Have you heard of the BBC business partnership? To learn more about this type of BBC contract, then please refer to the article below with LSX Lawfirm. We will give you the answer according to: ” What foreign investors need to know about BCC contract “, as follows:
Legal grounds
Law on investment 2020
What is a BCC contract?
BCC contract means “Business Cooperation Contract” is a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization.
What foreign investors need to know about BCC contract
Contents of a business cooperation contract
A business cooperation contract shall contain at least:
- Firstly; Names, addresses and authorized representatives of parties to the contract; business address or project address.
- Secondly; Objectives and scope of business.
- Thirdly; Contributions by the parties to the contract, and distribution of business investment results between the parties.
- Next; Schedule and duration of the contract.
- Then; Rights and obligations of parties to the contract.
- Adjustment, transfer and termination of the contract.
- Finally; Responsibilities for breaches of the contract; method of dispute settlement.
During the execution of a business cooperation contract, parties may reach an agreement on using assets derived from the business cooperation to establish an enterprise in accordance with regulations of law on enterprises.
The parties to a business cooperation contract are entitled to agree upon other items which are not contrary to law.
Investment in the form of BCC contract
Firstly; Business cooperation contracts signed between domestic investors shall be executed in accordance with the civil law.
Secondly; Procedures for issuance of investment registration certificates in Article 38 of Law on Investment 2020. Then, you shall apply to business cooperation contracts signed between a domestic investor and a foreign investor, or between foreign investors.
Thirdly; Parties to a business cooperation contract shall establish a coordinating board to execute the BBC. Then Functions, tasks and powers of the coordinating board shall be agreed upon by the parties.
Related article: Procedures for setting up an executive office for a BCC contract in Vietnam
Termination of the operation executive offices in BCC contracts in Vietnam
Related questions about ” What foreign investors need to know about BCC contract “
Yes, they can. Because operating executive office under BCC contract is the investors’ right. Thereby, they can cancel it if it is not necessary
Accordingly, there are 3 other ways: PPP contract; capital contribution, purchase of shares, purchase of contributed capital; establishment of an economic organization.
Foreign investment means that organizations and individuals of one country bring capital in different forms into another country to conduct business activities for profit. Foreign investment is made in the form of direct investment or indirect investment.
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