Procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam?
- What are the procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam?
- Can the procedures for granting a license to a microfinance institution that is a multi member limited liability company be implemented online?
- What is the application for a license for a microfinance institution that is a multi member limited liability company in Vietnam?
- How much is the fee for carrying out the procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam?
What are the procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam?
Pursuant to Section 2, Appendix II, Administrative procedures promulgated together with Decision No. 658/QD-NHNN in 2023 as follows:
Step 1: The Preparatory Board prepares 01 (one) set of application documents for approval in principle and sends it to the State Bank of Vietnam.
Step 2: Within 10 (ten) days from the date of receipt of the application for approval in principle, the State Bank of Vietnam shall send a document to the Preparatory Board confirming that all valid documents are complete; In case the dossier is incomplete, the State Bank of Vietnam shall make a written request for supplementation and completion.
Step 3: Within 05 (five) working days from the date of receiving a written confirmation of receipt of complete and valid dossiers, the State Bank of Vietnam shall send a written request for comments from:
+ The People's Committee of the province or centrally run city where the microfinance institution intends to locate its head office on the establishment of the microfinance institution;
+ The People's Committee of the province or centrally run city where the founding member implements the microfinance program or project on on the operational effectiveness of microfinance programs and projects for local development;
+ State Bank of Vietnam branch where the microfinance institution intends to locate its head office on the establishment of the microfinance institution, the list of personnel expected to be elected and appointed as the Chairperson and members of the Board of Members, head of the Board and members of the Supervisory Board, the General Director (Director) of the microfinance institution (if necessary);
+ Ministry of Foreign Affairs, Ministry of Public Security on participation in capital contribution to establish microfinance institutions of foreign banks.
Step 4: Within 15 (fifteen) days from the date of receiving the written request of the State Bank of Vietnam, the units that are consulted shall have written opinions.
Step 5: Within 80 (eighty) days from the date of receipt of complete and valid dossiers, the State Bank of Vietnam shall issue a written approval in principle for the establishment of a microfinance institution and the list of personnel to be elected and appointed as the Chairperson and members of the Board of Members, the Head and members of the Supervisory Board, the General Director (Director) of the microfinance institution. In case of disapproval, the State Bank of Vietnam shall send a document to the Preparatory Board, clearly stating the reason.
Step 6: Within 60 (sixty) days from the date of receipt of the written approval in principle for the establishment of a microfinance institution, the Preparatory Board shall compile a dossier of application for a License and send it to the State Bank of Vietnam. Past this time limit, if the State Bank of Vietnam does not receive or receives incompletely the application for a License, the written approval in principle is no longer valid.
Step 7: Within 02 (two) working days from the date of receipt of a complete application for a License, the State Bank of Vietnam shall certify in writing that the application has been fully received.
Step 8: Within 30 (thirty) days from the date of receipt of a complete application file for a License as prescribed in Step 6, the State Bank of Vietnam shall issue a License; in case of refusal to grant the License, the State Bank of Vietnam shall send a written explanation clearly stating the reason.
Procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam?
Can the procedures for granting a license to a microfinance institution that is a multi member limited liability company be implemented online?
Pursuant to Section 2, Appendix II of Administrative Procedures issued together with Decision No. 658/QD-NHNN in 2023:
Procedures for granting a license to a microfinance institution that is a multi member limited liability company are carried out through two methods:
- Headquarters of the State Bank of Vietnam (directly at the Receiving and Returning Department); or
- Postal services.
Therefore, it is not possible to carry out the procedures for granting a license to a microfinance institution that is a multi member limited liability company online.
What is the application for a license for a microfinance institution that is a multi member limited liability company in Vietnam?
Pursuant to Section 2, Appendix II of Administrative Procedures issued together with Decision No. 658/QD-NHNN in 2023, the application for a license for a microfinance institution that is a multi member limited liability company includes:
(1) Dossier of application for approval in principle:
- An application form for a License signed by the founding members;
- Draft charter of microfinance institution;
- The proposal for the establishment of a microfinance institution signed by the head of the Preparatory Committee, which includes at least the following contents:
(i) The necessity of establishment and operation objectives of the microfinance institution; expected social impacts of microfinance institutions in the locality;
(ii) The name of the microfinance institution, the expected area of operation, the expected location of the head office, the charter capital upon establishment, the operation contents;
(iii) Products and services expected to be provided to customers;
(iv) Organizational structure;
(v) Expected list of personnel with detailed description of professional qualifications and work experience to meet the requirements of each position and title:
+ Chairperson, members of the Board of Members; Heads of Committees under the Board of Members;
+ Head, member, full-time member of the Supervisory Board;
+ General Director (Director), Deputy General Directors (Deputy Directors), Chief Accountant and heads of affiliated units in the organizational structure;
(vi) Expected financial investment for the information technology system and the application of information technology;
(vii) It is expected that the internal control and audit system will be in accordance with the provisions of the Law on Credit Institutions, including at least operating principles and draft internal regulations specified in Clause 2, Article 93. Law on credit institutions, draft regulations on organization and operation of Board of Members, Supervisory Board, General Director (Director);
(viii) The proposed business plan for the first 03 (three) years, which must include at least the following contents: Market analysis, strategy and business plan; Projected financial statements for each year (balance sheet, income statement, statement of cash flows, minimum capital adequacy ratio, performance indicators and disclosures) ability to fulfill financial targets in each year);
- Dossiers of persons expected to be elected or appointed as members of the Board of Members, members of the Supervisory Board, the General Director (Director) of the microfinance institution, including:
(i) Curriculum Vitae;
The certification of resumes of organizations and individuals is carried out on the basis of exploiting citizens' residence data on the National Population Database or checking the VNeiD application under the guidance of the Ministry of Public Security; does not require organizations and individuals to submit or present paper household registration books and temporary residence books in accordance with regulations.
(ii) Judicial record card of the personnel to be elected or appointed, which must contain full information on criminal convictions (including expunged and unerased criminal convictions) and information on prohibition from undertaking positions, establishment and management of enterprises and cooperatives;
For personnel without Vietnamese nationality: A criminal record card or an equivalent document (including criminal records that have been erased and criminal records have not been erased and information on prohibition from holding certain positions, establishing and managing enterprises or cooperatives) must be issued by the competent authority of the country in which the foreigner resides before coming to Vietnam. In case a foreigner currently resides in Vietnam for full 06 (six) months or more, a judicial record card issued by a competent agency in the place where the foreigner is temporarily residing.
A criminal record card or equivalent document must be issued by a competent authority up to 06 (six) months before the time the microfinance institution submits its application for approval of the expected list of personnel;
(iii) A declaration of persons related to the personnel to be elected or appointed under;
(iv) Copy of ID card or citizen identification card or passport;
(v) Copies of professional qualifications and certificates;
(vi) Other documents proving the satisfaction of conditions and standards as prescribed;
(vii) In case the person expected to be elected or appointed as a member of the Board of Members, member of the Supervisory Board, the General Director (Director) of the microfinance institution does not have Vietnamese nationality, in addition to the official documents The above document must contain a written commitment to fully meet the conditions to reside and work in Vietnam;
- The list of founding members signed by the School of Preparatory School, which includes the following contents: full name (for founding members being individuals), name of the organization, level of capital contribution (specify the amount equal to VND, in other assets and capital contribution ratio of each member), capital contribution plan (specifying method and progress of capital contribution);
- Profile of the founding member being an organization:
(i) Establishment license or enterprise registration certificate or equivalent document;
(ii) Written commitment of capital contributors to contribute capital to the microfinance institution on schedule and at the level of contributed capital and to take responsibility for the legitimacy of the contributed capital source;
(iii) Charter of the organization contributing capital to establish a microfinance institution;
(iv) A written authorization of the representative of the contributed capital at the microfinance institution in accordance with the law;
(v) A copy of the identity card or citizen identification card or passport of the legal representative of the organization contributing capital to establish the microfinance institution and the representative of the contributed capital of that organization at a microfinance institution;
(vi) Audited financial statements of the year immediately preceding the year in which the application for a license is submitted and the latest financial statements (interim financial statements or unaudited annual reports) up to the time of submitting the application for a License;
(vii) Report on operation for 02 (two) years immediately preceding the year in which the application for a license is submitted by a capital contributor who is not an enterprise;
(viii) Documents proving that he has been or is participating in the management of a microfinance program or project and the operational efficiency of that program or project;
(ix) In addition to the documents mentioned above, the organization being a foreign bank must provide additional documents from the competent authority of the country of origin providing information about the foreign bank as follows:
+ Contents of activities permitted in the country of origin at the time of submitting the application for a license;
+ Compliance with the law on banking activities in 05 (five) years immediately preceding the year in which the application for a License is submitted and up to the time of submission of the application for a License;
- Profile of founding members who are individuals:
(i) Curriculum Vitae;
The certification of resumes of organizations and individuals is carried out on the basis of data extraction of citizens' residence on the National Database on Population or checking the VNelD application according to the guidance of the Ministry of Public Security; does not require organizations and individuals to submit or present paper household registration books and temporary residence books in accordance with regulations.
(ii) Judicial record, which must contain full information on criminal convictions (including expunged and unexpired criminal convictions) and information on prohibition from holding certain positions, establishment and management of enterprises, Cooperative;
A criminal record card or equivalent document must be issued by a competent authority up to 06 (six) months before the time the microfinance institution submits its application for approval of the expected list of personnel. ;
(iii) Copy of ID card or citizen identification card;
(iv) Written commitment to contribute capital to the microfinance institution on schedule and take responsibility for the legality of the contributed capital;
- Minutes of the founding members' meeting on the establishment of the Preparatory Board, the Head of the Preparatory Committee, approving the draft Charter, the scheme on the establishment of the microfinance institution, the list of expected management, executive and control titles.
(2) Dossier of application for a license:
- The charter of the microfinance institution approved by the Board of Members;
- Minutes of the first capital contributing member meeting;
- Minutes of the Board of Members meeting to approve the contents of the election of the Chairperson of the Board of Members; Minutes of the Supervisory Board meeting on the election of the Head of the Control Board;
- Decision of the Board of Members on the appointment of the General Director (Director), Deputy General Director (Deputy Director), Chief Accountant
How much is the fee for carrying out the procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam?
Pursuant to Section 2, Appendix II of Administrative Procedures issued together with Decision No. 658/QD-NHNN in 2023, the fee for procedures for granting a license to a microfinance institution that is a multi member limited liability company in Vietnam is VND 200,000.
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