For foreign-invested enterprises, when being granted an Investment Certificate/ Investment Registration Certificate, the project duration is fixed by a certain timeline from the date of issuance of the Investment Registration Certificate. Depending on each project, the duration of each project specifically recorded on the Investment Registration Certificate of each company is different. Therefore, when the project operation term is about to expire as recorded in the Investment Registration Certificate, the enterprise needs to carry out procedures for the extension of Investment Registration Certificate in Vietnam.
Legal basis
- Law on Investment 2020;
- Decree No. 31/2021/ND-CP detailing and guiding the implementation of a number of articles of the Investment Law;
- Decree No. 122/2021/ND-CP stipulates penalties for administrative violations in the field of planning and investment.
Time to submit the application for extension of the Investment Registration Certificate in Vietnam
Ideally, before the project’s license expires, about 03-05 months, the company needs to carry out procedures to extend the investment registration certificate and at the same time extend the project implementation period.
Documents for extension of Investment Registration Certificate in Vietnam
- Written request for extension of the operation term of the investment project;
- 02 (two) notarized copies of the Investment Certificate/Certificate of Business Registration of the Enterprise;
- 02 (two) notarized copies of tax identification numbers for businesses that have not yet issued a business registration certificate;
- Report on the implementation of the investment project up to the time of extension of the Investment Certificate/Extension of the investment project;
- Monthly, quarterly and annual reports submitted to the Department of Planning and Investment/ Management Board of Industrial Parks and Export Processing Zones;
- A notarized copy of the most recent year’s audited financial statement up to the time of extension;
- Documents proving the financial capacity of the investor;
- Proposed investment project: Agency area, email address, phone number of investor, company in Vietnam, total number of employees, number of Vietnamese employees, number of foreign employees;
- Notarized copy of the representative’s passport, confirming the representative’s residence;
- Legal documents related to the address of the head agency and the location of the project. Specifically: Location lease contracts and Real estate documents, construction decisions, etc.
- Notarized copy of Business License (if company has commercial activities)
Procedures for extension of Investment Registration Certificate in Vietnam
Number of Documents
- Enterprises draft and prepare four sets of documents according to the above-mentioned consulting items;
Formality Documents
- Documents made in Vietnamese or Vietnamese and English (Documents in foreign languages: must be translated into Vietnamese and notarized).
Agency receiving documents
- Department of Planning and Investment (Investment Department): For enterprises whose head agency and project implementation location is outside the industrial park;
- Management Board of Industrial Parks and Export Processing: For enterprises with headquarters and project implementation locations in industrial parks.
Time limit for completing procedures for extension of Investment Registration Certificate
- Within three working days from the date of receipt of valid documents, the investment registration agency shall send the documents to the land management agency and relevant agency to get opinions on the conditions specified in the Investment Law.
- Within 10 days from the day on which the valid application is received, the consulted agency shall give opinions on the satisfaction of the conditions specified in the Investment Law;
- Within fifteen days from the date of receipt of a valid application, the investment registration authority shall consider the conditions for extension of the operation term of the investment project, and consider and decide to extend the operation term of the investment project. private.
Note when extending the Investment Certificate
- An enterprise can only submit an application for extension of the Investment Registration Certificate if, by the time of extension, the enterprise has fully contributed capital as committed and fully complied with the investment reports and other conditions as specified in Article 3 of the enterprise’s investment certificate;
- Please contact Viet An Law so that our lawyer can send you a fee quote as well as a list of documents that you need to prepare to carry out the procedure.
Legal consequences if the enterprise does not extend the Investment Certificate
- Enterprises are only allowed to carry out investment activities within the operation duration of the investment project stated in the Investment Registration Certificate. Accordingly, when the operation term of an investment project expires, the investor must terminate the operation of the investment project return the issued Investment Registration Certificate, and carry out the closing procedures of the project.
- In case the operation term of an investment project has expired, but the investor wishes to continue implementing the investment project, he/she may apply for an extension of the operation term of the investment project and must satisfy all requirements prescribed by current law.
Therefore, if the investment certificate expires, investors who want to continue implementing the project without carrying out the procedures for adjusting or extending the operation term of the investment project will be sanctioned according to regulations. at 17 Decree 122/2021/ND-CP with a fine ranging from VND 70,000,000 to VND 100,000,000. At the same time, the remedial measure of “Forcing to notify the investment registration agency” was applied, i.e. forced to renew the Investment Certificate.
Viet An Law is a law firm with many years of experience in consulting procedures for establishing foreign-invested companies, procedures for adjusting investment certificates, and renewing investment certificates. If you have any difficulties or problems related to the investment certificate renewal procedure, please contact Viet An Law for advice and the best service!
