Foreign investment in vietnam’s advertising company
Because of the development of business, the demand for advertisement is substantially inceasing. That is the reason why there are so many advertising companies operating in Vietnam and foreign investors want to “make money” from them. However, foreigners who wishs to invest in this kind of company has to acknowledge the legal procedures in advanced. These procedures are regulated by The Law on Investment 2014, Law on Enterprise, Law on Advertising and the WTO Protocol on Accession.
The requirements which foreign investor investor must fulfill:
The investor’s charter capital:
Foreign investors are licensed to operate advertising company, provided they have joint ventures with Vietnamese partners (no limit to foreign side). Therefore, foreign investors can not establish a 100% foreign- invested advertising company;
The form of investment, operating scope, Vietnamese partners, and other aspects are conformable with the international agreements to which the Socialist Republic of Vietnam is a signatory:
On the form of investment to tourism companies: capital contribution or shares/ capital contributions purchase.
Registration of capital contribution or purchase of shares/capital contributions:
Application documents need prepared:
A written for registration of capital contribution or purchase of shares/capital contributions, which specify information about the business organization to which investment is made; the holding of the foreign investor after making investment;
A copy of the ID card or passport (if the investor is an individual); a copy of the Certificate of establishment or an equivalent paper that certifies the legal status of the investor (if the investor is an organization);
In case the investors authorize someone else to do this procedure on behalf of him/her, there must be a procuration or a service contract indicating person who will carry out this fomality.
The investor shall submit the application prescribed above at the Service of Planning and Investment of the province where the headquarter of the business organization is situated;
If the contribution of capital, purchase of shares/capital contributions satisfies all the conditions, the Service of Planning and Investment shall send a written notification to the investor within 15 days from the day on which the satisfactory application is received. If conditions are not satisfied, the Service of Planning and Investment shall notify the investor in writing and provide explanation.
After having permit from the Service of Planning and Investment, foreign investors can now contribute capital to an advertising company. That company will have to do the formalities to change members/shareholders prescribed by law.
Note: Under Vietnam’s regulations, foreign investors must open an investment capital account at a commercial bank in Vietnam. All activities of purchasing and selling shares, transferring contributed capital portions, collecting and using dividends and divided profits, remitting money abroad and other activities related to investment in Vietnamese enterprises shall be carried out via this account.
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