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FOREIGN INVESTORS ESTABLISH ALCOHOL DISTRIBUTION COMPANIES
Vietnam is currently the largest alcohol consumption market in Southeast Asia, so this is a suitable environment for investors who want to carry out alcohol distribution activities. However, alcohol is a commodity subject to special control from the state, and alcohol-related businesses are conditional businesses. Therefore, foreign investors when establishing alcohol distribution companies in Vietnam should pay attention to some regulations so that the investment in alcohol distribution in Vietnam achieves high efficiency. For more information related to the establishment of alcohol distribution companies for foreign investors, please refer to the article of Siglaw Law Firm below:
Conditions for foreign investors to distribute alcohol in Vietnam
(Article 11 of Decree 105/2017/ND-CP; amended and supplemented in 2020)
– Being an enterprise established under the provisions of law.
– There is a written introduction or principal contract from a liquor producer, other liquor distributor, or overseas liquor supplier.
– Having a liquor distribution system in 02 provinces/cities or more (including the area where the enterprise is headquartered); In each province/city, there must be at least 01 wholesale liquor trader.
Thus, before conducting business activities, foreign investors need to carry out procedures for establishing foreign-invested enterprises, and at the same time prepare distribution systems and connect with entities supplying goods. These are conditions that ensure the management of state agencies over alcohol distribution activities.
Establishment of a liquor distribution company
The establishment of a liquor distribution company goes through 3 steps: investment registration, business registration, and obtaining a liquor distribution license.
Step 1: Apply for an Investment Registration Certificate at an investment management agency
A dossier of issuance of an Investment Registration Certificate includes:
– A written request for implementation of an investment project;
– Proposing investment projects to carry out alcohol distribution activities;
– Documents proving the financial capacity of the investor;
– Certified personal identification documents for individual investors; certified copy of enterprise registration for institutional investors;
– Site lease agreement or other document confirming that the investor has the right to use the business location;
After preparing all dossiers, investors will submit dossiers at the Department of Planning and Investment of provinces and centrally-run cities. Within 15 working days from the date of receipt of the dossier, the competent agency shall consider and issue the investment registration certificate; In case of refusal to grant a license, it must be made in writing and clearly state the reasons.
Step 2: Investors carry out procedures for applying for an Enterprise Registration Certificate
A dossier of applications for an enterprise registration certificate includes:
– An application for business registration;
– The company’s charter;
– List of members (For limited liability companies with two or more members); List of founding shareholders and shareholders being foreign investors (For joint-stock companies);
– A valid copy of one of the documents proving the legal status of the organization or the individual’s certification document
– The investment registration certificate has been issued.
After preparing a complete dossier, the investor will apply to the Department of Planning and Investment and also apply online at the National Business Registration Portal (dangkykinhdoanh.gov.vn).
Within 03 working days from the date of receipt of the completed dossier, the investor will be issued an enterprise registration certificate. In case the competent authority refuses to grant it, it must issue a written notice clearly stating the reason.
Step 3: Apply for a Liquor Distribution License
An application for a liquor distribution license includes:
– An application for a liquor distribution license
– Documentation of alcohol distribution systems
– A certified copy of the Enterprise Registration Certificate.
– Documents related to alcohol suppliers
The agency competent to receive dossiers and grant liquor distribution licenses is the Department of Domestic Market, Ministry of Industry and Trade. After preparing all dossiers, investors will submit dossiers to the office of the Ministry of Industry and Trade, contact information:
– Address 54 Hai Ba Trung, Hoan Kiem, Hanoi
– Hotline: (024) 22202108
– Email: bbt@moit.gov.vn
Within 15 working days from the date of receipt of a valid dossier, the Ministry of Industry and Trade shall consider, appraise, and grant a license, in case of refusal to grant a license, it must reply by clearly writing stating the reason. In case there is insufficient valid dossier, within 03 working days from the date of receipt of the dossier, the licensing agency must make an additional written request.
Complete post-establishment procedures
– Open a bank account: A foreign-invested company is required to open a direct investment capital account for investors to transfer capital into, then transfer to a current account to pay the company’s operating expenses.
– Labor registration: Carry out labor registration, report, and apply for work permits for foreign workers and social insurance for employees.
Difficulties when investing in alcohol distribution activities in Vietnam
– The establishment of a foreign-invested company requires compliance with the provisions of the Investment Law and the Enterprise Law. This process can be time-consuming and complicated. After registering a business, the company needs to apply for a liquor distribution license, requiring the provision of many documents. In particular, because alcohol business items are governed by many provisions of law, investors need to pay great attention not to violate requirements and regulations from state agencies.
For advice on procedures for establishing a comprehensive alcohol distribution company, please contact:
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
Facebook: https://www.facebook.com/hangluatSiglaw
