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Foreign investors contribute capital to tourism companies
Tourism services are one of the industries that many countries are aiming to develop, tourism is also a form of entertainment that many people love. At present, the world is gradually reopening after the pandemic, the need for travel, entertainment, recreation, and relaxation is increasing. Establishing a tourism service business is a form of business that brings a lot of potential for investors.
Why should you invest in a travel company in Vietnam?
With many advantages in terms of geographical location, climate, and natural conditions, Vietnam has great potential for tourism development. With a long coastline with many beautiful beaches, many historical sites and natural and cultural heritages recognized by UNESCO, Vietnam has attracted millions of domestic and foreign tourists every year. After a long period of the pandemic, the tourism industry is showing signs of strong recovery, reaching 100 million domestic visitors and 3.6 million international visitors in 2022. In 2023, Vietnam will invest heavily in tourism and set a higher development target with expected revenue increasing by 30%.
Conditions for foreign investors to contribute capital to a travel company
- Capital contribution ratio: foreign investors contribute capital to a travel company licensed to operate travel agency services and tour operations on the condition that they must form a joint venture with a Vietnamese partner (no limit on foreign capital contribution). Therefore, foreign investors cannot establish a 100% foreign-invested travel company.
- Form of capital contribution investment, scope of operation, Vietnamese partners participating in investment activities and other conditions according to the provisions of international treaties to which Vietnam is a member:
+ Regarding the form of investment in a travel company: contributing capital, buying shares, buying capital contributions of a travel company in Vietnam;
+ Scope of operation: A foreign-invested travel company is only allowed to organize bringing foreign tourists into Vietnam (inbound), and is also allowed to provide domestic travel services as part of the service of bringing tourists from abroad to Vietnam. Foreign-invested tourism companies are not allowed to organize overseas tours for Vietnamese tourists (outbound);
+ Tour guides in foreign-invested enterprises must be Vietnamese citizens.
Procedures for foreign investors to contribute capital to a tourism company
Step 1: Apply for an investment registration certificate
Documents to be prepared:
- A written request to implement an investment project (according to Form A.I.1 issued with Circular 03/2021/TT-BKHĐT);
- A certified copy of personal identification documents (ID card, citizen identification card or passport) for individual investors; a copy of the Business Registration Certificate for institutional investors;
- A certified copy of one of the documents related to the investor (financial statements of the last 2 years of the investor; Financial support document/commitment of the parent company; Decision/commitment of financial support of the financial institution; …);
- The investment project proposal includes the following contents: the investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, investment progress, labor demand, proposal for investment incentives, assessment of the project’s socio-economic impact and efficiency;
- Document explaining the technology used in the project;
- Contract for leasing the location or other documents confirming the investor’s right to use the location to implement the investment project;
- BCC contract for investment projects in the form of BCC contracts.
Submit the application for an investment registration certificate to the investment registration agency at the Foreign Economic Affairs Department – Department of Planning and Investment of the province where the head office is located.
Within 15 working days from the date of receipt of the application, the Investment Registration Office – Department of Planning and Investment of the province shall consider and issue the investment registration certificate; in case of refusal, it must be made in writing and clearly state the reasons.
Step 2: Investors carry out procedures to register capital contribution, purchase of shares, capital contributions to a tourism company.
Documents to be prepared:
- Registration document for capital contribution/purchase of shares/capital contributions of foreign investors
- Copies of legal documents of individuals, organizations contributing capital, purchasing shares, purchasing capital contributions and economic organizations with foreign investors contributing capital, purchasing shares, purchasing capital contributions
- Agreement document on capital contribution, purchase of shares, purchase of capital contributions between foreign investors and economic organizations receiving capital contributions, purchasing shares, capital contributions;
- Copy of land use right certificate of economic organizations receiving capital contributions, shares, capital contributions of foreign investors.
Submit application for approval of share purchase to the investment registration agency under the Department of Planning and Investment of the province where the head office is located.
Within 15 working days from the date of receipt of valid dossiers, the provincial Department of Planning and Investment shall consider and issue a notice of approval for the purchase of shares and capital contributions; in case of refusal, a written document must be made stating the reasons.
Step 3: Apply for a business registration certificate.
Required documents:
- Application for business registration (According to the form in Circular 02/2019/TT-BKHĐT);
- Company charter;
- List of members (for LLCs) or list of shareholders (for joint stock companies);
- Valid copy of one of the following documents: Personal identification documents: Citizen identification card, Identity card, Passport or other legal personal identification of founding shareholders and individual shareholders who are foreign investors; Decision on establishment of a foreign legal entity, Certificate of business registration or other equivalent documents of the organization and authorization document; Personal identification documents of the authorized representative of founding shareholders and shareholders who are foreign investors who are organizations;
- Issued investment registration certificate.
Place to submit application for business registration certificate:
- Business Registration Office – Department of Planning and Investment.
- Submit an application online at the national business registration information portal (dangkykinhdoanh.gov.vn).
After receiving the application, the Business Registration Office will issue a receipt of the application to the applicant.
Within 03 working days from the date of receiving the application, the Business Registration Office – Department of Planning and Investment will issue a business registration certificate. In case of refusal to issue, a written notice stating the reason must be given.
Process 4: Apply for a travel service business license
Documents to prepare:
- Application for a domestic and/or international travel service business license according to the form
- Certified copy of the Business Registration Certificate, Investment Registration Certificate;
- Certified copy of the travel service business deposit certificate;
- Certified copy of the appointment decision or labor contract between the travel service business enterprise and the person in charge of the travel service business;
- Certified copy of the diploma or certificate of the person in charge of the travel service business.
Place to submit the application for a travel service business license: General Department of Tourism;
- Address: 80 Quan Su Street, Cua Nam, Hoan Kiem, Hanoi.
- Phone number: 02439423760
Within 10 days from the date of receiving valid documents, the General Department of Tourism shall appraise and issue an International Travel Service Business License to the enterprise and notify the provincial tourism authority where the enterprise is headquartered; in case of refusal, a written notice must be given stating the reasons.
| Consulting support |
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| Instructions for preparing documents | Instructions for preparing necessary documents and information to prepare supporting dossiers for foreign investors to contribute capital to travel companies. |
| Team | Including leading Vietnamese lawyers and experts with high qualifications and many years of experience in the investment field. |
| On behalf of customers, carry out procedures at competent state agencies. | Quick and convenient procedure. |
| Experience | > 10 years. |
Siglaw is always ready to discuss and support customers with necessary information during the process of customers carrying out procedures. Please contact Siglaw law firm for specific advice.
Head office in Hanoi City: No. 44/A32 – NV13, Area A Glexemco, Le Trong Tan Street, An Khanh, Hoai Duc, Hanoi City.
Email: [email protected]
Southern branch: A9.05 Block A, Sky Center Building, No. 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
Email: [email protected]
Hotline: 0961 366 238
| Company formation services | Siglaw provides full-package |
|---|---|
| Register for business license | Procedures for individuals and organizations to be allowed to do business |
| Work permit service | Help customers shorten the time to receive work permits, consult and support to prepare complete documents |
| Sublicense service | With many years of experience consulting on applying for all kinds of sub-licenses. |
| Temporary residence card service | Ensure to provide good quality service |
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Phone: (+84) 961 366 238
Email:
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
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