PROCEDURES FOR ADJUSTING INVESTMENT PROJECTS IN CASES OF ENTERPRISE DIVISION, CONSOLIDATION, ACQUISITION OR CONVERSION OF FORM OF ENTERPRISES.

PROCEDURES FOR ADJUSTING INVESTMENT PROJECTS IN CASES OF ENTERPRISE DIVISION, CONSOLIDATION, ACQUISITION OR CONVERSION OF FORM OF ENTERPRISES

Nowadays, under the economic situation, many enterprises have to perform division, consolidation, acquisition or conversion form of enterprises. Therefore, investment projects also need to be adjusted. The following article shall provide an in-depth and comprehensive understanding of the aforementioned matter.

I. Related regulations

- Law on investment 2020

- Decree 118/2015/ND-CP

II. Consultation from HTC Vietnam law firm

1. When do the investors need to perform division, consolidation, acquisition or conversion of enterprises?

Division, consolidation, acquisition or conversion of enterprises happen when THERE ARE CHANGES IN investment policies and demand for administration management, when the enterprises change investors, or to improve competitiveness.

Division, consolidation, acquisition or conversion of enterprises happen when investing policies and demand for administration management are changed, when the enterprises change investors, or to improve competitiveness. Overall, changing the form of enterprises can be performed with different purposes, such as to improve competitiveness, raise economic efficiency or settle domestic disputes.

2. Procedures for adjusting the investment projects in cases of division, consolidation, acquisition or conversion form of enterprises

Enterprises that are established based on division, consolidation, acquisition or conversion can inherit and continue to carry out rights and obligations of former enterprises. Upon the performance of division, consolidation, acquisition or conversion, investors need to adjust the investment projects.

Adjustment of investment projects shall be carried out as follow:

- The investor shall determine the re-organization and settle assets, rights and obligations;

- Relating to the investment project in accordance with regulations of law on enterprises and relevant regulations of law.

Investors shall submit 01 set of dossier for Investment registration authority where investment projects are implemented. Composition of application are prescribed below:

- An application form for adjustment of the investment project;

- A copy of Certificate of Enterprise Registration or equivalent legal documents of investors;

- A copy of the resolution or decision of the investor being the re-organized business organization on re-organization which specifies the settlement of assets, rights and obligations relating to the project;

- Within 15 working days since the date of receiving valid application, Investment registration authority adjust and grant issue investment registration certificate;

- With investment projects exclusive of Investment Registration Certificate, the investor is not required to carry out procedures for adjustment. Transferring ownership of property to new investors after re-organization must comply with provisions of the civil law, the law on enterprises and other relevant regulations.

The aforementioned are the consultations about procedures for adjusting investment projects in cases of division, consolidation, acquisition or conversion of enterprises. HTC Law Firm is pleased to accompany clients with all legal problems. For the best consultancy service, please get in touch with us.

For more details, please contact:

HTC Vietnam Law Firm

Address: 15th Floor, Multipurpose Building, 169 Nguyen Ngoc Vu, Trung Hoa Ward, Cau Giay District, Hanoi.

Tel: 0989.386.729; Email: [email protected]

Website: https://htc-law.com; https://luatsuchoban.vn