When do investors need to apply for investment registration?

Any investors wish to take part in investment activities shall carry out procedures to be granted Enterprise registration certificate (ERC) or Certificate of investment registration (CIR)

Regularly, domestic investors shall carry out procedures to be granted ERC but they can be granted CIR f they carry out that procedure as they wish. With foreign investors, they must apply for CIR before operating investment and if they want to establish an enterprise, they shall follow procedures to be granted ERC. In what cases do they need to carry out procedures to be granted CIP?

The following article shall provide an in-depth and comprehensive understanding of the aforementioned matter.

I. Legal basis

- Law on investment 2014

- Decree 118/2015/ND-CP elaborating some articles of the law on investment

II. Scope of consultation

1. Circumstances that require investment registration

- Investment projects of foreign investors

- Investment projects of business organizations are prescribed in Clause 1 of Article 23, Law on investment 2014. They are business organizations that after establishing, contributing capital, buying shares or capital contributions, foreign investors hold 51% of charter capital or more, or foreign members of a business organizations hold 51% of charter capital or more

2. Circumstances that do not require investment registration

- Investment projects of domestic investors who are Vietnamese or of business organizations that do not have foreign shareholders.

- Investment projects of business organizations are prescribed in Clause 1 of Article 23, Law on investment 2014. They are business organizations in which foreign members do not hold 51% of charter capital or more. With these business organizations, if the projects fall into groups that need granting decisions on investment policies by the National Assembly, the Prime Minister, provincial People’s Committee, investors shall carry out the projects after the issuance of these decisions.

- Investment under the form of contributing capital, buying shares, buying capital contribution of business organizations.

The aforementioned are the scope of consultations. HTC Law Firm is pleased to accompany clients with all legal problems. For the best consultancy service, please get in touch with us.

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HTC Vietnam Law Firm

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