PROCEDURES FOR ISSUANCE OF THE INVESTMENT REGISTRATION CERTIFICATE

PROCEDURES FOR ISSUANCE OF THE INVESTMENT REGISTRATION CERTIFICATE

Currently, Vietnam is extremely diverse and multiform in terms of investment and business activities. An investment Registration Certificate is an indispensable element for Investors who want to establish a 100% foreign-owned enterprise in Vietnam or a joint-venture enterprise. What is the investment registration procedure? HTC Vietnam Law Firm will accompany investors to comprehend this legal issue in the article below.

I. Legal Basis:

- Law on Investment 2020;

- Decree No. 31/2021/ND-CP dated March 26, 2021 Elaboration Of Some Articles Of The Law On Investment;

- Circular No. 03/2021/TT-BKHDT dated April 9, 2021 Prescribing Templates For Documents And Reports Related To Investment Activities In Vietnam, Outward Investment Activities And Investment Promotion Activities

II. Consulting content:

• Dossiers for issuance of the investment registration certificate

Dossiers for issuance of the investment registration certificate include:

- An application form for execution of the investment project;

- A copy of the identity card or passport for the investor being an individual; a copy of the Business Registration Certificate for the investor being a legal entity;

- Proposal for the investment project including contents: investor, investment objectives, investment scale, investment capital and plan for raising capital, location, duration and schedule of the investment project, demand for labor, proposal for investment incentives, impact and socio – economic efficiency of the project;

- Copy of at least one of the following documents: the investor’s financial statements for the last two years; commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;

- Proposal demand for land use; If the project does not require the State to allocate or lease out land or to permit land repurposing, a copy of the document regarding the land use rights or other document identifying the right to use the location for execution of the investment project is required to be submitted;

- Contents of the explanation for the technology to be used in the investment project which using technology on the list of technologies restricted from transfer in accordance with regulations of the Law on Technology Transfer, including the following contents: technology name, technology origin , technological process; main technical parameters, use status of main machinery, equipment and technological lines;

- The business cooperation contract if the investment project is executed under a business cooperation contract;

Investors shall submit the dossier for investment registration authority.

2. Procedures for issuance of the investment registration certificate

Step 1: The investor determines whether the investment project intends to deploy the investment project is subject to approval for its investment guidelines

In the process of applying for an investment certificate, the investor needs to determine whether the investment project falls into the case of having to apply for approval for investment guidelines in accordance with the Law on Investment. In case it is necessary to apply, the investor must carry out the procedure to apply for approval for investment guidelines before proceeding with the procedure for granting an investment certificate.

Step 2: Prepare dossiers for the isuance for an investment registration certificate

Dossiers for the isuance for an investment registration certificate include:

- An application form for execution of the investment project;

- A copy of the identity card or passport for the investor being an individual; a copy of the Business Registration Certificate for the investor being a legal entity;

- Proposal for the investment project including contents: investor, investment objectives, investment scale, investment capital and plan for raising capital, location, duration and schedule of the investment project, demand for labor, proposal for investment incentives, impact and socio – economic efficiency of the project;

- Copy of at least one of the following documents: the investor’s financial statements for the last two years; commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;

- Proposal demand for land use; If the project does not require the State to allocate or lease out land or to permit land repurposing, a copy of the document regarding the land use rights or other document identifying the right to use the location for execution of the investment project is required to be submitted;

- Contents of the explanation for the technology to be used in the investment project which using technology on the list of technologies restricted from transfer in accordance with regulations of the Law on Technology Transfer, including the following contents: technology name, technology origin, technological process; main technical parameters, use status of main machinery, equipment and technological lines;

- The business cooperation contract if the investment project is executed under a business cooperation contract;

Step 3: Submit application for investment registration certificate

Pursuant to Article 34 of Decree 31/2021/ND-CP. After compeleting the dossiers, the investor shall submit an application for an investment registration certificate at investment registration authority as follows:

1. Provincial Departments of Planning and Investment shall issue, adjust and revoke investment registration certificates with respect to the following investment projects:

- Investment projects that are executed in at least 02 provinces;

- Investment projects that are executed both inside and outside industrial parks, export processing zones, hi-tech zones and economic zones;

- Investment projects which are executed inside industrial parks, export processing zones, hi-tech zones or economic zones where the industrial park, export processing zone, hi-tech zone or economic zone management boards have not yet been established or which are not under the management of the industrial park, export processing zone, hi-tech zone or economic zone management boards.

2. Management boards of industrial parks, export-processing zones, hi-tech zones and economic zone shall issue, adjust and revoke investment registration certificates with regard to the investment projects located therein, including:

- Investment projects that are executed both inside and outside industrial parks, export processing zones, hi-tech zones and economic zones;

- Investment projects which are executed inside industrial parks, export processing zones, hi-tech zones or economic zones.

Step 4: Appraise the application and issue the investment registration certificate

After the application for issuance of an investment registration certificate is submitted, the investment registration authority will appraise the application. In case the application is valid, the registration authority will issue an investment registration certificate to the investor. For an invalid dossier, the registration authority will ask the investor to adjust or amend the dossier.

The aforementioned are the consultations about procedures for issuance of the investment registration certificate in accordance with Vietnamese law. HTC Law Firm is pleased to accompany clients with all legal problems. For the best consultancy service, please get in touch with us.

(Writer: Nguyễn Hoàng Yến Chi

Translator: Nguyễn Thị Liên)