ESTABLISHING COMPANY WITH 100% FOREIGN CAPITAL
Establishing a company with 100% foreign capital is one of the forms of investment almost foreign investors choose to do business in Vietnam in current. About the procedures to establishing company with 100% foreign capital completely different with the establishment of domestic company. Investors must satisfy with the conditions and procedures required by the Investment Law 2014:
A- Procedures of establishing business
STEP 1: Applying for approving invesment policies if invesment project have to register of decision on investment policies
Depending on the scale and purpose of the project, which is under the authority of the investment decision of any Office of the State:
- Authority to issue decisions on investment policies of the National Assembly
- Authority to issue decisions on investment policies of the Prime Minister
- Authority to issue decisions on investment policies of the Peopeo’s Committees of provinces
STEP 2: Applying for Certificate of investment registration
1. A project dossier consists of:
a) A written request for permission for execution of the investment project;
b) A copy of the ID card or passport (if the investor is an individual); a copy of the Certificate of establishment or an equivalent paper that certifies the legal status of the investor (if the investor is an organization).
c) An investment proposal that specifies: investor(s) in the project, investment objectives, investment scale, investment capital, method of capital rising, location and duration of investment, labor demand, requests for investment incentives, assessment of socio-economic effects of the project;
d) Copies of any of the following documents: financial statements of the last two years of the investor; commitment of the parent company to provide financial support; commitment of a financial institutions to provide financial support; guarantee for investor’s financial capacity; description of investor’s financial capacity;
dd) Demand for land use; if the project does not use land allocated, leased out by the State, or is not permitted by the State to change land purposes, then a copy of the lease agreement or other documents certifying that the investor has the right to use the premises to execute the project shall be submitted;
e) Explanation for application of technologies to the project mentioned in Point b Clause 1 Article 32 of this Law, which specifies: names of technologies, origins, technology process diagram, primary specifications, conditions of machinery, equipment and primary technological line;
g) The business cooperation contract (if the project is executed under a business cooperation contract).
2. Competent authorities:
- Investors submit dossiers according to regulations to the investment registration office;
- Planning and Investment Department: Investment projects are not located in Industrial parks, export-processing zones, hi-tech zones, economic zones.
- Management boards of industrial parks, export-processing zones, hi-tech zones, economic zones : Investment projects on in Industrial parks, export-processing zones, hi-tech zones, economic zones.
- South Management Boards: Investment projects in the South of City.
STEP 3: Applying for Business licenses (cases for investment project business on wholesaling, retailing)
STEP 4: Applying for Cerfiticate Business registraion
Any question please contact NVCS for detail advices.