Enterprise
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DISPUTES ARISING DURING INVESTMENT PROCESS IN VIETNAM
During investment process in Vietnam, investors may face some troubles slowing down investment schedule or affecting their business. These disputes may appear in different aspects: Disputes with target companies: Among foreign investment methods in Vietnam, capital contribution, shares/capital purchase are the most common ones as they save time and are simpler than others. However, to purchase a company in Vietnam, foreign investors may face some legal issues like conditional business sectors. When purchasing one, investors should thoroughly conduct due diligence, especially, satisfaction of business conditions. Assuming that a company which has not applied for sublicenses of a conditional business sector or has not satisfied required conditions, there is a potential risk that they would hide those facts. Dispute with employees: Employers shall ... -
HOW TO SHUT DOWN A REPRESENTATIVE OFFICE
Arcoding to Vietnam’s Law on Enterprise 2014, a representative office of an enterprise shall be terminated under a decision of the enterprise or a decision to revoke the Certificate of registration of representative office issued by a competent authority. For Vietnamese merchants: Procedures: - Enterprises prepare complete documents as requested by the business registration department and submit them within the prescribed time limit; - Business Registration Office shall receive the notification, examine the documents, change the status of the representative office on National Enterprise Registration Database to “shut down”, and issue a notification of shutdown of the representative office. - Time limit for processing documents: 05 working days after receiving dossiers. No fee charge Documents needed includes: - The decision ... -
CAPITAL CONTRIBUTION IN VIETNAM
According to the Law on Investment 2014, the Law on Enterprises 2014 and documents providing guidelines for implementation, foreign investors may invest in Vietnam by contributing capital, buying shares or buying capital contributions of Vietnamese enterprises. Vietnamese enterprises are which were established in Vietnam and are in operation, including 100% local-owned enterprises and foreign-invested enterprises. The investment process shall be regulated as follows: Methods for capital contribution in Vietnamese enterprises for foreign investors: - Buy shares of joint-stock companies from the companies or their shareholders through IPOs or additional issuance; - Buy capital contributions in limited liability companies which were contributed by their members and become members of limited liability companies; - Buy capital contributions in partnerships which were contributed ... -
FOREIGN BIDDERS LICENSE IN VIETNAM
Different from local contractors, a foreign contractor must be granted the Construction License in accordance with each construction contract after winning bid. Procedures for issuance of the Construction License of foreign contractor is regulated in Decree No. 59/2015/NĐ-CP (on construction project management) and Circular No. 14/2016/TT-BXD (providing guidelines for the issuance of construction licenses and the management of foreign construction contractor in Vietnam, which has been effective from August 15, 2016). A dossier for requirement for issuance of the Construction License of foreign contractor: - An application form for the Construction License (using the form prescribed in the Annex 1 of Circular No. 14/2016/TT-BXD); - Certified as true copies of the report on bidding result or legal decision on bidding ... -
ADJUST THE INVESTMENT REGISTRATION CERTIFICATE IN VIETNAM
According to the Law on Investment 2014 which is effective from July 1st 2015, if foreign enterprises in Vietnam (mean those are established under the law of Vietnam and international agreements to which the Socialist Republic of Vietnam is a member) want to change any information on the Certificate of Investment Registration such as investor’s information, enterprise’s information, investment project’s information (objectives, scale, location, method, capital and duration), investors have the obligation to perform the procedures for adjustment of the Certificate of Investment Registration and the Certificate of Business Registration. I - For an investment project which is not subject to a decision on investment policies. A dossier for adjusting the Certificate of Investment Registration includes: - A written request for ... -
ESTABLISH REPRESENTATIVE OFFICE IN VIETNAM
From August 20, 2016, Circular No. 11/2016/TT-BCT, providing guidelines for Decree No. 07/2016/NĐ-CP (providing detailed regulations on establishment of representative offices of foreign traders in Vietnam), has become effective. There are many new regulations which regulate the dossier, procedures and operation of representative offices of foreign enterprises in Vietnam. Conditions of establishment of representative offices of foreign traders in Vietnam: A foreign traders shall be granted the Establishment of Representative Office License when the following conditions are satisfied: The foreign enterprise was established and registered under the law of the foreign country which is a member of any international agreement to which Vietnam is a member too or under the local law of the foreign country; The foreign enterprise has ...
