Aware of content on IRC, ERC and BRC

Vietnam, with its positive opening policies, modern infrastructure and abundant human resources, is becoming an attractive destination for foreign investors. The vast domestic market, along with new-generation free trade agreements, creates many attractive business opportunities. However, in order to establish an FDI company and put it into operation, it is necessary to comply with Vietnamese laws and apply for the necessary certificates including IRC, ERC and BRC certificates. Viet An Law would like to guide customers with preliminary information about the contents recorded on the certificates through the article below.

IRC Overview

What is IRC?

IRC stands for Investment Registration Certificate. This is an important legal certification document for foreign investors when implementing investment projects in Vietnam.

Meaning of IRC

• Confirmation of investment project: IRC is proof that the investor’s investment project has been approved and registered by the competent state agency.
• Rights and obligations: The IRC clearly stipulates the rights and obligations of investors with respect to the investment project, and defines the conditions and restrictions that investors must comply with.
• Legal basis: IRC is the legal basis for investors to conduct investment activities in Vietnam, such as:
  • Property Procurement
  • Hiring human resources
  • Open a bank account
  • Participating in production and business activities, investment in economic development in Vietnam

Contents recorded on IRC paper

According to Article 40 of the Law on Investment 2020, the content recorded on IRC paper includes the following information:

• Name of the investment project.
• Investment project code.
• Location of investment project, land area.
• Objectives and scale of investment projects.
• Investment capital of investment projects (including contributed capital of investors and mobilized capital).
• Operation duration of the investment project.
• Progress of implementation of investment projects, including:
  • Progress of capital contribution and mobilization of capital sources;
  • The progress of implementation of the main operational objectives of the investment project, in case the investment project is divided into stages, the schedule of implementation of each stage must be prescribed.
• Forms of incentives and investment support and grounds and conditions for application (if any).
• Conditions for investors to implement investment projects (if any).

General overview of ERC

What is ERC?

ERC stands for Enterprise Registration Certificate. This is an important legal certification document that every business, including foreign-invested enterprises (FDI), must have to be allowed to do business in Vietnam.

Meaning of ERC

• Confirmation of legal status: ERC proves that the business has been recognized and licensed by the state to operate its business.
• Legal basis: ERC is the legal basis for enterprises to carry out business activities, transactions, and sign contracts.
• Rights and obligations: The ERC clearly stipulates the rights and obligations of enterprises to the state and society.

Content recorded on ERC

According to Article 28 of the Law on Enterprises 2020, the content recorded on the ERC includes the following information:

• The name of the enterprise and the enterprise code;
• Address of the head office of the enterprise;
• Full name, contact address, nationality, number of legal papers of the individual, for the legal representative of the limited liability company and the joint-stock company; for general partners of partnerships; for business owners of private enterprises. Full name, contact address, nationality, number of legal papers of the individual, for individual members; name, enterprise code and address of the head office of the member being an organization, for limited liability companies;
• Charter capital for companies, investment capital for private enterprises.

General overview of BRC

What is BRC?

BRC stands for Business Registration Certificate (also known as sublicense). Business registration licenses are issued to foreign-invested enterprises to carry out certain conditional business activities in Vietnam, for example, licenses for retail sale of goods, certificates of food hygiene and safety, etc. BRC is issued after the business already has ERC and IRC. BRC only allows businesses to operate in the business sector registered on the license

Meaning of BRC

• Confirmation of eligibility for conditional business lines: BRC proves that the enterprise has been recognized and licensed by the state to operate in conditional business lines.
• Legal basis: BRC is the legal basis for enterprises to do business in conditional business lines such as providing travel services, retail licenses or food hygiene and safety certificates for restaurant and catering services.
• Rights and obligations: The BRC clearly stipulates the rights and obligations of enterprises with respect to such conditional business lines.

Contents recorded on BRC

Depending on the sub-license, the enterprise will apply for different contents, but in general, they all show the following information:

• Business name
• Business ID
• Head Office Address
• Scope and scope of business enterprises permitted to carry out

Detailed IRC, ERC and BRC Classification Table

For any difficulties related to investment activities in Vietnam, please contact the investment legal consulting department of Viet An Law Firm for detailed advice!