Foreign investors contribute capital to market research company

Foreign investors contribute capital to market research company

 

What are the conditions for foreign investors to contribute capital to market research enterprises in Vietnam? What are the procedures for contributing capital to a market research company? Please find out more details in this article:

 

What is capital contribution to a market research company?

 

First, a market research company is a type of business that uses market research to communicate directly with potential customers and test the feasibility of new products and services. Market research allows companies to reach their target markets and receive real-time opinions and feedback from consumers.

 

Second, foreign investors contribute capital to a market research company in the form of using their own assets (which can be money, or other valuable assets) to contribute to the charter capital of the company, whether before the company is established or after the company has been operating.

 

Third, the act of investors contributing capital to a market research company is the act of using assets to contribute to the charter capital of a market research company by foreign investors.

 

What are the common methods used by market research companies?

• Surveys: respondents can use phones, links, direct survey sheets, etc. to answer available questions.
• Focus groups: groups will be formed for surveys, these groups may have common points, and then they will also answer questions or situations and the answers, the results of the test will be recorded.
• Qualitative interviews: 01 participant will talk to 01 organizer at a certain time and answer questions, usually open-ended questions, encouraging respondents to give the most in-depth feedback possible.
• Listening to opinions on social networks: create a series of questions and listen to users’ opinions on social networks
• Observation: can film the person being tested, and analyze that person’s habits and behaviors depending on the purpose of the research.
• Field testing: let users use the product in their daily activities, and for a certain period of time.
• Competitive analysis: the researcher will collect information from competitors and analyze them to learn or gain experience from the mistakes of competitors
• Public data: analysis through data available online
• Purchase data: the researcher will pay a sum of money to buy information about the research subject depending on the purpose of the research program.
• Sales data analysis: the analyst will learn, research, analyze the sales process of his company and give lessons, experiences or strategies needed in the future.

 

Conditions for foreign investors to contribute capital to market research companies

Foreign investors contributing capital to market research companies

Vietnamese law allows all individuals and organizations to use 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 that are prohibited from contributing capital to a market research company according to Article 17 of the 2020 Enterprise Law:

• State agencies (e.g. the National Assembly, the President, the Government, etc.), or people’s armed forces units using state assets to invest in enterprises for personal gain for the organization they are working for.
• Other entities that the Law on Public Employees; the Law on Cadres and Civil Servants; the Law on Anti-Corruption does not allow to contribute capital to establish a market research company (if any)

 

Charter capital of foreign investment in market research companies

For companies operating in market research activities, the minimum capital contribution ratio is not required by Vietnamese law. There are various forms of capital that foreign investors can contribute to market research companies, providing flexibility for 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, Vietnamese Dong, etc.);

Land use rights and assets attached to land (houses, buildings, forests for production; construction works; etc.), intellectual property rights (copyrights, patents; rights related to copyright, etc.)

Technology and technical know-how. For example: Coca-Cola’s beverage production formula.

 

Types of market research companies 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. Or in case investors contribute additional capital after the market research company has been established, they are allowed to contribute capital by purchasing shares in a joint stock company, contributing capital to a limited liability company and a partnership.

Procedures for foreign investors to contribute capital to a market research company

Foreign investors contribute capital to an operating market research company

Step 1: Prepare documents to register for capital contribution to a market research company

• 01 original copy of the Registration for capital contribution, purchase of shares, and capital contribution. Contents include: Information of the company receiving the capital contribution (address, name, enterprise code, …), the ratio of charter capital ownership of the foreign investor after contribution.
• 01 certified copy of ID card/passport (for individual investors); or 01 certified copy of the Enterprise Registration Certificate or other equivalent document (for institutional investors).
• 01 Power of Attorney and 01 corresponding authorization document (if the investor does not directly submit the application but authorizes another person)

Step 2: Submit the application for capital contribution to the market research company

Submission location: Business Registration Office of the province/city where the market research company is headquartered. For example:

• 90G Tran Quoc Toan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City.
• 6th Floor, 27-storey building, Vo Chi Cong Inter-agency Area, 258 Vo Chi Cong Street, Xuan La Ward, Tay Ho District, Hanoi (Hanoi Regular Technology Transaction Center Building).

Step 3: Receive results: 15 days from the date of receipt of valid application

 

If the capital contribution is not allowed, the Investment Registration Office will notify 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 lease contract to implement the investment project.
• 01 certified copy of Vietnamese ID card/CCCD/passport (if joint venture with Vietnam);
• 01 certified copy of 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 certified, translated into Vietnamese and notarized.
• Investment project proposal. The proposed content includes quite a lot, which are: investor information, objectives, scale, capital sources and capital mobilization plans, location, project completion deadline and investment plan, proposed investment incentives, labor demand, impact assessment, etc.
• 01 certified copy of the Enterprise Registration Certificate of the foreign organization (if it is an organization);
• 01 certified copy of the ID card/passport of the investment representative of the foreign investment organization in Vietnam (if it is an organization);
• 01 annual financial statement audited by a foreign agency in the last two years (must be confirmed by the consular agency and valid for 90 days) ((if it is an organization)

Step 2: Submit an application for an Investment Certificate to the Investment Registration Office – Department of Planning and Investment, where the enterprise is headquartered

 

Step 3: Establish an FDI enterprise to conduct market research

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
• vphcm@siglaw.com.vn

Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.

Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.

Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City

Facebook: https://www.facebook.com/hangluatSiglaw