According to regulations in Article 26 of Investment Law 2020, foreign investors need to carry out procedures to register capital contributions or purchase shares/capital contributions of companies in Vietnam in the following cases:
- Contributing capital to or purchasing shares/capital contributions from foreign investors increases their ownership ratio in target economic organizations or companies operating in conditional business investment industries and sectors. Applicable to foreign investors.
- Capital contribution or purchase of shares/capital contributions results in foreign investors and economic organization(s) holding more than 50% of the charter capital held by the following entities:
- Foreign investors or partnerships where the majority of partners are foreign individuals.
- Economic organizations with more than 50% of charter capital held by foreign investors or partnerships with the majority of partners being foreign individuals.
- According to the provisions in the Points a, b and c of Clause 1, Article 23 In this Law, when a foreign investor makes a capital contribution, shares purchase, or purchase of capital contribution if the charter capital ownership ratio of the foreign investor or economic organization exceeds 50% in the organization. economic organizations, there are the following cases:
- Increase the charter capital ownership ratio of foreign investors from below or equal to 50% to above 50%;
- Increase the charter capital ownership ratio of foreign investors when foreign investors already own more than 50% of the charter capital in an economic organization.
- Foreign investors must also meet the conditions and be granted a Land Use Rights Certificate when contributing capital, purchasing shares, or purchasing capital contributions from economic organizations in areas such as islands, communes, and wards. , border town; communes, wards, coastal towns and other areas affecting national defense and security.
