Set up a company with 100% foreign capital in Hanoi

According to Hanoi Statistical Office, as of November 2020, the city attracts about 3.2 billion USD of foreign investment (FDI) capital. In which, the city granted 662 million USD of 464 newly-licensed projects and 1,245 million USD of 132 additional investment capital projects, the capital contribution and share purchase of foreign investors reached 1,280 million USD. Below, Viet An Law Firm would like to give some general guidelines for foreign investors who want to set up a company in Hanoi as follows.

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

• WTO commitments;
• Investment Law 2020 and guiding documents;
• Enterprise Law 2020 and guiding documents;
• Specialized legal documents related to the investment sector;
• A trade agreement with foreign investor countries;
• Decree No. 09/2018 / ND-CP detailing the Law on Commerce and Law on Foreign Trade Management regarding goods trading activities and activities directly related to the purchase and sale of goods by foreign investors. and foreign-invested economic organizations in Vietnam.

Procedures for granting investment registration certificates to companies with 100% foreign capital in Hanoi

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 issuance of an investment registration certificate according to the following process:

• Before carrying out the procedures for issuing an investment registration certificate, the investor must declare online national information on foreign investment online. 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 Office, the investor is granted an account to access the national foreign investment 
• 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 investment projects.

The situation of attracting investment capital in Hanoi

As of November 2020, Hanoi City had 26 newly licensed FDI projects with a total registered capital of 7 million USD, of which 24 projects with 100% foreign direct investment capital; 2 joint venture and partnership projects. Besides, there are 6 projects adjusted to increase investment capital with registered capital of 1 million USD; Foreign investors contribute capital, buy capital contribution to reach 52 million USD.

Regarding the situation of business registration, from the beginning of the year to the end of November 2020, Hanoi city had 24.6 thousand newly registered enterprises, registered capital reached 303.3 trillion dongs, down 16 %; implemented dissolution procedures for 2,269 businesses, up 20%; 10.1 thousand enterprises registered to suspend operations, up 43%; 5,774 businesses resumed operations, up 17%; The rate of online business registration documents is maintained 100%, ensuring quality and on time.

Application for a Business License

 (Applicable to companies with 100% foreign capital conducting goods sale and purchase activities and activities directly related to the purchase and sale of goods in Vietnam)

• An application for a business license (Form No. 01 in the appendix issued with Decree 09/2018 / ND-CP)
• Explanation of the conditions for granting the corresponding business license as prescribed in Article 9 of Decree 09/2018 / ND-CP;
• Business plan: description of the content, the method of doing business, presenting the business plan and developing the market; demand for labor; to evaluate the socio-economic impact and efficiency of the business plan.
• Financial plan: reports on business results based on audited financial statements of the most recent year in case of an establishment in Vietnam.

Service of establishing 100% foreign capital in Hanoi by Viet An Law Firm

• Counseling on the conditions for establishing foreign-invested companies for investors according to each specific business field or investor’s nationality;
• Advisory on the ratio of foreign investors’ capital contribution in Vietnam following Vietnamese laws and WTO commitments;
• Counseling on choosing the right company type for investors;
• Counseling on conditions, guiding investors to prepare necessary documents to establish foreign-invested companies;
• Consulting to draft company establishment documents for investors;
• The investor’s representative works with the Vietnamese authorities in the process of establishing the enterprise for the investor;
• Comprehensive consulting on activities arising in the process of doing business in Vietnam.