Set up a company with 100% foreign capital in Da Nang

In 2021, Vietnamese law has many preferential policies for foreign investors to invest in all economic sectors in Vietnam. Accordingly, when conducting investment to set up a company in Vietnam, foreign investors need to set up a company in Vietnam, foreign investors need to learn and grasp the provisions of the current law to ensure the best conditions when investing and doing business in Vietnam. A favorable investment environment, synchronous investment, many incentives for investors, public and transparent investment policies … are factors that help Da Nang become one of the areas that have attracted a lot of foreign direct investment in recent years across the country and mainly in industries such as real estate, tourism; processing industry.

Legal basis for setting up companies with 100% foreign capital in Da Nang

· WTO commitments;

· Investment Law 2020 and guiding documents;

· Specialized legal documents related to the investment sector;

· Trade agreement with national investor countries;

· Decree No. 09/2018/ND-CP detailing the Law on Commerce and the Law on Foreign Trade Management regarding goods trading activities and activities directly related to the purchase and sale of goods by foreign investors, foreign-invested economic organizations in Vietnam;

Situation foreign investment in Danang

· In 2020, Da Nang City High-Tech Zone has granted an investment registration certificate for the project “United States Enterprises Semiconductor Manufacturing Factory” with a total investment capital of 110 million USD.

· In 2020, activities to attract foreign investment FDI achieved positive results, which can be considered a “bright spot” in the economic landscape of the city. Specifically, last year, Da Nang granted 87 new FDI projects with a total registered capital of 129,177 million USD; 20 times of projects increased capital with total additional registered investment capital of 80,057 million USD; there were 105 times of foreign investors contributing capital, buying shares, or buying capital contributions in economic organizations with the value of 3.63 million USD.

· Da Nang city also received recognition from investors as a city with many policies to encourage and support enterprises in the fields of information technology and high technology, in addition to very quick guidance. Quickly enthusiastic about dossiers and procedures from administrative agencies, management is a strong advantage for investors to invest in Da Nang.

Procedures for granting investment certificates for companies with 100% foreign capital in Da Nang

For an investment project subject to an investment policy decision, the investment registration agency shall issue an investment registration certificate to the investor within 5 working days from the date of receipt of the written policy decision. invest.

For an investment project not subject to an investment policy decision, an investor shall carry out the procedures for grant of an investment registration certificate according to the following process:

· Before carrying out the procedures for granting an investment registration certificate, the investor shall make an online declaration of information about the investment project on the National Foreign Investment Information System. Within 15 days from the date of online declaration, the investor shall apply for Investment Registration Certificate to the Investment Registration Authority.

· 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 results of investment registration dossiers, update the application processing situation, and issue codes to participants. investment project 

· After completing the procedures for granting an investment certificate, the company with 100% foreign capital shall apply for an enterprise registration certificate like a Vietnamese company at the Business Registration Office – Department of Planning and Investment.

· In case a company with 100% foreign capital carries out goods sale and purchase and activities directly related to the sale and purchase of goods in Vietnam, it shall carry out additional procedures for a business license at the Service of Industry and Trade.

· For other professions with conditions, it is necessary to follow the procedures according to the conditions of each profession.

Incentives for investors when investing in Da Nang

1.                  Subjects of application of investment incentives

The following investment projects that are eligible for investment incentives include:

· Investment projects in sectors or trades subject to investment incentives, Clause 1, Article 16 of the 2014 Law on Investment, or sectors or occupations especially given investment incentives according to Appendix 1 to Decree No. 118/2015 / ND-CP.

· Investment projects in geographical areas with difficult socio-economic conditions, Clause 1, Article 16 of the 2014 Law on Investment or areas with extremely difficult socio-economic conditions specified in Appendix II to Decree 118 / 2015 / ND-CP;

· Investment project capitalized at VND 6,000 billion or more, disbursing at least VND 6,000 billion within 3 years from the date of issuance of Investment Registration Certificate or from the date on which policy is issued investment for projects which are not required to go through the procedures for issuance of an investment registration certificate;

· Investment projects in rural areas employing 500 or more workers (excluding part-time workers and workers with labor contracts of less than 12 months);

· High-tech enterprises, science and technology enterprises, scientific and technological organizations following the law on high technologies and law on science and technology.

2.                  Application form of investment incentives are as follows:

· Apply corporate income tax rates lower than normal tax rates for some time or the entire implementation period of an investment project; exemption or reduction of corporate income tax;

· Import tax exemption for goods imported to create fixed assets; raw materials, supplies, and components to implement an investment project;

· Exemption or reduction of land rent, land use levy, land use tax.

For example Business services, currently have the following limitations and incentives

1. WTO, FTAs: Not included in the Schedule.

 2. The Law of Vietnam: The scope of activities of foreign-invested economic organizations with the function of real estate business includes:

 – Renting houses and construction works for sublease.

 – For land leased by the State, to invest in the construction of houses for lease; investment in the construction of houses, construction works other than houses for sale, for lease, or hire purchase.

 – Receiving transfer of all or a portion of real estate project from an investor to build houses, construction works for sale, for lease, or lease purchase.

 – For land allocated by the State, to invest in the construction of houses for sale, for lease, or lease purchase.

 – For leased land in industrial parks, industrial clusters, export processing zones, hi-tech zones, or economic zones, to invest in the construction of houses and construction works for business purposes by the land use purposes.

Service of establishing a company with 100% foreign capital in Da Nang by Viet An Law Firm

· 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-invested companies in Da Nang;

· 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.