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Foreign investors contribute capital to investment consulting companies
With the development of the world and the boom of service industries, investment consulting services have been proven to be one of the most profitable industries. Therefore, foreign investors are eager to invest in investment consulting companies in Vietnam. So what are the procedures, documents, and requirements to achieve? Let’s find out the details in the article on foreign investors investing in investment consulting companies below.
WHAT IS INVESTING IN AN INVESTMENT CONSULTING COMPANY?
First, contributing capital to a company is when an individual or organization uses assets (money or other valuable assets) to contribute to the charter capital of the company.
So, contributing capital to an investment consulting company is when an individual or organization uses money or valuable assets to contribute to the charter capital of a company providing investment consulting services. Capital contribution can take place before registering to establish a business or contribute to the charter capital when the business has been established.
The result of contributing capital to an investment consulting company is that foreigners who contribute capital will not receive any money back, but they will receive benefits and values in the company equivalent to the capital they have contributed.
CONDITIONS FOR FOREIGN INVESTORS TO CONTRIBUTE CAPITAL TO INVESTMENT CONSULTING COMPANIES
Foreign investors contributing capital to investment consulting companies
The first thing to determine when foreign investors want to contribute capital to an investment consulting company is whether they are entitled to contribute capital to this type. According to Vietnamese law as well as Vietnam’s international treaties, Vietnamese law only prohibits the following individuals and organizations from contributing capital to investment consulting companies according to Article 17 of the 2020 Enterprise Law:
- State agencies (for example, the National Assembly, the President, the Government, etc.), or people’s armed forces units from 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 an investment consulting company (if any).
Foreign investment charter capital in investment consulting companies
According to Article 175 of Decree 155/2020/ND-CP, an organization providing securities investment consulting services in Vietnam must have a minimum charter capital of 10 billion VND. This is the total charter capital of both foreign investors and domestic investors in Vietnam.
In particular, the ratio that foreign investors can contribute capital to an investment consulting company is specified in Vietnam’s WTO Service Commitments. Foreign investors can contribute capital to establish an investment consulting company in Vietnam, but if the foreign investor’s capital ratio is over 51%, they must carry out capital contribution registration procedures.
The form of capital that foreign investors contribute to investment consulting companies is very diverse, providing flexibility for investors, thereby attracting them to invest more in these companies in Vietnam. Specifically, foreign investors can also contribute capital in three forms:
- Genuine gold, cash (US dollars, Vietnamese Dong, Euros, etc.);
- Land use rights and assets attached to land (houses, buildings, forests for production; construction works; …), intellectual property rights (copyrights, patents; rights related to copyright, etc.)
- Technology and technical secrets. For example: KFC’s chicken recipe.
TYPES OF INVESTMENT CONSULTING COMPANIES THAT CAN CONTRIBUTE CAPITAL
If foreign investors contribute capital to establish a company from the beginning, they will be allowed to contribute capital to limited liability companies and partnerships.
If investors contribute additional capital after the investment consulting company has been established, they are allowed to contribute capital by purchasing stocks in a joint stock company, contributing capital to a limited liability company and a partnership.
PROCEDURES AND DOCUMENTS FOR FOREIGN INVESTORS TO CONTRIBUTE CAPITAL TO AN INVESTMENT CONSULTING COMPANY
Foreign investors contributing capital to an investment consulting company must go through the following procedures and processes from preparing documents to submitting documents:
Foreign investors contribute capital to an operating investment consulting company
Step 1: Preparing complete, correct and valid documents to register for capital contribution to an investment consulting company:
- 01 original copy of the Registration for capital contribution, purchase of shares, and capital contribution including the following contents:
- Information of the company receiving the capital contribution (company name, enterprise code, …)
- Ratio of charter capital ownership of the foreign investor after contribution.
- 01 certified copy of ID card/CCCD/passport (if the foreign investor is an individual); or 01 certified copy of the Certificate of Establishment or other equivalent document (if the foreign investor is an organization).
- 01 Power of Attorney (if the investor does not submit the application himself but authorizes another person)
Step 2: Submitting the application for capital contribution to the investment consulting company
Submission location: Business Registration Office of the province/city where the investment consulting company is headquartered. For example:
- In Ho Chi Minh City: No. 90G Tran Quoc Toan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City.
- In Hanoi: 6th Floor, 27-storey building, Vo Chi Cong Inter-agency Area, No. 258 Vo Chi Cong Street, Xuan La Ward, Tay Ho District, Hanoi (Hanoi Regular Technology Transaction Center Building).
Step 3: Receiving results: Within a maximum of 15 days from the date of receiving valid documents, the investor will receive the results. If the capital contribution is not allowed, the Investment Registration Office will notify in writing. Once the results of capital contribution to the investment consulting company are available, investors can contribute capital by opening an investment account at a commercial bank in Vietnam.
Foreign investors contribute capital to establish an investment consulting 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 Business Registration Certificate of the foreign organization (if it is an organization);
- 01 certified copy of the ID card/CCCD/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 investment consulting company
INCENTIVES WHEN FOREIGN INVESTORS CONTRIBUTE CAPITAL TO INVESTMENT CONSULTING COMPANIES IN VIETNAM
Vietnam policies: no restrictions on capital contribution, streamlined procedures, diverse investment forms suitable for many needs of investors; whether individuals or foreign organizations, they can contribute capital to investment consulting companies in Vietnam, …
Siglaw Law Firm’s policies: Free 24/7 consultation on questions related to foreign investors’ capital contribution to investment consulting companies; Ensure 100% on-time work progress; Team of lawyers and consultants with more than 10 years of experience; … For direct and quick consultation, please contact:
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