LSX Lawfirm will guide how to prove financial capacity for foreign investors when carrying out the procedures to apply for an Investment Registration Certificate for a foreign company in Vietnam for your reference.
Investment Law 2014
When do foreign investors have to prove their financial capacity?
The Investment Law 2014 stipulates that investors must comply with the registered capital contribution schedule and project implementation schedule when applying for an investment registration certificate. This basis is also the reason why the DPI / Industrial Park Management Board requires investors to prove their financial capacity to present the content of registration for the issuance of the Investment Registration Certificate. Therefore, the obligation to prove financial capacity arises from two cases:
Firstly, when foreign investors carry out procedures to apply for an Investment Registration Certificate to establish a foreign-owned company in Vietnam.
Secondly, when a foreign-owned company requests to amend the investment registration certificate due to an increase in capital; additional capital contribution or an application for an Investment Registration Certificate for a new project.
In both cases, investors need to understand that documents proving financial capacity must be consistent with the content and list of documents submitted for investment registration. From this conformity requirement; it leads to the decision of what document to prove the financial capacity is; the possibility of being approved is high or low.
Dossier for establishing a foreign-owned company
- Firstly, written proposal, proposal for implementation of an investment project
- Secondly, a notarized copy of the individual investor’s passport – For institutional investors, it is necessary to prepare: Copy of consular legalization Certificate of establishment, business registration or equivalent document certifying the investor’s legal status.
- Thirdly, notarized passport of the legal representative of the company. If the representative is a foreigner; a notarized copy is required; consular legalized at the Vietnamese diplomatic mission abroad.
- Fourthly, documents to rent the company’s head office
- Lastly, documents proving the financial capacity of the investor
List of documents proving acceptable financial capacity
For individual investors, prove financial capacity through the investor’s bank account balance opened abroad or an account at a Vietnamese bank.
For institutional investors, the financial proof is through one of the following documents: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; financial institution’s commitment to financial support; guarantee on the financial capacity of the investor; documents explaining the financial capacity of the investor;
In some cases, the lawyer based on the project implementation practice to explain the reason why there is no obligation to prove the financial capacity of the investor to make the preparation of documents easier.
Time to consider granting investment registration certificate
Within 15 days from the day; on which the complete application is received; the investment registration authority shall issue the Investment Registration Certificate; In case of refusal, the investor must be notified in writing and clearly state the reasons therefor.
100% foreign-invested enterprise means an enterprise; with 100% capital investment by foreign investors to establish and operate in Vietnam.
To establish a 100% foreign-invested enterprise, a foreign investor must apply for an Investment Certificate and send this dossier to the Investment Certificate-issuing agency.