Today, LSX Lawfirm will give you an article about: “License to invest abroad in accordance with Vietnamese law”, as follows:
Legal grounds
Law on investment 2020
Decree No. 31/2021/ND-CP
What is an offshore investment license?
Outward investment license is a document issued by a competent state agency to an investor to transfer investment capital from Vietnam to a foreign country, using the profits obtained from this investment capital for investment purposes. conduct business investment activities in foreign countries. When these investors meet the conditions for licensing offshore investment as prescribed by law.
Accordingly, the provisions of the Investment Law 2020 (Article 52), there are currently 4 forms of investment. Investors will be able to conduct offshore investment activities in these forms, specifically:
- The investor establishes an economic organization in accordance with the law of the host country;
- Then Investors may make investments in the form of contracts abroad;
- Investors contribute capital, purchase shares or purchase capital contributions of an overseas economic organization to participate in the management of such economic organization;
- Then buy and sell securities and other valuable papers or invest through securities investment funds or other intermediary financial institutions in foreign countries;
In addition, investors can also choose other forms of investment (if any) in accordance with the law of the host country.
Current legal documents on offshore investment licenses
- Investment Law 2020 (Effective from January 1, 2021)
- Decree No. 31/2021/ND-CP
- International treaties to which Vietnam is a signatory and the law of the host country
Conditions for issuance of offshore investment licenses
To be granted a license, an investor must meet the following conditions:
Firstly
The outward investment activities carried out by investors must conform to the general principles specified in Article 51 of the Law on Investment 2020.
Secondly
Conditions on industries to invest abroad
So, Business lines not on the list of industries banned from overseas investment (drugs specified in the Appendix to the Investment Law 2020, firecracker business, debt collection service business,…). The industries banned from investment are specified in Article 6 of the Law on Investment 2020.
Refer to the article: Prohibited industries to invest in
When applying for a foreign investment license, investors need to meet the conditions for conditional outward investment industries (Article 54).
Conditional investment industries include: insurance; stock; broadcasting press; Real estate business.
Thirdly
The third condition is that the investor must have a commitment to arrange foreign currency by himself or must have a commitment to arrange foreign currency to conduct offshore investment activities of an authorized credit institution.
Fourthly
There has been a decision to invest abroad
So, the decision to invest abroad is specified in Article 59 of the Law on Investment.
There is a document from the tax authority certifying the fulfillment of the tax payment obligation of the investor. The time of certification by the tax authority is not more than 03 months from the date of submission of investment project dossiers.
Fifthly
Conditions on tax payment obligations
You can also refer to the article related to Investment Registration Certificate Renewal Service in Vietnam, What is an investment certificate?, The power to issue investment registration certificates; Contents of investment registration certificate; Service of applying for an investment registration certificate in Vietnam, or Issuance of investment registration certificates for projects not subject to decision on investment policies.
Related questions about License to invest abroad in accordance with Vietnamese law
In order to be granted a foreign investment license, an investor needs to submit an application for a license, the components of which include:
Documents of registration of outward investment; (apply for an offshore investment license)
Documents on the investor’s legal status;
– Decision on offshore investment (defined in Article 59 of the Law on Investment);
A written commitment to self-balance foreign currency sources or a written commitment to arrange foreign currency for investors of a credit institution.
(The investor commits to arrange foreign currency by himself or commits to arrange foreign currency to carry out offshore investment activities of an authorized credit institution).
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