Stemming from the needs of customers, the financial-credit market is currently on the rise. Therefore, there are many financial companies that have been established and developed quite vibrantly. So, to help you catch up with the law in a timely manner; In the following article, Lawyer X will share with you the process of establishing a financial company in detail as follows:
Legal grounds:
Law on Credit Institutions Amended in 2017
Decree No. 39/2014/ND-CP
Decree No. 86/2019/ND-CP
Circular No. 51/2018/TT-NHNN
Conditions for establishing a financial company as prescribed by law
As a Credit Institution, a financial company must meet the following general conditions:
A credit institution may be granted a License when it fully meets the following conditions:
a) Having charter capital, the allocated capital is at least equal to the legal capital;
b) The owner of the credit institution is a one-member limited liability company, the founding shareholders and founding members are legal entities operating legally; and have sufficient financial capacity to contribute capital; founding shareholders or founding members are individuals with full civil act capacity; and have sufficient financial capacity to contribute capital.
c) Managers, executives and members of the Supervisory Board fully meet the criteria and conditions as prescribed by law.
d) Besides, having a Charter consistent with the provisions of this Law, and other provisions of relevant laws;
e) Certainly, having a feasible establishment plan and business plan; does not affect the safety and stability of the credit institution’s system; does not create a monopoly or restrict competition; or unfair competition in the organizational system.
Joint venture credit institutions, 100% foreign-owned credit institutions; License granted when the following conditions are fully satisfied:
a) Above all, the conditions specified in Clause 1 of this Article;
b) Secondly, foreign credit institutions are allowed to conduct banking activities; in accordance with the law of the country where the foreign credit institution is headquartered;
c) Then, activity expected to apply for a permit to perform in Vietnam must be the activity that the foreign credit institution is currently permitted to conduct in the country where the foreign credit institution’s head office is located;
d) The foreign credit institution must have a healthy operation and satisfy the conditions on total safe assets as prescribed by the State Bank;
e) Not last, the foreign credit institution must make a written commitment to provide financial, technological, administrative, operating and operational support to the joint-venture credit institution or the 100% foreign-owned credit institution; ensure that these organizations maintain the actual value of their charter capital not less than the legal capital level and comply with the provisions on safety assurance of this Law;
f) A competent foreign agency has signed an agreement with the State Bank on banking inspection and supervision; exchange of banking safety supervision information; and has a written commitment to supervise the consolidation in accordance with international practices for the operations of the foreign credit institution.
About minimum capital
According to Decree No. 86/2019/ND-CP stipulating the legal capital level of credit institutions, foreign bank branches; Legal capital for financial companies is VND 500 billion.
In addition, depending on the type of financial company, there are specific conditions that need to meet.
Types of financial companies
– State-owned finance company: a finance company invested by the state, established and organized to manage business activities.
– Joint Stock Finance Company: A finance company jointly contributed capital by organizations and individuals, established and organized to manage business activities.
– Finance company affiliated to a credit institution: a finance company established by a credit institution with its own capital; and be the owner in accordance with the law; Independent accounting and legal person
– Joint Venture Finance Company: An established Finance Company; by capital contribution between the Vietnamese party and the foreign party, on the basis of a joint venture contract.
Contrarily, finance company with 100% foreign capital: a finance company established with the capital of one or more foreign credit institutions in accordance with the laws of Vietnam.
Related article:
What do you need to establish a company in Vietnam?
Conditions for securities company establishment in Vietnam
Frequently asked questions
– Business registration fee: according to Circular 47/2019/TT-BTC; The first-time business registration fee is 50,000 VND/time.
– Fee for publication of business registration content: According to the provisions of Circular 47/2019/TT-BTC; The fee for publishing the contents of business registration is 100,000 VND/time.
– In addition, there are some other costs such as: the cost of engraving the corporate seal; company registration fee; buy digital signature to pay taxes online
Usually after 03 – 05 days from the date of receiving complete and valid dossiers; The Business Registration Office will issue a Business Registration Certificate for your company.
However, in practice, it may take 1-2 weeks depending on whether your application is valid or not.
Services provided by Lawyer X.
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Besides, with the motto “Getting a lawyer right at your fingertips”, we ensure that the service always performs on time.
Cost: Moreover, Lawyer X’s service costs are highly competitive and costs that guaranteed to be the most suitable and economical for customers.
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