Client’s inquiry: We want to import rice from Vietnam to India. Could you guide us how to open trading company to import rice into Vietnam?
ASL LAW’s ADVICE
First of all, ASL Law would like to send our regards and sincere thanks to you (hereinafter referred “Client”) for contacting our legal service. We understand that the Client is seeking legal advice for opening a foreign-invested trading company that can import rice from India to Vietnam.
We are grateful to present you our Legal Service Proposal for your review and consideration as follows:
PRELIMINARILY COMMENTS OF ASL LAW
Under Vietnam’s WTO Commitments, foreign-invested companies engaging in distribution services will be permitted to engage in the commission agent, wholesale, and retail business of all legally imported and domestically produced products except cigarettes and cigars, books, newspapers and magazines, video records on whatever medium, precious metals and stones, pharmaceutical products and drugs, explosives, processed oil and crude oil, rice, sugarcane, and beet sugar.
Under Vietnam’s Laws and Regulations, while rice exportation is a conditional business line and rice distribution is prohibited to the foreign-invested company, you have the right to open a 100% foreign-invested company in Vietnam engaging in importing rice from India to sell to the Vietnamese wholesaler.
Kindly note that to import rice into Vietnam, the importer must prepare the Dossier of announcement imported rice quality standards, the minimum requirements are as follows:
- Certificate of Exportation or Health Certificate issued by a competent authority of the country of origin to ensure the safety of users or to convince that the product be freely sold in the market of the producing or exporting country (the document must be legalized);
- A certificate of food safety within 12 months from the date of submission of the application issued by a designated testing laboratory or a laboratory accredited in accordance with ISO 17025 complying with safety standards promulgated by the Ministry of Health (original or notarized copy);
- Certificate for food safety and Good Manufacturing Practice (GMP) or equivalent certificate (notarized copy by the organization or individual).
We will advise a specific plan to obtain these certificates and procedures for importing licenses if requested.
SCOPE OF SERVICES
The following works are proposed based on the request of the Client. However, depending on the specific position/situation of the Client, several work items may not be necessary. Meanwhile, other works may be required. Any additional works beyond the scope of this Legal Service Proposal could be provided upon request.
|Pre-licensing procedure |
· Attending various meetings with the Client to explain and confirm the main principles for setting up the Foreign-invested company engaging in importing rice from India to Vietnam in Vietnam (“the Project”);
· Preparing a list of legal documents required for the implementation of the Project. Based on the information provided by the Client, we will review and incorporate these documents into the application file;
2. Drafting documents:
· Drafting the Application Dossier for implementation of the Project.
· Drafting the Charter of the Company.
|Licensing procedure |
· Reviewing and assembling all required documents to be included in the application file for implementation of the Project;
· Representing Client to submit the application files for implementation of the Project; and
· Acting as Client attorney to follow up with the competent authorities regarding the implementation of the Project.
|Post-licensing procedure |
· Making public notice of company establishment.
· Assisting Client on company account opening.
· Making and registering Company Corporate Stamp.
The roadmap for investment registration and company incorporation can be described in the following steps:
- Preparing the application dossier: We shall collect the necessary information and documents from the Client. Upon receipt of necessary information and documents from you, we shall translate documents from English into Vietnamese and prepare the application dossier under the standard forms. The initially drafted application dossier shall be sent to the Client for your comments. Then, after updating the application dossier based on your comments, we shall provide finalized application dossiers for execution. We anticipate that this phase shall be completed in around 05 working days.
- Licensing procedure: around 30 – 40 working days upon submission.
- Post-licensing procedure: around 05 working days upon submission.
For the avoidance of any doubt, in practice, the administrative procedure can be prolonged and the competent authority must consult relevant ministries before granting the license. In such a case, we shall try our best to accelerate the progress in order to obtain approval at the soonest.
|Services||Capped Fee (USD)|
|Opening a wholly foreign-invested company|
|Opening the bank account|
|Apply for importing license (if requested)||The fee shall be dependent on the location and scale of rice that you would like to import.|
Other Corporate Service in Vietnam:
We also do provide corporate services with the following fees:
|No||Works||Capped Fee (USD)||Assumptions|
|1||Accounting services (including bookkeeping services)|
|1.1||Monthly tax declaration||The fee shall depend on the number of Invoices per quarter: |
|1.2||Financial reporting (CIT finalization and PIT finalization)||From ___ USD/year||This fee includes a Declaration of CIT finalization and a Declaration of PIT finalization. The fee shall be dependent on the number of Invoices. If the number of invoices per year: |
|1.3||· Submit all documents to authorities when having change labor (increase and decrease)|
· Closing social insurance when employees leave
· Applying tax code for employees
· Consultants about labor contract
· Calculate PIT
|___ USD/ month (1-5 persons)|
|2||Audit report||The fee depends on revenue|
|3||Insurance Registration for Viet name staff|
|3.1||From 01 to 4 employees||USD/ time|
|3.2||Software for registration of social insurance||USD/ 3 year|
|4||Work permit for foreigner||USD/ time|
|5.2||Granting Temporary Residence Card||From __ depending on the complexity|
|5.3.||Granting Investor Visa||From US___ depending on the complexity|
|6||Virtual Office Address||US$___/month|
|8||Bank account opening charges||included in professional fees|
- The above fee quotation is based on US Dollars
- The report(s) and all legal works will be written in English;
- The above fee excludes an 8% VAT
A professional fee shall be paid to ASL LAW as follows:
- Within 03 working days upon signing the Legal Service Proposal, the Client will deposit 70% of the total estimated professional fee including VAT.
- Within 03 working days upon issuance of the Enterprise Registration Certificate, the Client will pay 30% of the total estimated professional fee including VAT.
- The client shall immediately notify ASL LAW of when actual payment(s) will be made on the amount specified in the invoice(s). ASL LAW will start working only upon receipt of payment of the respective invoice(s). Alternatively, ASL LAW reserves the right to withdraw the service if payment is not received 10 days after the date of the invoice. Further, in the event payments are not received by the payable date, ASL LAW reserves the right to suspend services and/or levy and collect a late payment fee of 0.5% per month up to the date of receipt of payment by ASL LAW.