The investment form in Viet Nam

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The investment form in Vietnam
The investment form in Vietnam

Foreign investors when setting up business in Viet Nam need to be advised by a law firm in Viet Nam on forms of investment.

According to the Viet Nam law on Investment, foreign investors can invest in Viet Nam through direct investment and indirect investment.

  1. The direct investment

The direct investment is when the investor invests its invested capital and participates in the management of the investment activities, includes:

–  Established economic organizations in the form of 100% owned by domestic investors, or 100% owned by foreign investors.

– Established joint venture economic organizations between domestic and foreign investors.

– Investment in the form of contract: BCC, BO, BTO, BT.

– Investment in business development.

– The purchase of shares or contribute capital to participate in management activities.

– To invest in the carrying out of a merger and acquisition of an enterprise.

– To carry out other forms of direct investment.

– The Foreign investor will be considered for acceptance by the competent authorities and be granted Investment Certificate.

  1. The indirect investment

The indirect investor means a form of investment whereby the investor contributes the capital but do not participate directly in the management of the investment activity, includes:

– The purchase of shares, shareholding, bonds and other valuable papers.

– Through securities investment funds.

– Through other intermediate financial institution.

  1. The types of business to foreign investors investing in Vietnam

a, Limited liability company

Limited liability company is a form of business which is established by the contribution of members. Members shall be responsible for the debts and other property obligations of the enterprise within the amount already committed to contribute to the business.

There are 2 types of limited liability company:

– One member Limited Liability Company is a business owned by one organization or individual.

– Limited Liability Company with two or more members is a business owned by organization or individual, in which the number of members shall not less than two members and not exceed fifty.

b, Joint-stock Company

Joint-stock Company is a business which has the charter capital divided into equal portions called shares. The minimum number of shareholders shall be three and there shall be no restriction on the maximum number.

 Shareholders shall be liable for the debts and other property obligations of the business only within the amount of capital contributed to the business.

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.

c, Business partnerships

Business partnerships must have at least two members are co-owners of the company business together under a common name. In addition to the unlimited partner party, may have limited cooperation partners.

Business partnerships must have at least two members are co-owners of the company business together under a common name. In addition to the unlimited partner party, may have limited cooperation partners.

d, The Representative office of the foreign trader

The Representative office of the foreign trader in Viet Nam is subordinate units of foreign traders established under the laws of Vietnam to survey the market and do some commercial activity enhancement permitted Vietnamese law.

The Representative office must applicants and permit the establishment; seal named representative offices.

A representative office is not directly conducting profitable activities in Vietnam.

e, The branch office of the foreign trader

The branch office of the foreign trader is subordinate units of foreign traders established under the laws of Vietnam  in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

The Branch will need to apply and obtain the establishment license and have a seal bearing the name of the Branch.

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for the establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

We are committed to always accompany you during business operations. your business or individual have any questions please contact us at:

Address: 5th floor, no. 100 Thai Ha, Dong Da Dist, Hanoi
Hotline: 0962690696 (support 24/7) – Lawyer: Minh Phuong
Website: http://www.tuvanvietluat.com.vn/
Email: info@tuvanvietluat.com.vn

 

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