In recent years, the film market, which is worth over US $ 100 million, is becoming an attractive piece of cake for foreign investors. CGV and Lotte – two brands from South Korea with strong financial potential have quickly expanded and become the main “player” in this constantly growing market. For the purpose of assisting foreign investors in establishing foreign-invested companies providing film projection services in Vietnam, Viet An Law Firm would like to request preliminary advice as follows:
Legal basis:
- International treaties: WTO, FTAs, AFAS
- The law of Vietnam: The 2006 Cinematography Law, amended in 2009
Investment conditions:
According to international treaties to which Vietnam is a party, conditions are:
- Ratio of foreign investors’ ownership in charter capital of a business organization: Not exceeding 51%.
- Investment form: Joint venture, business cooperation contract
- Vietnamese partners participating in investment: Must be permitted by a competent state agency to provide film projection services
- Other conditions: foreign investors, foreign-invested economic organizations may not enter into joint ventures or business cooperation contracts with cultural houses, film venues, film clubs and associations public, against the mobile football of Vietnam.
Law of Vietnam:
- Foreign organizations and individuals, Vietnamese residing overseas are entitled to cooperate in investment with film production enterprises, film distribution enterprises and Vietnamese film dissemination enterprises in the form of cooperation contracts. business or joint venture business establishment.
- For the form of investment in establishing a joint venture, the foreign investor’s contributed capital shall not exceed 51% of the legal capital
- Film projection organizations having popular permits granted by competent state management agencies in charge of cinematography or having broadcast decisions of heads of television, radio and television stations.
- The cinemas must show Vietnamese films in films celebrating the country’s holidays, serving political, social and external tasks according to the regulations of the Ministry of Culture, Sports and Tourism.
- The percentage of Vietnamese feature films screenings guaranteed to be at least 20% of the total number of screenings, of which Vietnamese feature films must be screened between the hours of 18:00 and 22:00 during the day, in addition to may show at other times.
- Screening time for children under 16 in the theater ends before 22:00.
Company establishment process:
Step 1: Registration of investment
Under the provisions of the 2014 Investment Law, foreign investors when establishing enterprises in Vietnam need to carry out investment registration procedures at the Department of Planning and Investment.
Documents to be prepared include:
- Written request for implementation of investment project (according to set form);
- Copies of identity card, identity card or passport for individual investors; copy of the Establishment Certificate or other equivalent documents certifying the legal status for institutional investors;
- Report of financial capacity of the investor;
- Business cooperation contract with respect to the form of investment under business cooperation contracts; Joint venture contract with respect to the form of investment in the establishment of a joint venture economic organization between domestic investors and foreign investors;
Processing time: 15 days from the date the Department of Planning and Investment receives complete documents, the investment registration authority issues the Investment Registration Certificate, in case of refusal, the investor must notify in writing. privately and clearly state the reason.
Step 2: Registration of business establishment
Pursuant to the current Enterprise Law, the establishment of an enterprise should carry out the following procedures:
Documents should be prepared:
- Application form for enterprise registration;
- Charter of company;
- List of members of limited liability companies or list of shareholders of joint-stock companies;
- Valid copy of one of the following documents:
- Valid ID card or valid passport for individuals;
- Business registration certificate, for organizations and enclosed with personal identification papers, authorization documents of authorized representatives of organizations;
- The decision to contribute capital to the company’s members, corporate shareholders being organizations;
Place of submission: Department of Planning and Investment where the company is headquartered.
Processing time: 05 – 07 working days.
Result: Business registration certificate.
Step 3: Get a film dissemination license
Profile include:
- An application for a license;
- Film copyright certificate.
Within fifteen days from the date of receipt of a complete and valid film and submitted film, the competent state management agency in charge of cinema is responsible for issuing the permit; In case of refusal to grant a permit, there must be a document clearly stating the reason.
Agency in charge: Ministry of Culture, Sports and Tourism or Provincial People’s Committee
Legal services for setting up foreign-invested companies of Viet An Law Firm:
- Consultancy on legal regulations and legal procedures related to the field of enterprises, investing in Vietnam;
- Consultancy legal regulations and procedures for establishing a company, apply for an Investment Registration Certificate, Enterprise Registration Certificate, business license (foreign-invested goods trading),
- Consultancy on business sectors subject to conditional business and specific conditions for each industry and investor of nationality;
- Drafting and submitting documents, working with competent state agencies, receiving the results of handing completed legal documents to customers;
Consultancy on the following issues such as contracts, taxes, Vietnamese labor, foreign workers working in Vietnam, intellectual property, franchising …
