To reduce 50% of the fees for licensing the establishment and operation of credit institutions in Vietnam? How long is the duration of reduction?
- To reduce 50% of the fees for licensing the establishment and operation of credit institutions in Vietnam? How long is the duration of reduction?
- How long is the duration to reduce the fees for licensing the establishment and operation of credit institutions in Vietnam?
- How much will the fees for licensing the establishment and operation of credit institutions in Vietnam after January 1, 2024 be?
- What are the conditions for licensing the establishment and operation of credit institutions in Vietnam?
To reduce 50% of the fees for licensing the establishment and operation of credit institutions in Vietnam? How long is the duration of reduction?
Pursuant to No. 2, Clause 1, Article 1, Circular 44/2023/TT-BTC specifies the collection rates of a number of fees and charges to support people and businesses, including:
(1) Fees for licensing the establishment and operation of banks
Equal to 50% of the fees prescribed in Point a Section 1 of the Fee Schedule in Clause 1 Article 4 of Circular No. 150/2016/TT-BTC on providing for fees for issuance of the license for establishment and operation of credit institutions; the license for establishment of foreign banks’ branches, representative offices of foreign credit institutions or other foreign organizations having banking activities; the license for provision of intermediary payment services by non-bank institutions, and the collection and transfer thereof.
Accordingly, the fees for licensing the establishment and operation of banks are as follows:
Initial issuance | VND 70,000,000/license |
Replacement, addition or renewal of license | VND 35,000,000/license |
(2) Fees for licensing the establishment and operation of non-bank credit institutions
Equal to 50% of the fees prescribed in Point b Section 1 of the Fee Schedule in Clause 1 Article 4 of Circular No. 150/2016/TT-BTC.
Initial issuance | VND 35,000,000/license |
Replacement, addition or renewal of license | VND 17,500,000/license |
How long is the duration to reduce the fees for licensing the establishment and operation of credit institutions in Vietnam?
Pursuant to Clause 1, Article 1, Circular 44/2023/TT-BTC stipulates that the duration to reduce the fees for licensing the establishment and operation of credit institutions is from July 1, 2023 to the end of December 31, 2023.
To reduce 50% of the fees for licensing the establishment and operation of credit institutions in Vietnam? How long is the duration of reduction?
How much will the fees for licensing the establishment and operation of credit institutions in Vietnam after January 1, 2024 be?
Pursuant to Clause 2 and Clause 3, Article 1 of Circular 44/2023/TT-BTC stipulates as follows:
Fees and charges to support the people and enterprises
...
2. From July 1, 2024, the collection of the fees mentioned above shall be in compliance with original Circulars or amendment or replacement Circulars (if any).
Accordingly, fees for licensing the establishment and operation of credit institutions after January 1, 2024 comply with the provisions of Circular No. 150/2016/TT-BTC, specifically as follows:
No. | Kinds of fees | Unit | Fee (VND) |
1 | Fees for issuance of the license for establishment and operation of a credit institution | ||
a | Fees for issuance of the license for establishment and operation of a bank | ||
Initial issuance | 01 license | 140.000.000 | |
Replacement, addition or renewal of license | 01 license | 70.000.000 | |
b | Fees for issuance of the license for establishment and operation of a non-bank credit institution | ||
Initial issuance | 01 license | 70.000.000 | |
Replacement, addition or renewal of license | 01 license | 35.000.000 |
Note: Aside from the rate of collection of fees and charges prescribed in the above Schedule, original Circulars and other legislative documents shall apply to contents on the scope and regulated entities; collectors; payers; cases of exemption from paying fees and charges; declaration and payment of fees and charges; collection rates of fees and charges; management and use of fees and charges; collection receipts and disclosure of regulations on the collection of fees and charges not regulated in this Circular.
What are the conditions for licensing the establishment and operation of credit institutions in Vietnam?
Pursuant to the provisions of Article 20 of the Law on Credit Institutions 2010, specifically as follows:
- A credit institution may obtain a license when fully meeting the following conditions:
+ Its charter or allocated capital is at least equal to the legal capital;
+ Its owner is a one-member limited liability company, its founding shareholders or members arc legal entities which arc lawfully operating and financially capable for capital contribution. Its founding shareholders or members arc individuals with full civil act capacity and financially capable for capital contribution.
The State Bank shall provide the conditions for owners of credit institutions being one-member limited liability companies and founding shareholders and members;
+ Its managers, executives and Control Board members fully meet the criteria and conditions under Article 50 of this Law;
+ Its charter complies with this Law and other relevant laws;
+ It has an establishment plan and a feasible business plan which neither affects the safety and stability of the credit institution system nor creates monopoly or restrict competition or create unfair competition within the credit institution system.
- A joint-venture or wholly foreign-owned credit institution may obtain a license when fully meeting the following conditions:
+ The conditions specified in Clause 1 of this Article;
+ The foreign credit institution may conduct banking operations under the law of the country in which it is headquartered;
+ The operations to be conducted in Vietnam are those the foreign credit institution is licensed to conduct in the country in which it is headquartered;
+ The foreign credit institution's operations are healthy and it meets requirements on total assets, financial status and safety ratios under the State Bank's regulations:
+ The foreign institution makes a written commitment to provide supports in finance, technology, governance, administration and operation for the joint-venture or wholly foreign owned credit institution- It guarantees that the joint-venture or wholly foreign-owned credit institution preserves the actual value of its charter capital not lower than the legal capital and observes regulations on safety assurance under this Law:
+ A competent foreign authority has signed an agreement with the State Bank on inspection and oversight of banking operations and exchange of information on banking safety oversight and made a written commitment on consolidated oversight of the foreign credit institution's operations according international practices.
- A foreign bank branch may obtain a license when fully meeting the following conditions:
+ The conditions specified at Points a. b, c and e, Clause 1, and Points b, c, d and f. Clause 2 of this Article;
+ The foreign bank makes a written commitment to be liable for all obligations and commitments of its branch in Vietnam: and to guarantee the actual value of the branch's allocated capital not lower than the legal capital and its observance of regulations on safety assurance under this Law.
- A foreign credit institution or another foreign institution engaged in banking operations may obtain a license for a representative office when fully meeting the following conditions:
+ It is a legal entity licensed for banking operations overseas;
+ Under the law of the country in which it is headquartered, it may set up a representative office in Vietnam.
- The State Bank shall provide licensing conditions for cooperative banks, people's credit funds and microfinance institutions.
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