Process of establishing an Indonesian invested company in Vietnam

Although there are not many large investment projects from Indonesia to Vietnam, the potential for economic cooperation between these two countries is huge. Both countries have strengths in tropical agriculture. Indonesia can provide high-quality plant varieties and livestock, while Vietnam can provide processing and distribution technology. Indonesia is rich in energy resources, especially oil and gas. Vietnam has a great demand for energy to serve the process of industrialization and modernization. The cooperation in the production of the above and other industries related to organic agricultural products, clean agricultural products and deeply processed products will not only meet the demand for domestic consumption but also expand the export market, bringing economic benefits to both countries. Viet An Law would like to guide clients through the procedures for establishing an Indonesian invested company in Vietnam through the article below.

Industries that can cooperate between Indonesia and Vietnam

Agriculture and Fisheries

• Exchange of plant and animal varieties: Both countries have strengths in tropical agriculture, and the exchange of high-quality plant and animal varieties will improve productivity and diversify products.
• Processing and exporting agricultural products: Cooperation in the field of agricultural product processing will create products with high added value, meeting domestic and foreign market demands.
• Fisheries: Developing aquaculture, sustainable seafood exploitation and seafood processing for export.

Energy

• Renewable energy: Cooperate in the development of renewable energy sources such as solar, wind, and hydropower.
• Oil and gas exploitation and processing: Indonesia has large oil and gas reserves, Vietnam has modern exploitation and processing technology, cooperation will bring benefits to both sides.
• Biomass Energy: Harnessing the potential of biomass energy from agricultural products.

Travel

• Ecotourism development: Exploiting eco-tourism and cultural tourism destinations.
• Cooperation in tourism promotion: Organizing joint tourism promotion events, building associated tourism products.

Process to establish an Indonesian invested company in Vietnam

Indonesian investors apply for investment certificates in Vietnam

Dossier of application for an investment certificate

• Written request for implementation of the investment project;
• An investment project proposal includes the following contents: the investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment schedule, labor demand, proposal for investment incentives, impact assessment, etc socio-economic efficiency of the project;
• Dossier proving the company’s head office: Lease contract, Notarized copy of real estate documents of the lessor: Land use right certificate, Construction permit; if the lessor is a company: It is necessary to provide a copy of the enterprise registration certificate with the function of real estate business;
• Confirmation of account balance corresponding to the capital intended to establish an FDI company is consular legalized and notarized

Depending on whether the investor is an individual or a legal entity, it will be necessary to provide the following additional documents:

Place of application: Department of Planning and Investment where the head office is expected to be located.

Processing order: Within 15 days from the date of receipt of a complete and valid dossier, the Department of Planning and Investment will issue an Investment Registration Certificate to the foreign investor. In case of refusal, the Department of Planning and Investment will reply in writing and clearly state the reason.

Indonesian investors apply for enterprise registration certificates in Vietnam

Application for Certificate of Registration of Indonesian Capital Enterprise

• Application for enterprise registration;
• Charter of the enterprise;
• List of members of a limited liability company with two or more members or a list of general partners;
• A notarized copy of the identity card or valid passport of the individual member; a notarized copy of the enterprise registration certificate of the member being an organization; a notarized copy of the valid identity card or passport of the legal representative of that organization;
• The investment registration certificate of the Indonesian investor has been completed above.

Place of application: Department of Planning and Investment where the enterprise is headquartered.

Duration: 03 – 06 working days.

Indonesian investors carry out post-establishment procedures to conduct business activities in Vietnam

Engraving the legal entity seal after having a tax identification number

After the business has a tax identification number, engraving the legal entity seal is an important step to complete the establishment procedure. The legal entity seal is an official identification sign of the business, used in transactions and legal documents.

Making company signs hanging at the head office

Hanging company signs at the head office is an important step to affirm the existence and image of the business. However, to ensure compliance with legal regulations and make a good impression, you need to pay attention to the legal regulations on signboards:

• Location: Signboards must only be placed close to the gate or front of the head office or place of business.
• Dimension:
• Content: The signboard must clearly state the name of the enterprise, the address of the company’s head office, tax identification number, contact phone number and sub-license number if any.

Open an account with 100% Indonesian investment capital in Vietnam and contribute capital

Preparation of dossiers for opening investment capital accounts includes:

• Enterprise establishment license or investment registration certificate.
• Investor’s identity document (passport, visa).
• Documents proving the legal origin of the investment capital.

Place to apply: Submit the application at the selected bank.

The bank will conduct the appraisal of the dossier and open an investment capital account for the investor.

After having an investment capital account, the company with foreign capital contributed capital. Note that enterprises need to fully contribute the registered capital within 90 days from the date of issuance of the business registration certificate.

• Money transfer: Investors transfer money from an overseas account to an investment capital account opened in Vietnam.
• Confirmation: The bank will confirm the transfer of capital contribution.