Set up a 100% foreign capital company in Hoa Binh

Hoa Binh province is the best place for a business investment environment. The natural conditions are beautiful and it also has an abundant labor force. In addition, Hoa Binh has a transport system directly connecting with the Hanoi capital and other provinces. In recent years, Hoa Binh province has brought into its advantages, implemented many solutions, and effectively attracted foreign direct investment. Many FDI projects have been put into production and business activities, contributing to promoting economic restructuring, resource growth, and ensure social security. In particular, according to the policy of the State, production enterprises must operate in industrial areas, thus there is a need for FDI enterprises to be established in industrial areas is very high outperforming the needs of establishment in residential areas.

To have the best services support for foreign investors to establish a foreign capital company in Hoa Binh, Viet An Law would like to detail the procedures to establish a foreign capital company in Hoa Binh through this article.

Basic steps to establish a foreign capital company in Hoa Binh:

• Step 1: Apply for an investment certificate;
• Step 2: Enterprise registration;
• Step 3: Engrave the legal seal, announce the use of the company’s seal sample;
• Step 4: Apply for a business registration license in case the company retails goods.

Procedures for granting the Investment Certificate:

Parties need to apply for the Investment Certificate:

• Company has from 1% to 100% of the capital contributed by foreign investors when that company is established;
• Foreign capital company (the company has been granted an Investment Registration Certificate in Vietnam) continues to establish more economic organizations; capital contribution; purchase of shares or capital contributions of economic organizations; investments under a BCC contract in one of the following cases must go through the procedures for issuance of an investment certificate: New establishment of capital contribution from 1% to 100% of the company’s charter capital;
• In cases foreign investors contribute capital to buy shares in Vietnamese companies that already have an enterprise registration certificate, even when buying up to 100% of the company’s capital contribution), they are not required to carry out the procedures for issuance of the Investment Registration Certificate except for the company doing business in the field of education and training if a foreign investor buys from 1% of the capital contribution, it is also required to carry out the procedures for issuing an Investment Registration Certificate:
  • Step 1: Establish a Vietnamese company;
  • Step 2: Apply for a qualifying license for the conditional occupations;
  • Step 3: Transfer the contributed capital to foreign investors;
  • Step 4: Apply for a business license in case the enterprise does retail activities and apply for another license according to regulations such as a fire protection license,…

Implementation process:

• Before applying for an investment registration certificate, the investors should declare information on the investment project online on the national foreign investment information system. Within 15 days from the date of online declaration, the investors shall apply for the Investment Registration Certificate to the Investment Registration Agency;
• After the application is received by the Investment Registration Agency, the investor is granted an account to access the National Foreign Investment Information System to monitor the application processing;
• The Investment Registration Agency uses the National Foreign Investment Information System to receive, process, and return the result of the investment registration dossier, update application processing, and grant investment project code.

Application for granting the Investment Registration Certificate for 100% foreign capital

Notices: For an investment project subject which is one of the cases that needs to be decided, the application shall comply with the provisions of Article 34,35,36 of the Law on Investment 2020; the investment registration agency shall grant an investment registration certificate to the investor within 05 working days from the date of receiving the written decision on investment policy.

For investment projects not required to an investment policy decision, the investor shall carry out the procedures for issuance of an investment registration certificate as follows:

• A proposal for investment project implementation;
• Copy of ID card/citizenship card or passport for the individual investor; a copy of a certificate of incorporation or other documents confirming the legal status of the institutional investor;
• An investment project proposal includes the following contents: investor implementing the project, investment objectives, investment scale, investment capital, and capital raising plan, location, investment duration and proposal for investment incentives, assessment of the project’s socio-economic impact and efficiency;
• Copy of one of these following documents: financial statements of the last 2 years of the investor; commitment to the financial support of the headquarter company; commitment to the financial support of a financial institution; guarantees on investors’ financial capacity; documents explaining the financial capacity of the investor;
• Proposal land use demand; in case the project does not request the State to allocate land, rent land, or permit the change of land use to propose, submit a copy of the rental agreement or other documents certifying that the investor has the right to use the area for investment project;
• Explanation on the use of technology for investment projects, for projects using technologies on the List of technologies restricted from transfer under the law on technology transfer, including the following contents: name of technology, the origin of technology, technology process diagram; main specifications, usage status of main machines, equipment, and technological lines;
• BBC contract for a BBC contract investment project.

The time limit for application processing:

Within 15 days from the date of receiving the application will be completed. In case of refusal, it must be notified in writing to the investor, clearly stating the reason.

Competence to grant the Investment Certificate:

• Management of industrial areas, export processing areas, hi-tech areas, and economic areas receive the Investment Registration Certificates for investment projects in industrial areas, export processing areas and hi-tech areas, economic areas;
• The Department of Planning and Investment shall receive and grant the Investment Registration Certificate for investment projects outside industrial areas, export processing zones, hi-tech areas, and economic areas;
• The Department of Planning and Investment where the investors locate or intend to locate the headquarter or executive office to implement the investment project shall receive the Investment Registration Certificate for the following investment projects:
  • Investment projects implemented in many provinces and centrally-run cities;
  • Investment projects implemented inside and outside industrial areas, export processing areas, hi-tech areas, and economic areas.

Company registration:

          After being granted the Investment Certificate, the enterprise will proceed with the business registration at the Business Registration Office – Department of Planning and Investment or via the page  https://dangkyquamang.dkkd.gov.vn.

          The time to do business registration now is only 03 – 07 days

Procedures for granting a business license at the Department of Industry and Trade (only applicable to companies doing business in the field of retailing goods):

• An application for a business license;
• Explanation meets the conditions; Experience confirmation;
• Notes to financial capacity, bank confirmation;
• Copy of the Investment Certificate; Business Registration Certificate;
• Certificate of land use rights;
• A power of attorney Viet An Law to apply.

Completion time: from 25 – 30 working days

Service of establishing a company with 100% foreign capital in Hoa Binh by Viet An Law

• Consulting on the capital contribution ratio of foreign investors in Vietnam;
• Consulting on choosing the right company type for investors: limited liability company or joint-stock company, head office address, capital, lines of business, opening capital transfer account, direct investment account, account Indirect investments, time limit for capital contribution;
• Consulting on conditions and guiding investors to prepare necessary documents to establish foreign capital companies in Hoa Binh;
• Consulting, drafting company establishment documents for investors;
• The investor’s representative works with the competent state agencies of Vietnam in the process of establishing an enterprise for the investor (Apply for an Investment Registration Certificate, Enterprise Registration Certificate, and Forums entity, announced sample point, following procedures established companies, services legal advice law tax – accounting, transfer of profits abroad, labor – insurance, the issues related to ownership wisdom…;
• Comprehensive consulting on activities arising in the process of doing business in Vietnam for investors.