Application for licensing applicable to microfinance institutions being multiple-member limited liability companies in Vietnam

Application for licensing applicable to microfinance institutions being multiple-member limited liability companies in Vietnam (Internet image)

On June 30, 2024, the Governor of the State Bank of Vietnam issued Circular 33/2024/TT-NHNN providing regulations on applications, procedures for licensing applicable to microfinance institutions in Vietnam

Application for licensing applicable to microfinance institutions being multiple-member limited liability companies

Pursuant to Article 8 of Circular 33/2024/TT-NHNN, the application for licensing applicable to microfinance institutions being multiple-member limited liability companies in Vietnam is prescribed as follows:

- Dossier for Principle Approval:

+ Application for License according to the form in Appendix 01 issued together with Circular 33/2024/TT-NHNN;

+ Components of the dossier as prescribed in points b, c, and d clause 1, Article 7 of Circular 33/2024/TT-NHNN;

+ List of founding members signed by the Head of the Preparatory Committee, including the following contents:

(i)  Name  of  the  legal  entity;  license  number  for  establishment  or  enterprise  registration  certificate  or  equivalent  document;  personal  identification  number  (for  individuals  with  Vietnamese  nationality),  passport  number  or  equivalent  document,  date  of  issue,  place  of  issue,  nationality/nationalities  (for  individuals  without  Vietnamese  nationality)  of  the  legal  representative  of  the  legal  entity  participating  in  the  capital  contribution  to  establish  the  microfinance  institution  and  the  legal  representative  of  that  legal  entity  at  the  microfinance  institution;

(ii)  Capital  contribution  amount  (specify  the  amount  in  Vietnamese  dong  and  the  percentage  of  capital  contribution  of  each  member)

;(iii)  Capital  contribution  plan  (specify  the  method,  progress  of  the  capital  contribution);

+ Dossier of founding members, including:

(i)  License  for  establishment  or  enterprise  registration  certificate  or  equivalent  document;

(ii)  Document  of  the  capital-contributing  members  committing  to  contribute  capital  to  the  microfinance  institution  in  accordance  with  the  progress,  the  amount  of  capital  contribution  and  taking  responsibility  for  the  legality  of  the  capital  contribution  source;

(iii)  Charter  of  the  legal  entity  participating  in  the  capital  contribution  to  establish  the  microfinance  institution;(iv)  Document  authorizing  the  representative  of  the  capital  contribution  at  the  microfinance  institution  as  prescribed  by  law;

(v)  Copy  of  passport  or  equivalent  document  (for  individuals  without  Vietnamese  nationality)  of  the  legal  representative  of  the  legal  entity  participating  in  the  capital  contribution  to  establish  the  microfinance  institution  and  the  legal  representative  of  that  legal  entity  at  the  microfinance  institution;

(vi)  Audited  financial  statements  of  the  year  preceding  the  year  of  submitting  the  application  for  the  license  and  the  financial  statements  up  to  the  most  recent  time  (interim  financial  statements  or  unaudited  annual  reports)  at  the  time  of  submitting  the  application  for  the  license;

(vii)  Operation  report  for  the  2  years  preceding  the  year  of  submitting  the  application  for  the  license  for  capital-contributing  members  who  are  not  enterprises;

(viii)  Documents  proving  that  the  applicant  has  participated  or  is  participating  in  the  management  of  a  microfinance  program  or  project  and  the  effectiveness  of  that  program  or  project;

+ Minutes of the meeting of the founding members regarding the establishment of the Preparatory Committee, Head of the Preparatory Committee, approval of the draft charter, scheme to establish the microfinance institution, and the list of proposed management, executive, and control positions.

- Dossier for Issuing a License:

+ Charter of the microfinance institution approved by the Members' Council;

+ Minutes and Resolution of the first meeting of capital-contributing members on the approval of the Charter, election, appointment of members of the Members' Council, members of the Control Board, regulations on the organization and operation of the Members' Council, Control Board;

+ Minutes of the Members' Council meeting approving the contents on the election of the Chairman of the Members' Council; Minutes of the Control Board meeting regarding the election of the Head of the Control Board;

+ Decision of the Members' Council on the appointment of the General Director (Director), Deputy General Director (Deputy Director), Chief Accountant

Notifying Information regarding licensing to the business registration authority in Vietnam

- Within 15 days before the expected opening date, the microfinance institution granted the license must notify the branch of the State Bank where the microfinance institution is headquartered about the conditions for opening according to the provisions of the Law on Credit Institutions 2024 and the expected opening date.

- Within 3 working days from the opening date, the microfinance institution must send a written notification directly or via postal service to the Banking Supervision and Inspection Agency announcing the opening.

- Within 5 working days from the date of receipt of the written notification from the microfinance institution in clause 2, Article 10 of Circular 33/2024/TT-NHNN, the Banking Supervision and Inspection Agency is responsible for sending a written notification to the provincial business registration authority where the microfinance institution is headquartered to update the national enterprise registration information system.

(Article 10 of Circular 33/2024/TT-NHNN)

Le Nguyen Anh Hao

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