners participating in the implementation of investment activities, and other conditions as prescribed in international treaties to which the Socialist Republic of Vietnam is a contracting party.
Who must carry out the procedure
Well, Investors with investment projects in Vietnam shall carry out administrative procedures with the investment registration agency.
Agency in charge of administrative procedures
The Investment policy decision-making agency: National Assembly/Prime Minister/ People’s Committee of province or city.
The Investment registration certificate-issuing agency: Department of Planning and Investment of province and city.
Investment license application service for foreign investors
Procedures for the decision on investment policy
Step 1. Submit an application for the approval of investment policy
The investor submits the application to the investment registration authority, the application file includes:
- A written request for the implementation of the investment project;
- A copy of the identity card or passport for if the investor is an individual;
- A copy of the Certificate of Establishment or other equivalent document certifying the legal status of if the investor is an organization;
- The investment project proposal includes the following contents: investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, and investment schedule. Demand for labor, the proposal for investment incentives, assessment of the project’s socio-economic impact and efficiency;
- A copy of one of the following documents: financial statements of the last 2 years of the investor; commitment to financially support from the parent company; financial institution’s commitment to financially support; guarantee on the financial capacity of the investor; documents explaining the financial capacity of the investor;
- Proposing land use needs; In case the project does not request the State to allocate or lease land or permit the change of land use purpose, a copy of the location lease agreement or other document certifying that the investor has the right to use the site for the current investment project;
- Explanation of technology used for the projects if it’s using technologies on the List of technologies restricted from transferring, including the following contents: technology name, technology origin, technological process diagram; main technical parameters, use status of the main machinery, equipment, and technological lines;
- The BCC contract for investment projects in the form of BCC.
Step 2. Receipt and examination of the dossier
The investment registration authority shall receive and check the dossier.Then, If the dossier is complete and valid, they shall accept it and issue the receipts to the investors, or if the component of the application is incomplete or invalid, the specialist will receive it and give instruction and explanations for investors to supplement and complete the dossier.
Step 3. Appraisal and approval of dossiers
- Within 03 working days from the date of receipt of complete investment project dossiers, the investment registration agency shall send the dossiers for appraisal opinions of relevant state agencies. Mandarin;
- Within 15 days; from the date of receipt of the investment project dossier, the consulting agency shall appraise the contents under its state management and send it to the investment registration agency;
- Within 25 days from the date of receipt of investment project dossiers; the investment registration agency shall make an appraisal report and submit it to the People’s Committee of the province;
- Within 07 working days from the date of receipt of the application and appraisal report; Provincial-level People’s Committees shall decide on investment policies. In case of refusal, a written notice must be given clearly stating the reasons why.
Step 4. Receive administrative settlement results
So The Investors, based on the date on the application receipt will come to receive the settlement results at the investment registration agency that they have submitted the application to.
Results of administrative procedures: Decision on the investment policy of the People’s Committee of the province.
Issuance of Investment Registration Certificate
For an investment project subjected to an investment policy decision
So, The registration authority shall grant an investment registration certificate to an investor within 5 working days from the date of receipt of the decision on investment policy.
For investment projects that are not subjected to the decision on investment policies:
Firstly, submit the application for issuance of Investment Registration Certificate
Secondly, receive and check dossiers (Similar to Stage 1)
Thirdly, appraisal and approval of dossier
Within 15 days from the date of receipt of the complete dossier; the investment registration agency issues the investment registration certificate; In case of refusal, the investor must be notified in writing and clearly state the reasons why.
Finally, Receive administrative settlement results Investors, based on the appointment date on the application receipt, at the investment registration agency that has submitted the application.
The Results of administrative procedures: Investment registration certificate.
Hope this article is useful for you, If you need any further information on our Investment license application service for foreign investors, please contact LSX Law Firm: 0833102102
Frequently Asked Questions Do
So, Do foreign investors in Vietnam have to pay tax?
Yes. One of the obligations of foreign investors is to declare and pay all taxes in accordance with the law.
So, The agencies that carry out administrative procedures for foreign investors’ investment projects?
Investment policy decision-making body: National Assembly; Prime Minister; People’s Committees of provinces and cities.
So, Investment registration certificate-issuing agency: Provincial Department of Planning and Investment; city.
So, When does the investment registration certificate for investment projects subject to the decision on investment policy is issued?
Within 5 working days; from the date of receipt of the decision on investment policy. The investment registration authority must issue the Investment Certificate to the investor.
See more
Procedures for buying company shares in Vietnam by foreigners
What is offshore company? Procedures for setting up an offshore company
Conclusion: So the above is Investment license application service for foreign investors. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
