What is a foreign-invested enterprise?
The Law on Investment 2020 does not detail foreign-invested enterprises, but only stipulates that: “Foreign-invested economic organizations are economic organizations with foreign investors as members or shareholders.”
Therefore, it can be understood that foreign-invested enterprises are enterprises established and operating under Vietnamese law and have foreign investors who are members or shareholders.
Conditions for establishment of foreign-invested enterprises
- Conditions on subject and nationality of foreign investors
- Conditions on the financial capacity of foreign investors
- Conditions for the company’s headquarters for registration and location of the project
- Conditions of experience capacity and specific conditions according to the investment field
Documents required to establish foreign-invested enterprises
- Written request for implementation of the investment project.
- Copies of identity cards/IDs or passports for individual investors; a copy of the Establishment Certificate or other equivalent document confirming the legal status for the investor as an organization.
- Proposals for investment projects include: investors implementing projects, investment objectives, investment scale, investment capital and plans for capital mobilization, location, duration, investment schedule, labor needs, proposals on enjoyment of investment incentives, impact assessment , the socio-economic efficiency of the project.
- A copy of one of the following documents: The investor’s latest 02-year financial statements; commitment to financial support of the parent company; commitment to financial support of financial institutions; guarantee of the investor’s financial capacity; documents explaining the financial capacity of the investor.
- Proposing land use needs; in case the project does not request the State to assign land, lease land, allow the transfer of land use purposes, a copy of the land use agreement or other document confirming that the investor has the right to use the place to implement the investment project.
- Explanation of the use of technology for investment projects for projects using technology on the list of technologies restricted from transfer in accordance with the law on technology transfer including the contents: technology name, technology origin, technology process diagram; key specifications, use status of machinery, equipment and main technology lines.
- BCC contracts for investment projects in the form of BCC contracts.
* The application is submitted at the Investment Registration Authority
Order of procedures for establishment of foreign-invested enterprises
Step 1: Apply for an investment registration certificate.
The investor submits 01 set of dossiers of application for investment registration certificates to the investment registration agency, the dossier includes the following contents:
- The written request for the implementation of the investment project, including the commitment to bear all costs and risks if the project is not approved.
- Documents on the legal status of investors.
- Documents demonstrating the financial capacity of the investor.
- Proposed investment project. In case the law on construction provides for the preparation of pre-feasibility study reports, investors may submit pre-feasibility study reports instead of investment project proposals.
In case the investment project does not request the State to assign land, lease land, allow the transfer of land use purposes, it shall submit a copy of papers on land use rights or other documents identifying the right to use the place for the implementation of the investment project.
- The contents of explanation of technology used in investment projects for projects subject to appraisal and opinions on technology in accordance with the law on technology transfer.
- BCC contracts for investment projects in the form of BCC contracts.
- Other documents related to investment projects, requirements on the conditions and capacity of investors in accordance with law (if any).
Step 2: Procedures for establishing a foreign-owned enterprise
Immediately after receiving the Investment Certificate, the investor must establish a foreign-invested company in accordance with the Enterprise Law 2020. Basically, the steps of establishing foreign-invested enterprises are the same as establishing domestic enterprises. Investors choose the appropriate type of business, prepare dossiers corresponding to each type of enterprise to submit dossiers to competent authorities.
The basic business establishment procedure consists of the following steps:
- Apply for a business registration certificate
- Business announcement on national portal
- Carving the mark of a foreign-invested company
Step 3: Apply for a sub-license (for some special occupations)
After establishing a foreign-invested enterprise, depending on each business activity, the enterprise needs to take another step to apply for a business license.
The procedure for establishing a foreign-invested enterprise is relatively complicated and complicated. If you have any questions, contact us for advice and support. Our consulting services will bring the most efficient and fast and economical solution for you with experienced and enthusiastic staff. Hotline : (033) 534 4640.
