Valuation business for foreign investors

According to Clause 15, Article 4 of the 2012 Law on Prices, valuation is defined as “the act of an agency or organization with the function of valuation to determine the monetary value of assets according to the provisions of the Civil Law in accordance with the market price at a certain location and time, serving a certain purpose according to valuation standards“. So the purpose of valuation activities is to determine the value of assets to serve activities such as ownership transfer, credit activities, investment development, business activities or legal activities, etc. The purpose of valuation reflects the need to use assets for a certain job. Vietnam, with a market economy that is integrating and developing, has an increasing demand for valuation services. Vietnamese law has set out specific regulations for foreign investors doing business in valuation services.

Conditions for foreign investors to conduct business in valuation services

According to Vietnam’s WTO Accession Commitment Schedule and Free Trade Agreements (FTAs), valuation services are not specified in the Commitment Schedule, so conditions will be based on Vietnamese law according to the criteria specifically as follows:

Ownership ratio:

• In case the founding shareholder is an organization: maximum 35% of total charter capital of the joint stock company (JSC);
• In case a member is an organization: maximum 35% of charter capital of a limited liability company (LLC) with two or more members;
• In case there are many organizations contributing capital, the total capital contributed by the organizations is maximum 35% of the charter capital of the JSC; LLC with two or more members.

Investment form: joint venture in the form of a JSC or LLC.

Vietnamese partners participating in investment: Vietnamese valuation enterprises.

Foreign investors: legal valuation business in the host country.

Procedures for foreign investors to conduct business in valuation services

Step 1: Apply for a Investment Registration Certificate (IRC) for valuation Services

Step 2: Apply for a Enterprise Registration Certificate (ERC) for valuation Services

Step 3: Publish the ERC content on the National Business Registration Portal

Step 4: The enterprise engraves a seal and publishes the seal sample

Step 5: Apply for a Certificate of Eligibility for Valuation Services Business

Step 1: Apply for an IRC for valuation services

1. Document requesting to implement an investment project for valuation services;
2. Copy of ID card or passport for individual investors and documents confirming legal status for institutional investors;
3. Detailed document proposing a valuation services investment project;
4. Copy of documents on financial matters of foreign investors;
5. Documents on land use needs, location lease agreement or location use rights to implement the investment project.

Competent Authority: Department of Planning and Investment or Management Board of industrial parks, export processing zones, economic zones and high-tech zones if the investment project is in those zones.

Estimated Time: For investment projects not subject to investment policy decisions, the deadline for returning dossiers is 15 – 20 working days from the date of receipt of complete dossiers.

Step 2: Apply for a ERC for valuation Services

1. Application for registration of valuation service business;
2. Company charter with valuation service industry code;
3. List of company members/List of founding shareholders and shareholders who are foreign investors;
4. Copies of the following documents:

– ID card, passport of individual members;

– ID card, passport of authorized representative;

– Copy of ERC for foreign organization members.

1. IRC according to regulations;
2. Authorization letter if the enterprise does not directly submit the application.

Competent Authority: Business Registration Office under the Department of Planning and Investment.

Estimated Time: 03 – 06 working days from the date of receiving complete and valid documents.

Step 3: Publish the ERC content on the National Business Registration Portal

Information on the ERC must be made public on the National Business Registration Portal within 30 days from the date of issuance of the ERC. According to Clause 1, Article 26 of Decree 50/2016/ND-CP, in case an enterprise does not publish or fails to publish the business registration content on the National Business Registration Portal within the prescribed time limit, the enterprise will be fined from VND 1,000,000 to VND 2,000,000.

Step 4: The enterprise engraves a seal and publishes the seal sample

Enterprises can authorize or carve their own seals and notify the Department of Planning and Investment of their company’s seal samples. Enterprises can decide on the form, quantity and content of the seals, but they must show the name and enterprise code. After receiving the notification of the enterprise’s seal samples, the Business Registration Office will issue a Receipt to the enterprise, post the enterprise’s notification on the National Business Registration Portal and issue a notice of posting information on the enterprise’s seal samples to the enterprise.

Step 5: Apply for a Certificate of Eligibility for Valuation Service Business

Before officially starting operations, foreign investors must apply for a Certificate of Eligibility for Valuation Services Business. The issuance ensures that foreign investors fully meet the following conditions according to Article 39 of the 2012 Law on Prices:

• Having Business Registration Certificate, ERC or IRC as prescribed by law;
• The legal representatives, Directors or general Directors of the enterprise must be price appraiser registering practice in such enterprises;
• There must be at least 03 appraisers on prices registering practice in such enterprises, of which at least 02 must be capital contributors for a limited liability company with 2 or more members and at least 02 must be founding shareholders for a joint stock company;
• The capital contribution of an organization member must be a maximum of 35% of the company’s charter capital. The representative of an organization member must be a registered price appraiser at the enterprise.

Application for Certificate of Eligibility for Valuation Service Business

1. Application for Certificate of Eligibility for Valuation Service Business;
2. Certified copy of Business Registration Certificate, ERC;
3. Certificate of valuation practice registration of appraisers registered to practice at the enterprise confirmed by the enterprise; Certificate of professional knowledge training on valuation for practicing appraisers (if any);
4. Copy of Labor Contract or Appendix to Labor Contract (if any) of price appraisers practicing at the enterprise;
5. Documents proving the capital contribution of members who are organizations for limited liability companies with two or more members and joint stock companies;
6. Receipt of payment of fees as prescribed;
7. Certified copy of the document appointing the position of the legal representative of the enterprise, the authorization document in the field of valuation (if any).

Competent Authority: Ministry of Finance

Estimated Time: Within 15 working days from the date of receiving complete and valid application, the Ministry of Finance shall issue a Certificate of Eligibility for Valuation Service Business.

✅ Service	Foreign invested valuation service business
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✅ Experience	>10 years of experience in investment consulting in Vietnam
✅ Contact	⭕️ Hotline 0961 366 238

 

Head office in Hanoi: No 44/A32-NV13, Gelemxico A, Le Trong Tan Street, An Khanh Ward, Hoai Duc District, Hanoi City.

Branch in the South: A9.05 Block A, Sky Center Building, No. 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City.

Branch in the Da Nang: 177 Trung Nu Vuong, Hai Chau District, Da Nang City

Email: Siglaw.contact@gmail.com

Hotline: 0961 366 238

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Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
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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

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