Types of licenses required for Taiwanese-invested companies

Vietnam has a stable economy, a large workforce, a golden population structure, and abundant natural resources. For the past 20 years, Vietnam has attracted many Taiwanese entrepreneurs in traditional industries such as textiles, footwear, and furniture to invest. The proportion of Taiwanese entrepreneurs investing in Vietnam’s service sector has also increased in recent years, with a wider range of investment sectors in Vietnam.

Whether it’s traditional manufacturing, large-scale processing and manufacturing plants, or the electronics industry, Taiwanese companies, on the one hand, take advantage of Vietnam’s natural resources and labor force, and on the other hand, introduce advanced technology and bring modern industrial production to Vietnam to achieve mutual benefits for both sides. So, what kinds of licenses do Taiwanese-invested companies need to do business in Vietnam? Let’s explore this through the following article by Siglaw Firm!

Required licenses for Taiwanese-invested companies

Investment Registration Certificate

Investment Registration Certificate (also known as Investment Certificate or Investment License) is a document, either in paper or electronic form, recording the investor’s registration information about the investment project. This is a license issued by a competent authority to a foreign investor who meets the conditions to carry out investment projects and invest capital in production and business activities in Vietnam.

Currently, two cases require an Investment Registration Certificate: Foreign direct investment projects or investment projects of economic organizations as prescribed by Vietnamese investment law. Obtaining an Investment Registration Certificate is mandatory for foreign-invested business activities. It is a necessary condition for foreign investors to establish foreign-owned companies or carry out an investment project in Vietnam legally, ensuring that the State can effectively manage activities as well as foreign investment capital in Vietnam.

The validity period of an Investment Registration Certificate is equivalent to the operational period of the investment project, which is assessed and determined based on the project’s objectives, scale, location, and operational requirements. Accordingly, the maximum validity period of an Investment Registration Certificate is stipulated as follows:

• Stay under 70 years for investment projects in economic zones.
• Stay under 50 years for investment projects outside economic zones.
• Stay under 70 years for investment projects implemented in areas with difficult socio-economic conditions, areas with extremely difficult socio-economic conditions, or large-scale investment projects with slow capital recovery.

Business registration certificate for Taiwanese-invested companies

A business registration certificate, also known as a business establishment license, is a paper or electronic document issued by the business registration authority to individuals establishing a business household, organization, or business operating a business, recording information about business registration. 

This license protects the ownership of the name, and legal documents of the enterprise according to the provisions of the law, helping state agencies easily monitor and manage business activities, and participate in insurance and other processes of enterprises. In terms of procedures, the registration object for granting certificates is subject to the assessment and verification of conditions and valid dossiers by the Department of Planning and Investment according to the regulations of the state agency, if all conditions are met and completed, a business license will be granted.

A Business Registration Certificate includes the following 5 contents:

• Business registration number;
• Head office address;
• Company name;
• Charter capital for companies, investment capital for private enterprises;
• Personal information of the legal representative/contributing members/general partners/business owner/individual owner; information on the name, business registration number, and head office address of the owner who is an organization.

Conditional business license for Taiwanese-invested companies operating in conditional business lines as prescribed by Vietnamese law

Conditional business lines are understood as business lines that require certain conditions to be met before engaging in such businesses or providing services or goods to the market. 

A conditional business license represents the approval and permission of the competent authority when an enterprise meets the conditions for being granted a license to operate in a conditional business line (statutory capital, production facilities, business premises, origin, security, and order,…) and has completed the licensing procedures. Thus, only after an enterprise is granted a sub-license by a state agency can it be entitled to engage in production and business activities in the registered business line with the competent authority.

Conditional business licenses also aim to restrict business activities in certain industries, fields, and sectors. In areas where businesses require a license from a specialized government agency, after obtaining a Business Registration Certificate, enterprises must apply for a license to operate in that specific business line before commencing operations. Government agencies regulate various types of licenses in sectors such as Industry and Trade, Transport, Agriculture, and Information and Communications.

Above are the types of licenses required for Taiwanese-invested companies. If you have any further questions regarding the types of licenses required for Taiwanese-invested companies, please contact Siglaw Law Firm for detailed answers. 

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

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

Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.

Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.

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

Facebook: https://www.facebook.com/hangluatSiglaw