Types of license required for foreign-owned travel agencies/companies·        

Foreign-owned travel agencies/companies generally have to comply with the regulations and laws of the countries in which they operate, including obtaining the necessary permits and complying with safety and environmental standards. In this article, we invite you to join Siglaw to learn in detail the types of licenses required for foreign-owned travel companies in Vietnam:

What is a foreign capital travel agency?

A foreign-owned travel company is an enterprise established under the Enterprise Law, operating in the field of international travel tours which may include organizing tours, providing accommodation services, transportation, tour guiding, and many other activities related to the tourism industry, and investment capital from foreign countries.

Some reputable foreign-invested travel companies in Vietnam include: European travel company Euro Travel, Fiditou Travel Service Company, Exotissimo Vietnam Travel Joint Stock Company,….

Types of licenses required for foreign-owned travel companies

Investment Registration Certificate (IRC)

An Investment Registration Certificate, or Investment Certificate or Investment License, is an important document in the process of foreign investors investing in Vietnam. This is a license issued by Vietnam’s investment authority, confirming that a company or individual has registered to invest in a particular project and has been approved to carry out investment activities related to that project.

The investment registration certificate usually contains information about the investor’s name and address, description of the investment project, project size, investment amount, implementation time, and other special conditions and regulations related to the project.

To qualify for this type of license, investors must meet the following criteria:

• Conformity with the planning in the country of investment: Investment projects must conform to national, regional, provincial, urban planning and special administrative-economic units. This ensures that the project does not encroach on the development plans and superior planning.
• Not in industries prohibited from investment: Investment projects must not belong to industries prohibited from business investment. Industries prohibited from business investment are often listed and clearly defined in the 2020 Investment Law, including activities such as trading in narcotics, regulated chemicals, tissues, corpses, human body parts, and many others. Thus, tourism does not belong to prohibited industries, so investors can rest assured to establish a travel company.
• Have a project implementation location: The investor needs to have a specific location to implement the investment project. This includes determining where the project will be implemented and the conditions associated with the site.
• Ensuring market access conditions
• Meet investment requirements: Foreign investors need to meet the requirements of the total investment amount, land area, and number of employees employed (if any). This depends on the size and type of specific investment project.

If investors determine that they meet all the conditions prescribed by law to establish a foreign-invested tourism company in Vietnam, investors will need to prepare an application for an IRC Investment Registration Certificate:

After the foreign investor has fully submitted relevant dossiers, the Department of Planning and Investment will consider and handle the procedures for issuance of investment certificates. The time for processing and issuing this certificate is clearly stipulated to be 15 days from the time the agency receives a complete dossier from the investor, in accordance with the provisions of law.

However, if there are any problems or reasons that make the issuance of the Investment Certificate impossible within this deadline, the competent authority will have to notify the investor in writing. This notification will provide detailed information on why the issuance of the Investment Certificate could not be completed on time.

In this situation, the notification will explain any issues related to the late deadline and how to resolve it. Investors will be given specific instructions on the next steps and the expected time for the issuance of the Investment Certificate. It is important that this process is carried out in a transparent and law-abiding manner to ensure fairness and transparency in the handling of foreign investment applicants.

Enterprise Registration Certificate (ERC)

The Enterprise Registration Certificate is a legal document proving the recognition of a state agency for the existence and operation of an enterprise in Vietnam. To obtain ERC, the company needs to submit documents and carry out business registration procedures at the authorities, usually the Business Registration Office of the province or city. The contents recorded on the ERC include:

• An enterprise identification number is also a tax code that will follow the enterprise from incorporation to termination of operation
• Business name: Vietnamese name, foreign name, abbreviated name.
• Business address, phone number, email, website, fax.
• Registered Charter Capital
• Number of shares (For Joint Stock Company)
• Capital contributors (For limited liability companies with 2 or more members)
• Company owner (For 1-member limited liability company)
• Information about the legal representative of the Company.

To apply for this type of license, enterprises must make a new set of business establishment documents.

International Travel Business License

An international travel business license is an important license in the tourism industry, and only upon receiving a license from the Vietnam National Administration of Tourism, can an enterprise be legally allowed to conduct international travel business.

This license is only granted to businesses that meet the following conditions:

• Establishment in accordance with the provisions of law: Enterprises must be established and operate in accordance with current laws. This includes business registration and compliance with regulations related to the business.
• Tour Operating Industry: Enterprises need to have business registration in the industry “Tour Operator: International Travel Business.” This means that they must be allowed to operate in the field of international tourism in order to be granted an international travel business license.
• Have registered Industry Code 7912: Enterprises must have industry code 7912 in the Enterprise Registration Certificate or industry registration data on the National Business Registration Portal. This industry code relates to “Travel Operations: Domestic Travel Business, International Travel.” If enterprises do not have industry code 7912 in their Enterprise Registration Certificate, they need to add this industry to their registration before they can carry out procedures for issuance of an international travel business license.

For free and in-depth consultation on establishing a foreign capital travel company in Vietnam, please contact Siglaw Law Firm:

Head office in Hanoi: 12A floor, Sao Mai Building, No. 19 Le Van Luong Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi City.

Email: vphn@siglaw.com.vn

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

Email: vphcm@siglaw.com.vn

Hotline: 0961 366 238

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