Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam

How to establish a foreign-invested company? Let’s learn about investment procedures and procedures for establishing foreign-invested companies (FDI enterprises) in Vietnam. LSX Lawfirm will give you an article about: “Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam”, as follows:

Legal grounds

Law on enterprises 2020

Law on investment 2020

What is foreign investment enterprise?

• Firstly, a foreign enterprise holding 51% or more of the charter capital of an enterprise or an economic organization is considered a foreign-invested enterprise.
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  Secondly, a foreign organization holds 51% of the charter capital of the enterprise.
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  Thirdly, an organization and a foreign investor hold 51% of the charter capital of the enterprise.

Related article: FDI enterprises have to audit financial statements in Viet Nam

What is an FDI enterprise? The role of FDI in Vietnam’s economy

How to establish a foreign-invested company (FDI)

According to the Investment Law 2020, foreign-invested enterprises; also known as FDI enterprises, can be established by one of two methods. (It also related to the procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam), as follows:

• Foreign investors directly establish or participate in the establishment of enterprises.
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  They contribute capital, purchase shares; or capital contributions in an enterprise with 100% capital owned by Vietnamese investors that has been formed before.
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  Foreign investors, when fully meeting the conditions prescribed by Vietnamese law; then have the right to invest in establishing economic organizations in Vietnam; or make investments in the form of capital contribution, purchase of shares; or capital contributions to a business organization. economic.

Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam

To invest in the establishment of a new enterprise that foreign investors participate in establishing; investors need to carry out the establishment procedures according to the following steps:

Step 1: Apply for an investment registration certificate
Before establishing an economic organization, a foreign investor must have an investment project; carry out procedures for issuance of an Investment Registration Certificate and obtain an Investment Registration Certificate from a competent authority.

Step 2: Establish a foreign-invested enterprise
Establish an enterprise with the business lines approved in the Investment Registration Certificate.

Step 3: Transfer capital contribution from abroad to Vietnam
Open an investment account at a commercial bank to transfer capital contributions from abroad into Vietnam.

This is the most used way by foreign investors when investing in Vietnam.

Related questions about “Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam”

The parties in FDI investment?

In essence, FDI is the meeting of the needs of two parties one side is the investor and the other side is the country receiving the investment

The management of FDI enterprises?

FDI enterprises have direct participation in the management of foreign countries; the management right depends on the capital contribution ratio between the two parties. However, when investing in Vietnam they are all Vietnamese legal entities, born, operates and is governed by many legal systems of Vietnam.

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