One of the most popular forms of investment today is an investment in the form of a BCC contract. So what is a BCC contract according to the latest regulations?
What is a BCC contract?
Business Cooperation Contract hereinafter referred to as BCC contract. This is a contract signed between investors for business cooperation, profit sharing, and product distribution in accordance with the law without establishing an economic organization (according to Clause 14, Article 3 of the Law on Investment 2020). ).
Accordingly, it can be understood that the essence of a BCC contract is a contract signed between two or more entities who share a business project that want to carry out together but does not want to establish an economic organization.
Contents of the BCC contract
According to Article 27 of the Investment Law 2020, a BCC contract is signed between:
- Domestic investors;
- Domestic investors with foreign investors or between foreign investors.
Normally, BCC contracts are not required to be in writing. However, in case there is a foreign investor or a project on the list of conditional investment projects, it must be made in writing, accompanied by carrying out investment registration and verification procedures.
Pursuant to Article 28 of the Investment Law, a BCC contract includes the following main contents:
- Names, addresses, and authorized representatives of the parties to the contract; transaction address or location of the investment project;
- Objectives and scope of business investment activities;
- Contributions of the parties to the contract and distribution of business investment results between the parties;
- Progress and duration of contract performance;
- Rights and obligations of the parties to the contract;
- Amending, transferring, and terminating the contract;
- Liability for breach of contract, method of dispute settlement.
In addition, the parties to the BCC contract have the right to agree on other contents that are not contrary to the provisions of law.
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