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Condition to setup foreign investment postal services company

Nowadays, with the development of information technology, postal services are increasingly focused. Updated with the development trend in the service business Foreign investors are tending to invest in providing postal services in Vietnam. Foreign investors wishing to establish a Vietnamese postal service company must meet the investment conditions under Vietnamese law.

Vietnam Investment

Procedures for establishment of a foreign-invested company providing postal services

Legal grounds

· WTO commitments and investment treaties to which Vietnam is a sign or accession to;

· Law on Investment 2020;

· Decree No. 31/2021/ND-CP guiding the Law on Investment

· 2010 Postal Law;

· Decree No. 47/2011/ND-CP detailing the Postal Law;

A postal service is a service that accepts, transports, and delivers postal mail by method from the sender’s location to the recipient’s location via the postal network, except electronically.

In the commitment form when Vietnam joins the WTO, the delivery service has the code CPC 7512: no restrictions on postal services. After five years from the date of joining Vietnam, it is allowed to establish a 100% foreign-owned company providing postal services.

Postal services are one of the industries in the list of conditional trades as prescribed in the Law on Investment 2020.

Conditions for providing detailed postal services in the Law on Post 2010.

Conditions on charter capital ownership ratio of foreign investors in economic organizations

Foreign investors are established postal service companies with 100% foreign investment.

Minimum charter capital of a postal service business as prescribed

· In case of providing postal services within the province or inter-province, the enterprise must have a minimum capital of VND 02 billion;

· In the case of provision of international postal services, enterprises must have a minimum capital of VND 05 billion.

Conditions on the form of investment

Foreign investors investing in postal services are carried out in the following forms

· Establishment of a 100% foreign-invested economic organization;

· Establishment of foreign-invested and Vietnamese-invested joint venture economic organizations.

· Forms of capital contribution, purchase of shares, and capital contributions to Vietnamese economic organizations.

Scope of postal services of foreign investors

Foreign investors may establish postal service enterprises doing business in the following scope

· Providing postal services within the province;

· Providing postal services within inter-provincial and international scope;

· Foreign-invested projects with a capital of less than VND 15 billion must be examined but not subject to the Prime Minister’s decision on investment guidelines;

· Foreign-invested projects with a capital of VND 15 billion or more must be examined before being presented to the Prime Minister for a decision on investment guidelines.

Investment certificate issue agencies shall send dossiers for verification opinions of the following agencies

· Departments of Information and Communications for investment projects providing postal services within the province;

· Ministry of Information and Communications for investment projects providing postal services within inter-provincial and international scope.

Conditions for business licenses under the law on a postal specialism

Foreign investors providing services after being granted investment registration certificates and enterprise registration certificates need to grant postal service business licenses.

Investors interested in postal service business licenses refer to the article: Postal service business license (https://luatvietan.vn/giay-phep-kinh-doanh-dich-vu-buu-chinh.html).

Some questions about the establishment of a foreign-invested postal service company

Can foreign investors establish postal service companies?

Under the investment law, postal law, and guiding documents, Vietnamese law does not restrict the establishment of a postal service company by foreign investors.

What is the maximum, minimum ownership rate of foreign investors in a postal service provider?

Postal services do not restrict the rate of ownership of foreign investors.

What are the Licenses to qualifying for postal business?

To be able to provide postal services, foreign-invested enterprises need at least the following licenses:

· Investment registration certificate;

· Certificate of enterprise registration;

· Postal license (internal, inter-provincial, or international);

· Notification of postal activities;

· License for transporting goods and badges of vehicles.

Service of the establishment of foreign-invested enterprises of Viet An Law Firm

· Advising on capital contribution ratio of foreign investors in Vietnam;

· Consultancy on selecting suitable types of companies for investors: Limited Liability Company or Joint Stock Company, head office address, capital, business line, opening capital transfer account, capital contribution term;

· Advising on conditions, guiding investors to prepare necessary documents for the establishment of foreign-invested companies;

· Advising and drafting company establishment dossiers for investors;

· Representatives of investors working with competent Vietnamese state agencies in the process of establishing enterprises for investors (Apply for investment registration certificates, enterprise registration certificates, make legal marks, announce seal samples, procedures after the establishment of the company, tax – accounting legal consultancy services, overseas profit transfer, labor – insurance, issues related to intellectual property rights …;

· Comprehensively advise on activities that arise during the implementation of business in Vietnam for investors.

The above are some conditions and attention that foreign investors establishing postal service companies need to pay attention to learn and implement. Customers wishing to learn about laws and legal regulations related to the establishment of a foreign-owned postal service company in Vietnam as well as issues related to foreign investment and enterprises in Vietnam, please contact Viet An Law Firm for more details!

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