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Establishment of foreign investor’s executive office in BCC contract
The establishment of an executive office of a foreign investor in a BCC contract is a suitable provision, creating favorable conditions for foreign investors in the process of operating and implementing projects in Vietnam when the investor does not invest in the form of establishing an economic organization.
Investment in the form of a BCC contract or a business cooperation contract is one of the investment forms recognized by Vietnamese law. Accordingly, this is a contract signed between investors to cooperate in business, share profits, and share products in accordance with the provisions of law without establishing a company or enterprise. The Investment Law 2020 allows foreign investors when investing in this form to establish an executive office of the project.
According to the provisions of the Investment Law 2020, to implement a business cooperation contract (BCC contract), foreign investors in this contractual relationship are allowed to establish an executive office in Vietnam. The location of this executive office shall be decided by the foreign investor in the BCC contract according to the requirements for contract implementation.
The article will provide an overview of the documents; procedures for establishing an executive office of a foreign investor in a BCC contract.
Establishment of foreign investor’s executive office in BCC contract
Documents for establishing the executive office of foreign investors in BCC contracts
According to the provisions of the Investment Law 2020, to establish an executive office of a foreign investor in a BCC contract, the investor must submit a dossier to establish an executive office to the investment registration authority where the investor plans to locate the executive office. Accordingly, the investor submits 01 set of dossiers directly or by post to the Department of Planning and Investment where the executive office is planned to be located.
The dossier includes the following documents:
First, the registration document to establish an executive office of a foreign investor includes the following contents: name and address of the representative office in Vietnam (if any) of the foreign investor in the BCC contract; name, address of the executive office; content, duration, scope of operation of the executive office; full name, place of residence, ID card number, Citizen Identification card or Passport of the head of the executive office.
Second, the decision of the foreign investor in the contract BCC contract on the establishment of the executive office.
Third, a copy of the decision to appoint the head of the executive office;
Fourth, a copy of the BCC contract.
Procedures for establishing an executive office of a foreign investor in a BCC contract
⭐️Step 1: The investor prepares a set of documents according to regulations.
⭐️Step 2: The investor submits the application to the investment registration authority. The application will be received, a receipt will be returned and the investor will be scheduled to receive the results.
⭐️Step 3: Processing the application and returning the results
The investment registration authority receives and processes the application. The specialized department receives and reviews the validity of the application, and submits it to the leader of the investment registration authority for approval of the application processing results.
Within 15 days from the date of receipt of the application as prescribed, the investment registration authority will return the result of the Certificate of registration of the operation of the executive office in case the application is valid or issue a Notice that the application is not eligible for processing in case the application is invalid.
Notes on establishing an executive office of a foreign investor in a BCC contract
First, the registration of the establishment of a foreign investor’s executive office in a BCC contract is mandatory. According to the provisions of Decree 122/2021/ND-CP of the Government dated December 28, 2021, stipulating administrative sanctions in the field of planning and investment, a fine of VND 50,000,000 to VND 70,000,000 will be imposed for the act of establishing a foreign investor’s executive office in a BCC contract but not registering with the investment registration authority where the executive office is located.
Along with that, the investor will also be subject to a remedial measure of being forced to carry out the procedure of registering the establishment of a foreign investor’s executive office in a BCC contract for this violation.
Second, after being granted a license to establish a foreign investor’s executive office in a BCC contract, the investor also needs to pay attention to some basic contents on the operating conditions of this type. That is, the executive office of the foreign investor in the BCC contract has a seal, is allowed to open a bank account, recruit employees and conduct business activities within the scope of rights and obligations stipulated in the BCC contract and the Certificate of registration for establishment of the executive office.
Establishing executive office of foreign investor in BCC contract services
With a team of experienced lawyers and legal experts, Siglaw provides consulting services, supports in drafting documents and implementing procedures for establishing a foreign investor’s executive office in a BCC contract. Siglaw will:
- Provide guidance on preparing documents and information necessary to prepare documents for establishing a foreign investor’s executive office.
- Answer and advise on legal regulations related to establishing a foreign investor’s executive office in a BCC contract.
- Guide customers to sign and complete documents
- Advise customers on procedures for applying for a work permit, temporary residence card, etc.
- Provide regular legal advice on the operation of a foreign investor’s executive office in a BCC contract.
- Advise on conditions, processes, procedures, and implementation time in the most optimal way for each customer’s specific case.
With the desire to bring the most efficiency to customers, Siglaw law firm will always strive to carry out the responsibility that customers place on our shoulders with the most dedication, care and enthusiasm. Because, for Siglaw, bringing values and satisfaction to customers is our happiness.
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