Set up a company in Vietnam for family-related services

According to statistics of the Center for Women and Development, in the first six months of 2021, the Hotline 1900,969,680 received more than 1,300 calls, an increase of about 140% compared to 2020, of which 83% of calls were related to domestic violence. If only the number of cases consulted about domestic violence has increased by nearly 60% compared to 2020 and increased by more than 230% compared to 2019. Since Vietnam signed the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW Convention), the issue of prevention and combat against gender-based violence and domestic violence is a particular concern. In addition to promulgating legal documents related to gender equality, intervention models to prevent domestic violence; model of prevention and coping with gender-based violence; and building a happy family has been brought into play, brought practical effects, raised people’s awareness, promoting the role and position of the family, be aware of the law, especially understand the violations of gender-based violence, improve the role and responsibility of individuals in preventing and combating the violence. Additionally, enterprises and organizations with Vietnamese capital in Vietnam are also encouraged to establish a foreign-invested company in services related to the family to support related issues.

CPC classification of services related to the family

According to the United Nations’ Provisional Central Product Classification (CPC Prov.), services related to the family sector fall under subsector CPC 933 (Social Services). These services include support services for domestic violence victims, consulting services on domestic violence prevention, consulting services on legal, psychological, and health care, arranging temporary accommodation and other necessary conditions for victims of domestic violence, guidance services, consulting for family members and children on behavioral issues, education,…

Conditions to set up a company in Vietnam for family-related services

Foreign investors who want to invest in the field of “Services related to the family” need to satisfy the following market access conditions:

Regulations in AFAS, EVFTA:

Social Services (CPC 933): Allows the establishment of joint ventures in which the foreign contributed capital does not exceed 70%.

Regulations in CPTPP:

Appendix NCM II-VN-25:

Social Services (CPC 933): Vietnam reserves the right to adopt and maintain any measure related to the sub-sectors listed above.

Regulations of the Vietnamese law

Competence to grant operation registration certificates to establishments supporting domestic violence victims and counseling establishments on domestic violence prevention: Provincial People’s Committees to grant operation registration certificates to domestic violence victim support facilities, and counseling facilities about domestic violence prevention in cases where the head office is located in a provinces or centrally run cities that is established by foreign organizations and individuals.

Procedures for setting up a company in Vietnam for family-related services

Step 01: Apply for an Investment Registration Certificate for a foreign-invested company

If projects do not use land (without direct land lease from the state) that do not use technologies on the list of restricted transfers, the procedures for approval of investment policies are not required. Foreign investors carry out the procedures for applying for an Investment Registration Certificate.

Dossier for issuance of the Investment Registration Certificate to a foreign-invested company:

• A written request for implementation of an investment project;
• Documents on investor’s legal status;
• For individual investors: copy of identity card, citizen ID card or passport;
• For organization investors: copy of the Establishment Certificate or other equivalent document certifying the legal status;
• The investment project proposal includes the following contents: investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, and investment schedule, demand for labor, a proposal for investment incentives, assessment of the project’s socio-economic impact and efficiency;
• Copy of one of the following documents:
  • The investor’s financial statements for the last 2 years;
  • Commitment to support the finances of the parent company;
  • Commitment to support financial of financial organizations;
  • Guarantee on the financial capacity of the investor;
  • Documents explaining the financial capacity of the investor;
• Proposing land use needs; In case the project does not request the State to allocate or lease land or permit the change of the land use purpose, a copy of the location lease agreement or other document confirming that the investor has the right to use the location for implementation the investment project;
• The explanation on the use of technology includes the following contents: technology’s name, technology’s origin, technological process diagram; Main technical parameters, usage status of main machinery, equipment and technological lines for projects using technologies on the List of technologies restricted from transferring;
• BCC contract for investment projects in the form of BCC contract.

The agency that submits the dossier for the Investment Registration Certificate for the company with 100% foreign capital at the investment registration agency

• If the company is located in an industrial park, it is the Management Board of industrial zones.
• If the company is located outside the industrial park, it is the Division of External Economic Relations – Provincial Department of Planning and Investment.

Step 02: Establish an enterprise and issue an Enterprise Registration Certificate

After obtaining an Investment Registration Certificate, investors need to prepare the dossier to set up an enterprise.

Dossier of establishment of a foreign-invested company:

• A document request for registration of an enterprise;
• Company’s charter;
• List of members/shareholders;
• Copy of the following papers: Citizen ID cards, identity cards, Passports or other lawful personal identification of members being individuals;
• The establishment decision, Enterprise Registration Certificate or other equivalent documents of the organization and written authorization; Citizen ID card, identity card, passport or other lawful personal identification of the authorized representative of the member being an organization;
• For a member being a foreign organization, a copy of the Enterprise Registration Certificate or equivalent documents must be consularly legalized;
• An Investment Registration Certificate for foreign investors in accordance with the Law on Investment.

The agency that submits the dossier for an enterprise registration certificate to companies with 100% foreign capital

Business Registration Agency – Provincial Department of Planning and Investment.

Duration to issue the Enterprise Registration Certificate for companies with 100% foreign capital

05 working days from the date of receiving of the complete and valid dossier.

Step 03: Posting the statement of establishment of a foreign-invested company

After an enterprise is granted an Enterprise Registration Certificate, it must make a public announcement on the National Portal of Business Registration according to the order and procedures and pay fees as prescribed.

The content to be announced includes the contents of the Enterprise Registration Certificate and the following information:

• Business lines;
• List of founding shareholders and shareholders being foreign investors for joint-stock companies.

Executing agency: Reporting division of the Business Registration Authority – Provincial Department of Planning and Investment.

Step 04: Engrave the seal of the foreign-invested company

After obtaining the Enterprise Registration Certificate and having posted the enterprise establishment statement. The enterprise engraves the seal at one of the licensed seal engraving units. Enterprises decide by themselves the number and form of seals within the scope permitted by law.

Customers wishing to set up a company in Vietnam for family-related services, and provide legal consultation during the implementation of an investment project in Vietnam, please contact Viet An Law Firm for the best support!