The change of the Investment Law 2020 has made investors into Vietnam more and more in the past. So, LSX Lawfirm will give you an article about: “Procedures after business establishment for a 100% foreign-owned company” as follows:
Law on investment 2020
Law on enterprises 2020
The company with 100% foreign capital means?
Accordingly, a Company with 100% foreign-owned company capital is an enterprise foreign investors owned and established in Vietnam. Foreigners are responsible for their own management and self-responsibility for business results.
Related article: Service of applying for an investment license for foreign investors
Procedures after business establishment for a 100% foreign-owned company
1. Procedure for bank account
For companies with 100% foreign capital, note that opening a bank account is required to open:
- Capital account: For foreign investors to make capital contribution.
- Trading account of the company: For the company to perform trading activities such as receiving contributed capital from the transferred capital account and other transactions as prescribed by law.
Note: Foreign investors do not make direct capital contributions to the company’s trading account but must go through the capital account.
2. Electronic signature procedures:
Accordingly, carry out the application procedures to purchase and activate digital signatures. This is a mandatory procedure for a 100% foreign owned company to carry out tax procedures in accordance with the tax laws in Vietnam.
3. Invoice procedures:
Register and issue invoices in the appropriate accounting form before use.
Related questions about procedures after business establishment for a 100% foreign-owned company
Cases needing to apply for an Investment Certificate
a) Firstly, Investment projects of foreign investors
b) Secondly, Investment projects of economic organizations
The National Assembly’s power to approve investment guidelines?
Investment projects that:
- Exert great effects or potentially serious effects on the environment.
- Require repurposing of land meant for wet rice cultivation during with 02 or more crops of at least 500 hectares.
- Then, Investment projects that require relocation of 20,000 people or more in mountainous areas or 50,000 people or more in other areas.
- Finally, require application of a special mechanism or policy that needs to be decided by the National Assembly.
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Hope this article: “Procedures after business establishment for a 100% foreign-owned company” is useful for you.