Investors wonder which form to choose when investing in Vietnam. LSX Lawfirm will give you answer this question according to the article: “Investors choose the form of foreign investment in Vietnam, as follows;
Legal grounds
Law on investment 2020
Forms of investment means?
Forms of investment is a way of conducting investment activities of investors in accordance with the law. In the current legal system, investment forms have been unified into a common legal framework for both domestic and foreign investors. This comes from the deepening of Vietnam’s international economic integration.
Forms of investment when foreigners open a company in Vietnam
1. Investment in establishment of a business organization.
2. Investment in the form of capital contribution or purchase of shares or stakes.
3. Execution of an investment project.
4. Investment in the form of a business cooperation contract.
5. New forms of investment and types of business organizations prescribed by the Government’s regulations.
You can refer to article related to “Things to know when foreigners open a company in Vietnam’: Can foreigners set up businesses in Vietnam?
- Direct investment:
Accordingly, Investment in the form of establishing an economic organization with 100% foreign investment capital or establishing an economic organization with foreign investment capital (under 100% foreign capital). - Indirect investment:
So, Investment in the form of capital contribution, share purchase, purchase of capital contribution to economic organizations in Vietnam.
Investors choose the form of foreign investment in Vietnam
Choosing a very important form of investment should be based on the industry that the foreign investor wants to register. In addition, factors such as the location of the project, the size of the project to evaluate and select the appropriate plan. For this, foreign investors should have an appropriate legal consulting unit to make a reasonable choice for each specific case.
In addition, Foreign investors can completely choose to invest in the form of direct investment to establish an economic organization with 100% foreign capital for business lines that have been committed to opening up or in the form of capital contribution. equity or joint venture capital. This should be based on the needs of each foreign investor.
Related questions
Are foreign-invested companies eligible for investment incentives?
Yes. However, foreign-invested companies are 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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