1. What are the benefits of establishing a company/enterprise with foreign investment through capital contribution or share purchase?
When foreign investors establish a company in the form of capital contribution and share purchase, they will receive the following benefits:
- There is no need to carry out investment certificate procedures, helping to minimize related procedures when there is a change in business registration content at state agencies.
- Quick and simple change procedures similar to Vietnamese businesses.
- There is no need to carry out procedures to update investment information in the investment management system.
- Making procedures to prove financial capacity is simpler and easier to do.
- When a foreign investor contributes capital or buys shares of a Vietnamese company that has been granted a Business Registration Certificate, it is not necessary to carry out procedures for issuance of an Investment Registration Certificate (even if it is a 100% purchase). company's contributed capital). Note that there is an exception when a Vietnamese company does business in the field of training, even if a foreign investor buys from 1% of the charter capital, it still needs to carry out procedures for issuance of an Investment Registration Certificate.
2. Things to note when establishing a foreign-invested company
- Foreign investors opening companies in Vietnam must have nationality in WTO countries or countries that have signed trade cooperation agreements with Vietnam. In addition, you must have documents verifying your legal status as well as proving your financial ability (confirming the balance in your bank account).
- Each different field of investment activities will have its own conditions on capital contribution ratio, investment capital, investment form, and implementation procedures.
- When falling into the following cases, foreign investors must carry out capital contribution registration procedures:
- Foreign investors who contribute capital to enterprises/companies operating in the business field are subject to conditions applicable to foreign capital contributors;
- Foreign investors hold 51% or more of the charter capital of a Vietnamese company after capital contribution.
