Procedures for increasing or decreasing investment capital of foreign company

by HaTrang

Foreign companies can increase capital contributed to the project implementation in the form of owners contributing additional capital, shareholder members contributing more capital to the company, converting borrowed capital into contributed capital and when increasing contributed capital. The implementation of the project does not require the enterprise to register to increase its charter capital; but depends on the capital use demand of the enterprise. Below are some sharing of LSX Lawfirm on procedures for increasing or decreasing investment capital of foreign company for your reference.

Legal grounds

Investment Law 2020

Procedures for increasing or decreasing investment capital of foreign company

Step 1 : Apply for an adjusted investment policy decision

Please approve the policy of investment registration certificate adjusted due to the change of project investment capital if the project is in the case of applying for investment policy.

Step 2 : Adjust the investment registration certificate

– Adjustment of the investment registration certificate; due to the registration of an increase in contributed capital for the implementation of the project or accompanied by an increase in the contributed capital of the project together; with the change of other contents on the investment registration certificate

– If the capital contribution has increased due to the acceptance of new investors; the enterprise needs to apply for the approval of the Investment Planning Department on the foreign investors’ additional capital contribution or purchase of shares offered for sale by the company

Step 3 : Carry out procedures for changing business registration contents

Due to change in charter capital (if there is any change in charter capital).

Accordingly current regulations, the time to process the investor’s capital change dossier is 15-20 working days, in case of having to apply for a decision on investment policy, the processing time will take about 15-20 working days, depending on the province and city and time to change business registration certificate 3-5 working days.

Documents required when carrying out procedures to increase capital of foreign capital companies

– Minutes of the meeting, the company’s decision on the change of the foreign company’s capital.

– Written request for adjustment of investment project

– Proposing investment projects

– Audited financial statements for the most recent year.

– Documents proving the investor’s financial capacity

– Papers on capital contribution, purchase of shares offered for sale or undistributed profits converted into charter capital, contributed capital for project implementation.

– Other documents, depending on the relevant contents in the dossier.

If you have any questions please contact Lawyer X for quick and best legal services: +84846175333 or email: hoangson@lsx.vn.

Related questions

In which cases, investors must carry out the procedures to apply for an investment certificate?

Firstly, Investment projects of foreign investors;
Secondly, Investment projects of the following economic organizations: Having a foreign investor holding 51% or more of the charter capital or having the majority of general partners being foreign individuals; for economic organizations being a partnership; Having the above-mentioned economic organizations holding 51% or more of charter capital also; There are foreign investors and economic organizations specified as above holding 51% or more of charter capital.

After being granted an enterprise registration certificate, what should the enterprise do?

After being granted an enterprise registration certificate it must be publicly announced on the National Portal on business registration according to the order and procedures and must pay fees as prescribed. The content to be announced includes the contents of the Business Registration Certificate and the following information: Business; List of founding shareholders and shareholders being foreign investors for joint-stock companies.

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