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Foreign investors contribute capital to market research company
What is contributing capital to a market research company?
Firstly, a market research company is a business researching the market to communicate with potential customers and check the possibility of new products and services. Researching the market allows companies to find the target market and receive comments and clients’ feedback based on real time.
Secondly, foreign investors contribute capital to a research market company in the form of using their assets (which can be money or other valuable assets) to contribute to the company’s charter capital, whether before the company is established or after the company is in operation
What are the common methods used by market research companies?
- Survey: people being surveyed can use phone calls, links, direct surveys, etc. to answer scheduled questions.
- Focus groups: a group of people who can have the same pattern will do the survey, they will answer questions or situations, the results of the experiment will be recorded.
- Qualitative interview: A participant will talk to 1 organizer at a certain time and answer questions, usually open-ended, encouraging respondents to give the most in-depth responses.
- Opinions on social networks: A series of questions can be created and then, listen to the comments on social media.
- Observation: you can film a tested person, and analyze that person’s habits and behavior depending on the purpose of research.
- Field testing: you will let users experience the product daily at a specific time
- Competitive analysis: the researchers will collect competitor information and analyze it to learn from competitors’ mistakes.
- Public data: available online data will be analyzed
- Buying data: the researcher will pay a sum of money to purchase information about the researched subject depending on the purpose of that research program.
- Analyzing sales data: analysts will learn, research and analyze their company’s sales process and provide lessons, experiences or strategies needed in the future.
Conditions for foreign investors to contribute capital to a market research company
Vietnamese law allows all individuals and organizations to have the right us their assets to contribute capital to a company, whether contributing capital to establish a company or contributing additional capital, except for the following individuals and organizations who are banned from contributing to market research companies according to Article 17 of the Enterprise Law 2020:
- State agencies (National Assembly, the President, the Government, etc.) or people’s armed units use state assets to pour capital into business for personal gain for the organization they are working for.
- Other subjects which the Law on Public Employees; Law on Cadres and Civil Servants; the Anto-corruption Law that does not allow capital contribution to establish a market research company (if any)
Charter capital for foreign investment in a market research company
For companies conducting market research business, the minimum capital contribution ratio is not required by Vietnamese law. There are diverse forms of capital that foreign investors can contribute to market research companies, providing flexibility to investors, and attracting them to invest more in these companies in Vietnam. Specifically, foreign investors can also contribute capital in three forms:
- Real gold, cash (USD, Euro, Vietnam Dong,…);
- Land use rights and assets attached to land (houses, buildings, forests for production; construction works;…), intellectual property rights (copyrights, patent rights; rights related to copyright,…)
- Technology and technical know-how. For example: Coca-Cola’s beverage production formula.
Type of market research company that can contribute capital to
In case foreign investors contribute capital to establish a company from the beginning, they will be allowed to contribute capital to limited liability companies and partnerships. In case investors contribute additional capital after the market research company has been established, they are allowed to contribute capital by buying shares in joint stock companies, contributing capital to limited liability companies and partnerships.
Process for foreign investors to contribute capital to a market research company
Foreign investors contribute capital to an active market research company
Step 1: Prepare documents to register for capital contribution to a market research company
- 01 original copy of registration of capital contribution, share purchase, capital contribution. Content includes information on the company receiving capital contribution (address, name, business code,…), and the charter capital ownership ratio of foreign investors after contribution.
- 01 certified copy of ID card or passport (for individual investors); or 01 certified copy of the Certificate of Establishment or other equivalent document (for institutional investors).
- 01 Power of attorney and 01 corresponding authorization document (if the investor does not submit the application himself but authorizes another person)
Step 2: Apply a capital contribution registration for a market research company
Place of submission: Business registration office of the province/city where the market research company is headquartered. For example:
- No. 90G Tran Quoc Toan Street, Vo Thi Sau Ward, District 3, City. Ho Chi Minh.
- 6th floor, 27-storey building, Vo Chi Cong Complex, No. 258 Vo Chi Cong Street, Xuan La Ward, Tay Ho District, Hanoi
Step 3: Receive results: 15 days from the date of receiving valid documents
If capital contribution is not allowed, the Investment Registration Office will notify you in writing.
Foreign investors contribute capital to establish a market research company
Step 1: Application for Investment Certificate
- 01 Application for investment project implementation.
- 01 copy of house/office rental contract to implement investment project.
- 01 certified copy of Vietnamese ID card or passport (if joint venture with Vietnam);
- 01 certified copy of the foreign investor’s passport (for foreign individuals)
- 01 Certificate of foreign investor’s account balance at least equal to the investment amount. If the account is abroad, the documents must be consularly authenticated, translated into Vietnamese and notarized.
- Investment project proposal. The proposed content includes investor information, objectives, scale, capital source and capital mobilization plan, location, project completion deadline and investment plan, investment incentives proposal, labor needs, impact assessment, etc.
- 01 certified copy of the Business Registration Certificate of the foreign organization (if it is an organization);
- 01 certified copy of the ID card or passport of the investment representative of a foreign investment organization in Vietnam (if an organization);
- 01 annual financial statement audited by a foreign agency for the last two years (must be confirmed by the consulate and valid within 90 days) ((if an organization)
Step 2: Apply for an Investment Certificate at the Investment Registration Office – Department of Planning and Investment, where the enterprise is headquartered
Step 3: Establish a market research FDI enterprise
Siglaw is always ready to give advice and support customers with necessary information during the process of carrying out procedures to change the investor’s address. Please contact Siglaw law firm for specific advice
Phone: (+84) 961 366 238
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