Regarding the customer’s question about investment procedures in Vietnam, to wholesale or retail electronic equipment, we would like to have the initial consultation and quotation as follows:
I.OPTION 1 INVESTING TO ESTABLISH A NEW COMPANY
1.Step 1: Request the Department of Planning and Investment to issue an Investment Registration Certificate
1.1. The documents needed
– A written request for implementation of an investment project (drafted by the Law Firm according to the information provided by the investor, including: investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment progress, etc labor demand, proposal for investment incentives, impact assessment, socio-economic efficiency of the project);
– An explanation on the use of technology for the project specified at Point b, Clause 1, Article 32 of Law on Investment, including the following contents: technology name, technology origin, technological process diagram; main technical parameters, state of use of main machines, equipment and technological lines;
– Notarized copy: Lease Agreement
*Individual investors need to provide more:
– Copy of Consular Legalization of Foreign Investor’s Passport
– Copy of Consular legalization confirming the Bank account balance (at least equal to the expected investment amount) of the Investor
*Institutional investors/Companies need to provide more:
– Copy of Consular Legalization: Business Registration Certificate, Charter, Financial Report of the last 2 years of the foreign investor
– Copy of Consular Legalization Passport of Legal Representative of Foreign Investor / Legal Representative of the company to be established if he/she is a foreigner
– Copy of Consular Legalization confirming the Bank account balance (at least equal to the expected investment amount) of the Investor
1.2.Competent authority
– Department of Planning and Investment
1.3.Execution time
– For the case of registration of service industries included in the WTO Schedule of Commitments: 20-30 working days from the date the Investor provides complete documentation.
– For manufacturing and service industries not included in the WTO Schedule of Commitments: it may be necessary to consult the Provincial People’s Committee, Relevant Departments for about 30-40 working days.
2.Step 2. Establishing company at Business Registration Office
2.1. The documents needed
– Copy of Consular Legalization Passport of Legal Representative of Foreign Investor / Legal Representative of the company to be established if he/she is a foreigner (for the Organization Investor)
– Copy of Consular Legalization; Business Registration Certificate (for the Organization Investor)
– Copy of Consular Legalization of Foreign Investor’s Passport (for the Individual Investor)
– Other documents prepared by the Law Firm
2.2.Competent authority
– Business Registration Office
2.3.Execution time
– 5 working days
3.Step 3. Contributing capital on time commitment
The company opens a direct investment capital account in Vietnam, Investors transfer money via wire transfer to the Direct Investment Capital Account.
The Company brings the Certificate of Investment and Business Registration Certificate to the Bank to transfer money from the Direct Investment Capital Account to the Payment Account to conduct business activities of the Company.
Summary of the first option:
Estimated implementation cost: Contact us
Total execution time: 35 working days
Advantages of this option: There is an investment certificate for investors. If the investment scale is large enough, it is possible to negotiate with the government and local authorities to receive tax incentives.
Disadvantages of this option: The cost is higher. The procedures for investment and establishment of a company must be completed to be able to conduct construction, production and business activities.
II.OPTION 2: ESTABLISHING A COMPANY WITH 100% VIETNAM CAPITAL, THEN TRANSFER THE COMPANY STOCKS
- Step 1: Establishing a company with 100% Vietnam capital at the Business Registration Office
1.1. The documents needed
– Notarized copy of ID card/Passport of founding shareholders who are Vietnamese
– Notarized copy of ID card/Passport of the legal representative, the person expected to work as an accountant
– Other documents prepared by the Law Firm based on the information provided by the Investor: Company name, Head office address, contact information, Charter capital, business sectors, capital contribution ratio, The legal representative
1.2. Competent authority
– Business Registration Office
1.3. Execution time
– 5 working day
2.Step 2. Registering to purchase of shares of foreign investors
2.1. The documents needed
– A written registration of capital contribution, purchase of shares or stakes, including the contents: information on enterprise registration of the economic organization to which the foreign investor intends to contribute capital, purchase of shares, or stakes; the charter capital rate owned by foreign investors before and after capital contribution, purchase of shares or stakes to economic organizations (These documents will be drafted by the Law Firm based on the information provided by the client)
– Notarized copy of Passport for individual investors;
– Notarized copy of Passport of The Legal Representative of the foreigner investor/ The Legal Representative of the company to be established if it is a foreigner (for organization investors)
– Notarized copy of Business Registration Certificate (for organization investors)
2.2. Competent authority: Department of Planning and Investment or Provincial Industrial Park Management Board
2.3. Execution time: 10 working days
- Step 3: Transfering money to transfer shares
3.1. The company opens a direct investment capital account
3.2. Foreign investors transfer money to the Company’s Direct Investment Capital Account.
3.3. The Company’s direct investment capital account is transferred to the account of Vietnamese shareholders receiving shares transfer.
3.4. The company declares personal income tax, pays 0.1% of personal income tax on the total transfer value.
- Step 4: Registering foreign shareholder information at the Business Registration Office
4.1. The documents needed
Documents prepared by the Law Firm
4.2. Competent Authority
Business Registration Office
4.3. Execution time
3 working days
Summary of the second option:
Estimated implementation cost: Contact us
Total execution time: 20 working days
Advantages of this option: This thing help saves time and money on administrative procedures.
This is our initial consultation, we will advise in more detail when receiving your detailed information. This letter of advice and quotation is only valid for reference within 3 months
July 2, 2023
Best regards!
