Do foreigners establish enterprises in Vietnam have to have investment registration certificates?
Do foreigners establish enterprises in Vietnam have to have investment registration certificates? What do contents of investment registration certificate in Vietnam comprise?
Hello, I would like to ask the following question. I have a friend who is a foreigner and he plans to establish a business in Vietnam. Please ask, when he establishes a business in Vietnam, does he have to apply for an investment registration certificate?
1. Do foreigners establish enterprises in Vietnam have to have investment registration certificates?
Pursuant to Clause 1, Article 22 of the Investment Law 2020, every investor shall establish a business organization in accordance with the following regulations:
a) A domestic investor shall establish a business organization in accordance with regulations of law on enterprises and law corresponding to each type of business organization;
b) A foreign investor that establishes a business organization shall satisfy market access conditions applied to foreign investors specified in Article 9 of this Law;
c) Before establishing a business organization, the foreign investor must have an investment project and follow the procedures for issuance or adjustment of an investment registration certificate, except for establishment of a small and medium-sized start-up enterprise and a startup investment fund in accordance with regulations of the Law on Small and Medium-sized Enterprises.
Thus, according to the above regulations, when your foreign friend wants to set up a business in Vietnam, he must go through the procedures to apply for an investment registration certificate, except for establishment of a small and medium-sized start-up enterprise and a startup investment fund in Vietnam.
2. What do contents of investment registration certificate in Vietnam comprise?
Article 40 of the Investment Law 2020 provides that contents of investment registration certificate in Vietnam are as follows:
1. Name of the investment project.
2. The investor.
3. Investment project code.
4. Location and land area of the investment project.
5. Objectives and scale of the project.
6. Capital investment in the investment project (including the investor's contributed capital and raised capital).
7. Duration of the investment project.
8. Project execution schedule, including:
a) Capital contribution and capital raising schedule;
b) Schedule of achievement of primary operational objectives of the investment project; execution schedule of each stage (if the project is divided into multiple stages);
9. Investment incentives or investment assistance, and bases or conditions for application thereof (if any).
10. Conditions applied to the investor executing the investment project (if any).
According to this Article, investment registration certificate in Vietnam will include the contents as prescribed above.
Best Regards!
