Extend time for investment capital contribution is an important procedure to record a new deadline of capital contribution in the investment registration certificate when the company cannot make a capital contribution on time. In case of failure to perform the extension procedure before expiry, the investor will be penalized for administrative violations in the field of investment.
After being granted the Investment Registration Certificate, the investor has to perform contribute fully investment capital as registered to implement the project. Normally, the time for investment capital contribution within 90 days from the issuance date of the Business Registration Certificate of the company implements the project. The capital contribution on time is considered extremely important because overdue according to the time limit for capital contribution specified in the Investment Registration Certificate, The Bank will not allow receiving investment capital, the company can’t receive investment capital to implement the project. But, in the case the investor can’t contribute capital on time, the investor needs to make a procedure for an extended time for investment capital contribution
- The Law on Investment 2020;
- Decree 31/2021/NĐ-CP guiding some articles of the Law on investment;
- Decree 50/2016/NĐ-CP stipulated penalties for administrative violations against regulations on planning and investment
Condition for extending the time for investment capital contribution
- Still have a time limit for investment capital contribution until the time of submitting the document for extension;
- In case of submitting the document after the deadline of investment capital contribution, the company will be penalties for administrative violations or revokes investment registration certificates
Procedure for extending the time for investment capital contribution
Step 1: Document for extending the time for investment capital contribution
- To extend the time limit capital contribution, the investor has to submit 01 sets of documents for adjustment of the investment registration certificate to the Investment registration authority.
- The document registration or extend the time for investment capital contribution including:
- An application form for adjustment of the investment project;
- A report on investment project’s progress by the time of adjustment;
- The investor’s decision/the minutes of the meeting of the Board of Members/ the General Meeting of Shareholders/Owner of the economic organization on investment project adjustment
- Explanation of reasons for adjustment of investment projects;
- A copy of the Decision on approval (adjustment) of the investment policy or the Decision on approval (adjustment) of the investor or the Decision on approval (adjustment) of the investment policy concurrently with the investor approval or Certificate receive investment registration/investment certificate/investment license/business license.
- Other documents related to adjustment: confirmation on the amount of contribution capital; prove the financial capacity of the insufficiently contributed investment capital.
- Authorization letter in case of the investor does not directly submit the document
Step 2: Submit documents for extension of the deadline for investment capital contribution
After preparing the documents, the investor submits the documents to the competent investment registration authority. The investors declare online information about investment projects at the National Information System on Foreign Investment (fdi.gov.vn) and directly submit it to the competent investment registration authority; Within 15 working days from the days of declaration online, the investor has to submit the extension documents to the investment registration authority.
Step 3: Process the documents and get the result
Within 10 days from the receipt of the valid application, the investment registration authority shall adjust the investment registration certificate, record the new investment capital contribution time for investors.
Some note when extending the time for investment capital contribution
- When the deadline for capital contribution in the investment registration certificate expires, the investor contacts the inspector to sanction administrative violations on project progress. After completing the inspection and sanctioning procedures, the Investment Registration Authority will record an extension of the time limit for capital contribution for investors.
- Capital contribution extension time is registered by the investor in the extension document, the investment registration authority based on the project’s performance, will consider the extension and record it in the investment registration certificate.
- In case the business is not approved for an extension, the company must make a full capital contribution or register to reduce investment capital
- The charter capital of economic organization implementation of the project shall contribute sufficient and correct assets as promised when applying for enterprise registration within 90 days from the issuance date of the Certificate of Enterprise Registration. Therefore, if the investors have not contributed enough capital have to register to change the charter capital of the company by the provisions of the Law on Business 2020.
Some questions related to extending the time for investment capital contribution
Can the investment capital contribution be extended when overdue the deadline of investment capital contribution?
Before the expiration of the deadline for investment capital contribution, the investors need to submit the document to extend the deadline. In case the extension of the deadline for capital contribution expires, the investor may not be approved by the investment registration authority. The investors have to perform inspection and sanction procedures for failing to comply with the project implementation schedule and for not adjusting the investment registration certificate.
Is it possible to extend the investment capital contribution and adjust the investment project?
According to the lawn on investment 2020 and investment law guiding documents, The investors can both extend the capital contribution term and adjust other contents of the investment project.
What is the penalty when the investor fails to contribute investment capital on time?
The Penalties for violations on capital contribution are stipulated in Article 13 of Decree 50/2016/ND-CP. The lowest penalty for failure to fully contribute investment capital within the time limit is VND 20.000.000 – 30.000.000.
Clients Customers interested in the service of extending the deadline for investment capital contribution, please contact Viet An Law Firm directly for detailed advice.