Foreign investors establish video game companies

With many preferential and supportive policies for foreign investors, in recent years, the number of foreign investors investing in Vietnam has been increasing. One of the industries often chosen by foreign investors is the video game business. In addition, video game business is one of the conditional business fields; so when foreign investors establish video game companies, they need to meet the requirements and conditions. To understand more about this issue as well as understand the process of setting up a company; please refer to the following article of LSX Law firm.

Legal grounds

Enterprise Law 2020

Decree 72/2013/ND-CP

Decree 103/2009/ND-CP

Conditions for foreign investor establishes a video game company

For the video game business; when foreign investors want to open a company, they will need to meet basic conditions including:

– Firstly, the rate of capital contribution to video game companies of foreign investors can only be at no more than 49%. Foreign entrepreneurs can make capital contributions at the rate of 1% – 49%. Because this field does not allow foreign investors to own more than 49% of the company’s shares; and contributed capital.

– Secondly, there are 2 methods for foreign investors to establish a video game company in Vietnam: Joint venture with an enterprise that has a license to trade in the field of video games in Vietnam form of transfer; purchase of shares or contributed capital. Or sign an investment contract from 1% to 49% of the capital in Vietnam to establish a foreign-invested video game company . That is, foreign investors cannot open 100% foreign-owned companies dealing in video games.

– Lastly, when trading in video games , businesses also need to comply with a number of other conditions such as quality assurance equipment, images suitable for Vietnamese culture, video games that do not violate prohibited regulations, healthy, operating time is only from 8am to 10pm; after 10pm, no more activities; In addition, need to be at least 200m from the school…

The process for foreign investors establish video game companies

Step 1: Register for an enterprise investment certificate

Accordingly the Law on Investment 2020, when investing to establish an enterprise, investors must register for investment in accordance with the investment law. Accordingly, before registering an enterprise, the investor shall submit 01 application for investment registration to the investment registration agency where the enterprise’s head office is located.

An application for investment registration includes:

• A written request for the implementation of an investment project;
• A copy of the identity card, identity card or passport for the investor being an individual; a copy of the Certificate of Establishment or other equivalent document certifying the legal status of the investor being an organization;
• Report on the financial capacity of the investor;
• Business cooperation contract for the form of investment under the business cooperation contract;
• Joint venture contract for the form of investment in the establishment of a joint-venture economic organization between a domestic investor and a foreign investor;

Dossier processing time: After receiving and considering the dossier, the Department of Planning and Investment shall issue the business registration certificate and investment certificate within 15 working days from the date of receipt of the complete dossier.

Step 2: Register your business

After receiving the investment certificate, the investor shall submit 01 application for enterprise registration to the Business Registration Office of the Department of Planning and Investment where the enterprise’s head office is located.

• Business registration application form;
• The company charter compiled by the enterprise;
• List of members or shareholders of the company; (if it is a limited liability company with two or more members or a joint stock company);
• Copies of personal identification papers for individual investors or papers certifying legal status for institutional investors;
• Copy of Investment Registration Certificate

Application processing time : 03 – 05 working days from the date of receipt of complete and valid dossiers. After receiving the Business Registration Certificate the enterprise must carry out the procedures for publishing the registered contents on the National Business Registration Portal.

Step 3: Engrave the seal and announce the seal sample

Enterprises conduct seal engraving and announce the use of seal samples on the National Portal. After receiving the notice on the seal sample, the Business Registration Office hands over the receipt to the enterprise; publishes the enterprise’s notice on the national business registration portal, and issues a notice on the business registration. Download information about the enterprise’s seal template for the business.

Besides, enterprises decide by themselves the number and form of seals within the scope permitted by law.

Hopefully, through the above article of LSX LAW FIRM will bring more useful information to individuals or investors who are planning to open a video game business. Contact us immediately for free consultation support from experts if you have any problems: 0833102102.

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