100% foreign-invested business

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100% foreign-invested business

What is a 100% foreign-invested business? What are the caveats for this type of business?

Businesses with 100% foreign capital are Vietnamese legal entities but have 100% of capital contributed by investors to do business in Vietnam. Businesses with 100% foreign capital are established and operate in accordance with the provisions of the Law on Investment, the Law on Businesses, and related legal documents.

Apply for an Investment Registration Certificate

After the investment policy is approved by the National Assembly, the Prime Minister, and the provincial People’s Committee, the business must apply for an Investment Registration Certificate.

For projects subject to a decision on investment policies, the investment registration authority shall issue an investment registration certificate to the investor within 5 days from the date of receipt of the decision on investment policies.

An application for an Investment Registration Certificate includes the following documents:

• A copy of the registrant’s identity card, or passport;

• Copy of Certificate of Incorporation or other equivalent document certifying legal status;

• Proposing investment projects;

• Financial statements for the last 2 years of the investor;

• Commitment to the financial support of the parent company;

• Commitment to the financial support of financial institutions;

• Ensure financial capacity of investors;

• Documents explaining the investor’s financial capacity;

• Proposed demand for land use;

• Explanation of the use of technology;

• BCC contract for investment projects in the form of a BCC contract.

Procedures for applying for a certificate of establishment of a business with 100% foreign capital

After obtaining the investment registration certificate, the business needs to apply for a 100% foreign-owned business establishment registration certificate.

Dossier to establish a business with 100% foreign capital includes:

• Business registration form.

• Business charter with 100% foreign capital.

• List of members/List of founding shareholders and foreign investors.

• Valid ID card or passport (for individuals).

• Certificate of business registration for the organization and enclosed with personal identification papers, authorization decision of the authorized representative of the organization (for organizations).

• Investment registration certificate for foreign investors.

Dossier to establish a company with 100% foreign capital:

• Business registration form;

• Company rules;

• Members list;

• Copies of the following papers: Citizen ID, Passport, or other lawful personal identification of the member (for individuals);

• Establishment decision, Certificate of business registration or other equivalent documents of the organization and power of attorney; Citizen ID, Passport, or other lawful personal identification of the authorized representative of the member (for organizations);

• For a member being a foreign organization, a copy of the Business Registration Certificate or equivalent document must be consular legalized;

• Investment registration certificate for foreign investors in accordance with the Law on Investment.

Dossier to establish a joint-stock company with 100% foreign capital:

• Business registration form;

• Company rules;

• List of founding shareholders and shareholders being foreign investors (list of authorized representatives if any);

• Copies of the following papers: Citizen ID, Passport, or other lawful personal identification of the member being an individual;

• Establishment decision, Certificate of business registration or other equivalent documents of the organization and power of attorney; Citizen’s identity card, people’s identity card, passport or other lawful personal identification of the authorized representative of the member being an organization;

• For a member being a foreign organization, a copy of the Business Registration Certificate or equivalent document must be consular legalized;

• Investment registration certificate for foreign investors in accordance with the Law on Investment.

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