The demand for tourism is increasing, creating favorable conditions for tourism services to develop, especially accommodation services such as hotels. As a result, many foreign investors consider contributing capital to hospitality companies in Vietnam. But there are some legal procedures that these foreign investors have to know before thinking about how to run the business. The procedures to contribute capital in hospitality company are regulated by the Law on Investment 2014, Enterprise Law 2014, the Law on Tourism and the Commitments on Services of Vietnam in the WTO.
After receiving the permit, foreigners shall contribute capital to the hospitality company. The company receiving the capital contribution will carry out procedures for changing its members/shareholders in accordance with the law. But if foreign investors wish to contribute capital to establish a foreign-invested hospitality company, the implementation procedure are more complicated:
The investors should focus on the conditions of the location, the facilities and equipment, fire safety systems, qualified security, food safety (in case the company provide catering food and drinks service).
First, the foreign investor has to apply for Certificate of Investment registration. Then establishing a hospitality company. Besides, the investor also need to apply for Certificate of fire safty systems and Certificate of qualified security and other certificate prescribed by law. Within three months after commencement of operation, the owners of tourist accommodation establishments shall submit dossiers of registration of the class of tourist accommodation establishments to competent state agencies in charge of tourism for appraisal and classification of their establishments.
Due to the fact that these procedures require many paperwork and take really long time, it would be easier for the foreigners to contact with a law firm for details.
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