How to establish a foreign-invested company? Let’s learn about investment procedures and procedures for establishing foreign-invested companies (FDI enterprises) in Vietnam. LSX Lawfirm will give you an article about: “Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam”, as follows:
Law on enterprises 2020
Law on investment 2020
What is foreign investment enterprise?
- Firstly, a foreign enterprise holding 51% or more of the charter capital of an enterprise or an economic organization is considered a foreign-invested enterprise.
Secondly, a foreign organization holds 51% of the charter capital of the enterprise.
Thirdly, an organization and a foreign investor hold 51% of the charter capital of the enterprise.
Related article: FDI enterprises have to audit financial statements in Viet Nam
How to establish a foreign-invested company (FDI)
According to the Investment Law 2020, foreign-invested enterprises; also known as FDI enterprises, can be established by one of two methods. (It also related to the procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam), as follows:
- Foreign investors directly establish or participate in the establishment of enterprises.
They contribute capital, purchase shares; or capital contributions in an enterprise with 100% capital owned by Vietnamese investors that has been formed before.
Foreign investors, when fully meeting the conditions prescribed by Vietnamese law; then have the right to invest in establishing economic organizations in Vietnam; or make investments in the form of capital contribution, purchase of shares; or capital contributions to a business organization. economic.
Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam
To invest in the establishment of a new enterprise that foreign investors participate in establishing; investors need to carry out the establishment procedures according to the following steps:
Step 1: Apply for an investment registration certificate
Before establishing an economic organization, a foreign investor must have an investment project; carry out procedures for issuance of an Investment Registration Certificate and obtain an Investment Registration Certificate from a competent authority.
Step 2: Establish a foreign-invested enterprise
Establish an enterprise with the business lines approved in the Investment Registration Certificate.
Step 3: Transfer capital contribution from abroad to Vietnam
Open an investment account at a commercial bank to transfer capital contributions from abroad into Vietnam.
This is the most used way by foreign investors when investing in Vietnam.
Related questions about “Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam”
The parties in FDI investment?
In essence, FDI is the meeting of the needs of two parties one side is the investor and the other side is the country receiving the investment
The management of FDI enterprises?
FDI enterprises have direct participation in the management of foreign countries; the management right depends on the capital contribution ratio between the two parties. However, when investing in Vietnam they are all Vietnamese legal entities, born, operates and is governed by many legal systems of Vietnam.
Contact LSX Lawfirm
Finally, hope this article is useful for you to answer the question about: “Procedures for setting up a foreign-owned enterprise/company account for 1% to 100% in Vietnam”, please contact LSX Law firm : +84846175333 or Email: email@example.com