Many foreign investors are about to enter Vietnam to set up a company but wonder what documents to prepare. LSX Lawfirm will give you an article about: “Documents for foreign investors need to prepare in Vietnam; as follows:
Law on investment 2020
Some definitions related to documents for foreign investors need to prepare in Vietnam
Foreign investor means an individual or organization as defined by the Law on Investment.
- Firstly, “Investor” means an organization or individual that carries out business investment activities. Investors include domestic investors, foreign investors and foreign-invested business organizations.
- Secondly, “Foreign investor” means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.
- Thirdly, “Domestic investor” means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors.
- Then, “Business organization” means an organization established and operating in accordance with Vietnam’s laws. Business organizations include enterprises, cooperatives, cooperative unions and other organizations that carry out business investment activities.
- Finally, “Foreign-invested business organization” means an organization whose members or shareholders are foreign investors.
Documents for foreign investors need to prepare in Vietnam
Application for establishment of a foreign-invested company in which foreign investors can choose one of the following two statuses to invest:
Option 1: Investor is a foreign economic organization (foreign company)
Need to prepare documents:
- Certificate of business registration or company establishment license, or equivalent legal document of the investor in a foreign country, this document is consular legalized used in Vietnam.
- Audited financial statement or bank account balance confirmation to prove financial capacity (need consular legalization used in Vietnam).
- Passport notarized copy of the representative of the foreign investor in Vietnam.
- Lease contract or agreement, memorandum of understanding on leasing the project location in Vietnam.
Note: Documents in a foreign language need to be notarized and translated in Vietnam to be used.
Option 2: The investor is an individual with foreign nationality
Passport notarized copy of investor
Certificate of bank account balance (overseas or in Vietnam) to prove financial capacity
Lease contract or agreement, memorandum of understanding on leasing the project location in Vietnam
In addition to the above-mentioned documents, foreign investors need to prepare documents, applications and project proposals according to the form prescribed in the registration offices of provinces and cities. Normally, foreign investors need to use legal consulting services to support these documents.
Are foreign-invested companies eligible for investment incentives?
Yes. However, foreign-invested companies only entitled to the same investment incentives as Vietnamese enterprises.What taxes must a foreign-invested company pay?
Like Vietnamese-owned enterprises, foreign-invested companies also have to pay some basic taxes as follows: Value-added tax, license tax, corporate income tax, import-export tax (if any) import and export activities). etc.
When is the establishment of a foreign-owned company required to issue an investment certificate?
When investors contribute capital at the beginning of company establishment from 1% to 100% of charter capital and when foreign investors purchase capital contribution, buy shares in Vietnamese companies operating in every field.
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