Long Hau helps foreign investors to establish a company in Vietnam

05/03/2017, 10:15

When establishing a company in Vietnam, investors will be required to seek approval of Vietnamese Authorities prior to stating establishment procedures. But due to the country’s complex legal process, most of foreign investor’s concerns about what documentation they need to prepare. Does the local government have good support? How long will it take to process?  How do they fill up information on Business Registration Form?

Long Hau Corporation’s consultants have extensive experience in advising legal procedures on obtaining investment licenses and business licenses. In fact, our team has successfully assisted over 160 investors to obtain business licenses in a short time. 


The following are the steps to complete the necessary legal procedures for investors who want to setting up an investment project and establish a company in Vietnam. Long Hau Industrial Park will specify all documentation that investor need to prepared. At the same time, our legal department will assists investors for obtaining license. 

Step 1: Line of Business (LOB) Registration

This step is actually to consider the line of business of the investor is suitable with the industry line which is allowed to operate in Vietnam. Is it in the list of investment incentives of the Industrial Park Management (LHC)? Refer to the following steps:

We will review the investment project to ensure which is eligible to operate in Vietnam. Is it on the list of encouragement investment of the Industrial Park Management (LHC)? Refer to the following steps:

Scenario 1: The business line is allowed to operate in Vietnam and on the list of encourage investment of the Industrial Park Management Board (LHC). 
This case is appropriate, the Industrial Park Management Board (LHC) has the right to decide to accept this project and don’t have to register business line with Local Authorities.
 

Scenario 2: Business lines is restricted to operate in Vietnam and isn’t on the list of encouragement investment of the Industrial Park Management
This can be divided into two categories: pollution and non-pollution. The Management Board (LHC) will review the production process of the investor. If it is a polluting industry and affect the environment of Industrial Park, LHC will reject the investment project. 

If it is a non-polluting industry, Environment Department of the Industrial Zones Authority (LHC) will work with relevant agencies to add this line of business to the investment attraction list.

Investor’s duties: Investor is required to submit an investment application, together with his/her investment plan and relevant document such as production process, waste water treatment technology, machinery and technology, to the Long An authority. If the competent authority requires a further clarification on the investment, this investor and LHC have to prepare related document and submit on time. 

LHC’s duties: Staff collects the required documents, work with agencies and departments to add this line of business on attracting list investment
 Processing time: 35 days from the date receive the valid investment project 
 Profile Composition:
  • A) The written request for implementing a new business line
  • B) A copy of identification card or passport of investor 
  • A copy of the investment certificate or other equivalent document that certify the legal status of investor;
  • C) The investment project proposal which cover the following contents: investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, investment progress, labor demand, proposal for investment incentive, impact assessment, socio-economic efficiency of the project;
  • D) Copies of one of the following documents: last two years of financial statement of the investor; written evidence of the ongoing parent company's financial support, Commitment to financial support from the financial institution; Guarantee of financial capacity of investors; Documents explaining the financial capacity of investors;
  • E) Proposed Land Use Purpose: if the project does not request the State to assign or lease land or permit the change of land use purpose, a copy of the lease agreement or other documents confirming that the investor has the right to use the land shall be submitted for current investment projects;
  • E) Explanation on the use of technology for projects specified at Point b, Clause 1, Article 32 of this Law, covering the following contents: name of technology, origin of technology, diagram of technological process; Main specifications, status of machinery, equipment and main technological lines;
  • G) BCC contract for investment project in the form of BCC contract.
Step 2: Investment registration certificate

Before submitting the investment application for obtaining certification, there are two important documents which investors have to obtain from their country. 
This is the certificate of business registration of foreign investors (if the project establish a company in Vietnam has capital from foreign enterprises) and Passport of Company Owner and legal representatives. These records must be legalized and translated into Vietnamese (at the Vietnamese embassy). These documents should be made in at least 5 copies for use for a variety of investment purposes in Vietnam.

 

 Applicable:

  • Having a foreign investor holding 51% or more of the charter capital, or a majority of partners in the case of an economic organization which is a partnership;
  • Having an economic organization as stipulated above holds 51% or more of the charter capital;
  • Having foreign investors and economic organizations stipulated above hold 51% or more of charter capital.
 Department in charge: Department of Investment Registration - Management Board of Long An Economic Zone
 Processing time: 15 days from the date of receipt of a valid investment documents
 Profile component: As in step 1 above.

 

Investor's Duties: Investor fill up relevant information on the registration form which is provided by LHC, such as total investment capital, production and business objectives, project implementation time, production process...

The LHC Consultant Duties: Providing registration forms and advising how to fill up the profile, file and obtain permits at the licensing office, then transfer it back to Investors.

Step 3: business registration license

After the certificate of investment registration is granted, Investors process to apply the enterprise registration. The main content of enterprise registration form should be: company name, charter capital, business registration and legal representative information in Vietnam.

 Applicable for all investors.
 Recipient: Long An Province Department of Planning and Investment
 Processing time: 05 working days from the date of receipt of a valid investment project file
 Profile component: Depending on the type of enterprise (JSC, limited company ..), the composition of the dossier varies.

 

Investor's Duties: Investor fill up relevant information on the registration form which is provided by LHC 

The LHC Consultant Duties: Providing forms, advice on how to fill in information relevant to the situation of the investor, looking up the list of industries, filing and obtaining permits at the licensing office. 

Step 4: Business stamp

The final step to establish a company in Vietnam is to register a company stamp.
 After obtaining the business registration certificate, the LHC consultant will take to register a company stamp on behalf of client
 Enterprises will submit the registration form of company stamp at Department of Planning and Investment.
 Time: 3 days after the application is accepted.

 

Step 5: License tax

Within 30 days from the date of issuance of enterprise registration certificate, enterprises must declare and pay license tax.

Above are the key steps which help investor to have a better understanding how to establish a company in Vietnam.

Foreign companies are looking for a sustainable investment environment and need investment advice which can contact Long Hau Industrial Park for advice and support. Long Hau Industrial Park is known as "green industrial park" with green landscape and professional staff, Long Hau IP shall continue to promote the offered benefits to the investors in and outside the countries.

Long Hau Industrial Park - Partner in Success
Address: hamlet 3, Long Hau commune, Can Giuoc district, Long An province
Hotline: (+84) 906 938 599 - (+848) 3937 5599
Website: www.longhau.com.vn   

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