Set up a Czech Republic invested company in Vietnam
The investment cooperation between Vietnam and the Czech Republic is growing stronger, bringing practical benefits to both sides. With strengths in the manufacturing industry, Czech businesses have found in Vietnam a potential market with abundant labor resources and competitive production costs. Meanwhile, Vietnam benefits from technology transfer, improved production capacity and job creation. The diversification of investment sectors, from industry to services, has contributed to strengthening the comprehensive cooperation between the two countries. However, many investors still do not know the procedures for establishing a company in Vietnam, Viet An Law would like to guide customers through the procedures for setting up a company with investment capital in the Czech Republic in Vietnam through the article below.
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Some companies with Czech Republic investment capital in Vietnam
The Czech Republic, with its developed industry and long-standing business experience, has been making significant contributions to Vietnam’s economic development. Here are some typical Czech companies that have invested in Vietnam
Colt CZ Group: One of the most prominent names, specializing in the production of weapons and military equipment. The presence of Colt CZ in Vietnam has contributed to improving the country’s defense production capacity.
Faurecia Group: As one of the world’s leading suppliers to the automotive industry, Faurecia has invested in Vietnam to produce parts and systems for major automakers. The presence of Faurecia contributes to improving the product quality of Vietnam’s automobile industry.
OMNIPOL Group: With a variety of fields of operation, from the defense industry to aviation, OMNIPOL has brought advanced technologies and solutions to the Vietnamese market.
Czech Republic business lines to invest in Vietnam
Manufacturing Industry
Automobiles and auto parts: Vietnam is a potential automotive market with increasing demand. Czech businesses can invest in the production of auto parts, components or car assembly.
Machinery and equipment: With a developed manufacturing industry, the Czech Republic can provide modern machinery and equipment for different industries in Vietnam such as textiles, food processing, and construction.
Electronics: Vietnam’s electronics industry is growing strongly. Czech businesses can invest in the production of electronic components, assembly of consumer electronics.
Energy
Renewable energy: Vietnam has great potential for solar and wind energy. Czech businesses can invest in renewable energy projects, contributing to environmental protection and ensuring energy security.
Information Technology
Software: Vietnam has abundant human resources in information technology. Czech businesses can cooperate with Vietnamese businesses to develop software and applications.
IT services: Services such as technology consulting and information security are also areas with potential for development.
The process of establishing a 100% Czech Republic company in Vietnam
Step 1: Apply for an investment certificate;
Step 2: Register to establish a company with 100% Czech Republic capital in Vietnam;
Step 3: Proceed to engrave the legal entity’s seal when it has a tax identification number;
Step 4: Open an investment capital account and contribute capital;
Step 5: After completing the capital contribution procedure, business activities can be carried out. Note that it may be necessary to apply for sub-licenses for conditional business investment lines
Apply for an investment certificate to establish a company with 100% Czech capital in Vietnam
Dossier of application for an investment certificate
Written request for implementation of the investment project;
An investment project proposal includes the following contents: the investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment schedule, labor demand, proposal for investment incentives, impact assessment, etc socio-economic efficiency of the project;
Dossier proving the company’s head office: Lease contract, Notarized copy of real estate documents of the lessor: Land use right certificate, Construction permit; if the lessor is a company: It is necessary to provide a copy of the enterprise registration certificate with the function of real estate business;
Confirmation of account balance corresponding to the capital intended to establish an FDI company is consular legalized and notarized
Depending on whether the investor is an individual or a legal entity, it will be necessary to provide the following additional documents:
Investors are individuals
Investors are legal entities
· Copy of identity card/identity card or passport for investors who are individuals subject to consular legalization and notarized translation;
· A copy of the consular legalized business registration certificate and notarized translation;
· Copies of personal legal papers of the legal representative of the organization that is consularly legalized and notarized.
Place of application: Department of Planning and Investment where the head office is expected to be located.
Processing order: Within 15 days from the date of receipt of a complete and valid dossier, the Department of Planning and Investment will issue an Investment Registration Certificate to the foreign investor. In case of refusal, the Department of Planning and Investment will reply in writing and clearly state the reason.
Registration of establishment of a 100% Czech Republic company in Vietnam
Dossier of application for a certificate of registration of an enterprise with capital in the Czech Republic
Application for enterprise registration;
Charter of the enterprise;
List of members of a limited liability company with two or more members or a list of general partners;
A notarized copy of the identity card or valid passport of the individual member; a notarized copy of the enterprise registration certificate of the member being an organization; a notarized copy of the valid identity card or passport of the legal representative of that organization;
The Czech Republic Investor’s Investment Registration Certificate has been completed above.
Place of application: Department of Planning and Investment where the enterprise is headquartered.
Duration: 03 – 06 working days.
Open an account with 100% Czech Republic investment capital in Vietnam and contribute capital
Preparation of dossiers for opening investment capital accounts includes:
Enterprise establishment license or investment registration certificate.
Investor’s identity document (passport, visa).
Documents proving the legal origin of the investment capital.
Place to apply: Submit the application at the selected bank.
The bank will conduct the appraisal of the dossier and open an investment capital account for the investor.
After having an investment capital account, the company with Thai capital contributed capital. Note that enterprises need to fully contribute the registered capital within 90 days from the date of issuance of the business registration certificate.
Money transfer: Investors transfer money from an overseas account to an investment capital account opened in Vietnam.
Confirmation: The bank will confirm the transfer of capital contribution.
Establishment of a company with Czech Republic capital in Vietnam in the form of purchase of contributed capital, purchase of shares in Vietnamese enterprises
For convenience and speed, Czech investors can choose to invest in the form of capital contribution and purchase of shares in Vietnamese companies. Accordingly, the procedure is carried out as follows:
In fact, because the procedure for establishing a Vietnamese company is much simpler, many investors in the Czech Republic have chosen to establish a Vietnamese company first and then carry out the procedures for buying the contributed capital, buying shares of the Vietnamese company or also buying back the contributed capital, buy shares of existing Vietnamese companies.
The investor submits the dossier at the Department of External Economics – Department of Planning and Investment where the economic organization is headquartered to carry out procedures for registering capital contribution, purchase of shares and capital contributions to the Company with 100% Vietnamese capital. The dossier includes the following documents:
Written registration of capital contribution, purchase of shares, purchase of contributed capital (according to Form A.I.7 issued together with Circular 25/2023/TT-BKHDT).
Written agreement in principle on capital contribution, share purchase or purchase of contributed capital between foreign investors and economic organizations with foreign investors contributing capital, purchasing shares or purchasing contributed capital.
Copies of legal papers of individuals and organizations contributing capital, purchasing shares, purchasing contributed capital; and of economic organizations with foreign investors contributing capital, buying shares, buying contributed capital.
In case of necessity, the External Economic Relations Division may request the supply of a copy of the land use right certificate of the economic organization to which foreign investors contribute capital, purchase shares or purchase contributed capital.
In case the capital contribution, purchase of shares or contributed capital of the foreign investor satisfies the conditions, the Department of Planning and Investment shall notify in writing within 15 days from the date of receipt of a complete dossier for the investor to carry out the procedures for changing shareholders. members in accordance with law. In case of failure to meet the conditions, the Department of Planning and Investment shall notify the investor in writing and clearly state the reason.
Step 2: Change the Certificate of Business Registration with additional information of foreign investors
After obtaining the approval of the Investment Department – Department of Planning and Investment on the approval for foreign investors to contribute capital, purchase shares or contributed capital, the investor shall carry out the following procedures:
Carry out procedures for changing shareholders and members on the Business Registration Certificate (Enterprise Registration Certificate) in accordance with the law at the Business Registration Office – Department of Planning and Investment.
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