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GAS BUSINESS INVESTMENT CONSULTING (LPG)
Gas retailing in the Vietnamese market has been growing strongly, attracting the attention of foreign investors, actively participating through many forms of investment such as indirect investment, capital contribution in gas companies. gas wholesaler and retailer. Facing the strategic direction of national energy development and following the development trend of the world energy industry, the gas industry is synchronously implementing many solutions to improve competitiveness, promote scale, sustainable development, and strongly attract investment from FDI. The following article of Siglaw will provide timely and reasonable advice for investors who want to do gas business in Vietnam. We invite you to read along.
Conditions for investors to do gas business in Vietnam
First, gas investor is a trader established in accordance with the law of Vietnam, and meets the following conditions:
- Having a gas tank or a contract to rent a gas tank or having an LPG bottle or an LPG bottle rental contract.
- Gas tanks that meet safety regulations include:
- Gas tanks must be fully installed with safety and test equipment as prescribed.
- The tank must be installed with an emergency shut-off valve.
- Tanks must be placed outdoors, outside houses, outside closed constructions. Do not place tanks on roofs, balconies, basements and under structures.
- Fixed tanks must not be placed on top of each other. Horizontal cylindrical tanks should not be aligned along the longitudinal axis, facing housing or service facilities.
- Submersible tanks must not be placed under other flammable liquid storage areas
- LPG bottles that meet the conditions for circulation on the market include:
- Before being circulated on the market, LPG bottles must have technical inspection of occupational safety and certification of conformity;
- Must fully meet the safety regulations in the National Technical Regulations and carry out periodic inspection as prescribed;
- There are full records, origin of the manufacturer.
- Meeting the conditions on fire prevention and fighting as prescribed by law;
Procedures for gas business investment in Vietnam
Option 1: Domestic investors and companies contribute capital to establish economic organizations in the field of gas distribution in Vietnam, with the capital contribution of foreign investors accounting for 49% of the company’s charter capital.
Step 1: Carry out the procedures to apply for an Investment Registration Certificate at the Department of Planning and Investment of the provinces/cities
- The investor makes 01 set of documents including the documents specified in Clause 1, Article 33 of the Law on Investment 2020, including:
- A written request for the implementation of a gas business investment project (The form of this document is specified in Circular 03/2020/TT-BKHDT);
- Documents proving the legal status of gas business investors:
- For gas business investors who are individuals: Passport/ID card/Citizen identity card;
- For gas investors who are organizations: Decision on establishment/business registration/equivalent papers;
- Papers proving the financial capacity of the gas business investor: One of the following types:
- Financial statements for the last 2 years;
- Commitment to financial support of the parent company;
- Commitment to financial support of financial institutions;
- Guarantee on the financial capacity of the investor;
- Other documents proving financial capacity.
- Proposal for gas business investment project (According to the prescribed form)
- Papers on land use rights or other documents determining the right to use the site for the implementation of a gas business investment project;
- Papers with explanation about technology (For technology-related projects)
- BCC contract (when investing in the form of BCC contract)
- Other documents (if any)
- Regulations on the time limit for processing the application for the Investment Registration Certificate at the Department of Planning and Investment: 15 days. If disagreeing, the Department must reply in writing and clearly state the reasons.
Step 2: After obtaining the Investment Registration Certificate, the Investor carries out the procedures for issuance of the Certificate of Business Registration at the Business Registration Office – Department of Planning and Investment of the province/city where the head office is located.
- The investor prepares a set of documents including:
- Written request for enterprise registration with gas business lines (specified form)
- Charter of gas trading company;
- For a limited liability company, the investor shall submit a list of members; For a Joint Stock Company, the Investor shall submit a list of founding shareholders and shareholders being foreign investors (specified form);
- Documents on legal status of the representative:
- Investor is an individual: Passport/citizen identity card/national identity card;
- Investor is an organization: establishment decision/certificate of business registration/equivalent document and written authorization to represent capital contribution in Vietnam
- Passport/citizen identification/ID card that person’s people;
- Investment registration certificate has been issued (certified copy);
- Regulations on the time limit for processing the application for the Certificate of Business Registration at the Business Registration Office: 03 – 07 days. If disagreeing, the Department must reply in writing and clearly state the reasons.
Step 3: The investor submits an application for a Certificate of eligibility for gas trading business, including:
- Application for issuance of Certificate of eligibility for gas trading
- Copy of Business Registration Certificate.
- Copy of Certificate of technical inspection results of tank labor safety.
- Documents evidencing meeting the conditions on fire prevention and fighting.
- For gas traders who only have LPG bottles or rent LPG bottles, in addition to the above papers, the following papers must be added:
- A copy of the valid certificate of LPG bottle inspection;
- A copy of the certificate of conformity for LPG bottles.
- Place of application: Department of Industry and Trade of the province/city where the enterprise’s head office is located
- The actual application: Submit the application in person or by post or electronically to the Department of Industry and Trade.
- Processing time: 15 working days
2.2. Option 2: Foreign investors invest in the form of capital contribution, purchase of shares or capital contribution to a Vietnamese economic organization with the proportion of capital contribution accounting for 49% of the total charter capital of the company.
In this case, the investor is not required to carry out the procedures for issuance of an Investment Registration Certificate.
However, because the gas business field is a conditional business investment industry that applies to foreign investors, investors must register for capital contribution, purchase shares, and contribute capital to the organization. economic organization at the Department of Planning and Investment where the economic organization is headquartered.
Thus, the Investor needs to take three steps:
- Step 1: Carry out the procedures for registering to buy shares and buy contributed capital at the Department of Planning and Investment where the Company is located.
- Step 2: Carry out procedures for changing shareholders/members at the business registration office;
- Step 3: Carry out procedures to apply for a Certificate of eligibility for gas trading at the Department of Industry and Trade.
When contacting us to use the gas business investment consulting service, customers will receive the following incentives:
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- Lawyer Siglaw directly advises and answers all questions related to FDI investment in general and the establishment of FDI enterprises in particular, specifically:
- Consulting on capital contribution ratio of foreign investors;
- Consulting on the right type of company;
- Consulting on legal issues related to the establishment of the Company: head office location, business lines, opening capital accounts, direct investment accounts; capital contribution period;
- Advising on conditions, guiding investors to prepare necessary documents to carry out procedures for setting up a company in Ho Chi Minh City;
- Consulting, drafting company establishment documents;
- Representing investors to work with competent state agencies related to the establishment of the Company in Ho Chi Minh City. Ho Chi Minh.
- Committed to the most reasonable and economical costs in the market. No costs incurred.
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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