Foreign investors contribute capital to the Investment Consultant Company

Foreign investors contribute capital to the Investment Consultant Company 

With the fast-paced world and the extent of service, investment consultant service is one of the most profitable faculties. Therefore, many foreign investors find ways to contribute to investment consultant companies in Vietnam. What are the procedures, requirements, and documents needed? Our writing will provide you with some information below. 

What is contributing capital to the Investment consultant company?

   Firstly, contributing capital to an investment consultant company is the way that an idividual, organization uses its assessment (money or any valuable property) to contribute to the charter capital of that company. Capital contribution can occur before registering to establish a business or adding to the capital charter once the business has been established. 

   The result of capital contribution to an investment consulting company is that foreigners who contribute capital will not receive any money back, they will receive benefits and values in the company compatible with the capital they have contributed. 

 The conditions for foreign investors to contribute capital to investment consultant companies

Foreign investment entities contribute capital to investment consulting companies

The first thing to determine when foreign investors want to contribute capital to an investment consultant company is whether they have the right to contribute to this type of company. According to Vietnamese’s legal framework 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 Enterprise Law 2020: 

• State Agencies (the President, the National Assembly, the Government, etc.) or people’s armament units use state assets to pour capital for businesses for personal gain for the organization they are working for. 
• Other subjects that the Law on Public Employees; Law on Cadres and Civil servants; law prevention and combat of corruption do not allow capital contribution to establish an investment consultant company (if any)

Charter capital for foreign investment in investment consultant companies.

   According to Article 175 of Decree 155/2020/ND-CP, an organization providing securities investment consulting services in Vietnam has to have a minimum company charter capital of VND 10 billion. This is the total charter capital of both foreign investors and Vietnamese domestic investors. 

   Meanwhile, the rate at which foreign investors can contribute capital to investment consulting companies is specified in Vietnam’schedule of service commitments in the WTO. 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 implement capital contribution registration procedures. 

   The forms of capital which foreign investors contribute to investment consulting companies are very diverse, bringing flexibility to investors, thereby attracting them to invest more in these companies in Vietnam. In particular, foreign investors can also contribute capital in three forms: 

• Genuine gold, cash (US dollars, Vietnamese dong, euros,…)
• 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. 

Forms of investment consultant companies that can contribute capital

If foreign investors contribute capital to establish company from the beginning, they will be allowed to contribute capital to limited liability companies and partnerships. 

If foreign investors contribute capital after investment consultant companies have been established, they can contribute capital by buying shares in joint stock companies, contributing capital to limited liability companies and partnerships. 

Process and documents for foreign investors to contribute capital to investment consulting companies

Contributing capital to an investment consultant company by a foreign investor must go through many procedures and process – starting from preparing documents to submitting them: 

Foreign investors contribute capital to an operating investment consultant company 

 Step 1: Prepare complete, correct and valid registration documents for capital contribution to the investment consulting company 

• 01 original copy of registration for capital contribution, share purchase, capital contribution including contents: 

• Information about economic organization that foreign investor is expected to contribute capital and purchase shares and contributed capital
• The percentage of ownership of the charter capital of the foreign investor after capital contribution and share purchase and contributed capital to the economic organization 
• A copy of identity card, citizen identity card or passport for individual investors; a copy of Establishment certificate or other equivalent documents confirming the legal status of the investor as organization
• Power of Attorney for individuals or organizations to submit documents

Step 2: Submit documents to register capital contribution to the investment consulting company 

Place of submission: Business registration office of the province or city where the investment consulting company is headquartered.

In Ho Chi Minh: 90G Tran Quoc Toan street, Vo Thi Sau  Ward, District 3, Ho Chi Minh City. 

In Ha Noi: 6th floor, 27-storey buliding, Vo Chi Cong complex, 258 Vo CHi Cong street, Xuan La Ward, Tay Ho District, Ha Noi 

Step 3:  Within 15 days after receipt of the documents, investors will receive result. If capital contribution is not allowed, the Investment Registration Office will notify you in writing. Once the result of capital contribution to the investment consulting company have been obtained, the investors can contribute capital by setting up 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 housing/ office rental contract to implement projects
• A copy of the ID card or passport (if the investor is an individual)
• 01 certified copy of the Business Registration Certificate of the foreign organization
• 01 certified copy of the foreign investor’s passport 
• 01 certified copy of ID card or passport of the investment presentative of a foreign investment organization in Vientnam
• An investment proposal that specifies: investor(s) in the project, investment objectives, investment scale, investment capital, method of capital raising, location, and duration of investment, labor demand, requests for investment incentives, assessment of socio-economic effects of the project
• A certificate of account balance of foreign consultant at least equal to the investment amount. If the account is in a foreign country, the documents must be authenticated, translate into Vietnamese and proven
• Copy of financial statement inspected by a foreign agency in the last two years (must be confirmed by the agency and valid within 90 days) 

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

Step 3: Establish an FDI investment consulting company 

Preferences when foreign investors contribute capital to investment consulting companies in Vietnam.

Policy from the state: no restrictions on capital contribution, streamlined procedures, diverse investment forms which meet the demands of foreign investors; whether individual or organiztion, they can contribute capital to an investment consulting company in Vietnam

Policy from Siglaw Law Firm: 24/7 free consultation on questions related to capital contribution to investment consulting companies by foreign investors; ensure work progress is completed 100% on time; a team of lawyers and consultants with more than 10 years of experience;…

For a comprehensive free consultation, please contact:

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

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

Headquarters: Floor 12A Sao Mai Building, 19 Le Van Luong Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi City.

Southern branch: No. 99 Cong Hoa, Ward 04, Tan Binh District, Ho Chi Minh City.

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

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