Tiếng Việt
中文 (中国)
In Vietnam, the process of establishing economic organizations by foreign investors is governed by specific regulations outlined in Decree No. 31/2021/NĐ-CP. These regulations provide a structured framework for foreign investors looking to initiate business ventures within the country. Understanding these procedures is essential for ensuring compliance and facilitating smooth operations.
1. Overview of Establishment Procedures: According to Article 63 of Decree No. 31/2021/NĐ-CP, foreign investors can establish economic organizations in Vietnam through the following steps:
- For new investment projects, foreign investors must obtain approval for investment proposals and acquire a Certificate of Investment Registration. Subsequently, they proceed with the establishment of economic organizations based on the corresponding legal requirements for each type of entity.
- In cases involving the transfer of investment projects and subsequent establishment of economic organizations, foreign investors need to follow the procedures for issuing or adjusting the Certificate of Investment Registration. This aligns with the specific legal provisions applicable to each type of economic organization.
2. Detailed Procedures: The procedures and documentation required for establishing economic organizations vary depending on the type of entity and the nature of the investment project. Key points to consider include:
- Adherence to legal requirements specified in the law on enterprises or other relevant legislation about economic organizations.
- Submission of necessary documents and completion of prescribed procedures under the law.
- Flexibility in determining the charter capital of economic organizations, which may not necessarily mirror the investment capital of the project. Economic entities can adjust their capital structure and mobilize additional funds to support investment activities as outlined in their Investment Registration Certificate.
3. Implementation of Investment Projects: Once the economic organization is established, foreign investors can proceed with implementing their investment projects. Article 64 of Decree No. 31/2021/NĐ-CP provides guidelines for this phase, emphasizing the following:
- Compliance with investment approval procedures and the issuance of Investment Registration Certificates, where applicable.
- Reporting obligations for economic organizations not covered under specific investment approval requirements, ensuring transparency and regulatory compliance.
- Adjustment of enterprise registration details at the business registration authority, allowing for flexibility in adapting to changing market conditions and business requirements.
4. Regulatory Compliance in Securities Trading: Foreign investors and economic organizations with foreign investment capital engaging in securities trading must adhere to the regulations outlined in securities laws. This includes compliance with investment procedures and ownership restrictions on charter capital unless otherwise stipulated by international agreements on investment.
Establishing economic organizations by foreign investors in Vietnam involves navigating a structured process governed by Decree No. 31/2021/NĐ-CP. By adhering to these regulations and understanding the associated procedures, foreign investors can ensure compliance, facilitate smoother operations, and contribute to the growth and development of Vietnam’s economy.
****ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient, and lawful advice to its domestic and international clients. If we can be of assistance, please email to info@aslgate.com.
ASL LAW is the top-tier Vietnam law firm for in-depth legal advice in Vietnam and internationally. If you need any advice, please contact us for further information or collaboration.
