Valuation service business for foreign investors

Valuation service business for foreign investors

According to the provisions of Clause 15, Article 4 of the 2012 Price Law, price appraisal is defined as “The determination of the monetary value of assets by agencies and organizations with the function of price appraisal by the provisions of the  Civil Code appropriate to the market price at a certain place and time, serving a certain purpose according to valuation standards”. So the purpose of valuation activities is to determine asset value to serve activities such as transfer of ownership, credit activities, investment development, business activities or legal activities, … Thus, the purpose of valuation reflects the need to use the asset for a certain job. With Vietnam’s integrating and developing market economy, the demand for valuation services is increasing. Vietnamese law has set specific regulations for foreign investors doing business in valuation services.

Conditions for foreign investors to conduct business in price appraisal services

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

Ownership ratio:

• An organization is the founding shareholder: a maximum of 35% of the charter capital of the joint stock companies;
• An organization is a member: a maximum of 35% of the charter capital of a limited liability company with two or more members;
• In case there are many organizations contributing capital, the maximum total capital contribution of the organizations is equal to 35% of the charter capital of the joint stock company; LLC with two or more members.

Investment form: joint venture cooperation in the form of a joint stock company or limited liability company;

Vietnamese partners participating in investment: Vietnamese valuation enterprises;

Foreign investors: legal appraisal business in the host country.

Procedures for Foreign Investors Providing Price Appraisal Services

Step 1: Apply for a Certificate of investment registration for valuation services

Step 2: Apply for a Certificate of Business Registration for Valuation Services

Step 3: Publish business registration information on the National Information Portal

Step 4: The enterprise engraves the seal and announces the seal sample

Step 5: Apply for a Certificate of eligibility to conduct business in price appraisal services

Step 1: Apply for a Certificate of investment registration for valuation services

1. A document requesting implementation of the investment project for valuation services business
2. Copy of ID card or passport for individual investors and documents certifying legal status for institutional investors;
3. Documents proposing investment projects for valuation services include detailed content;
4. Copies of documents on the foreign investor’s financial matters;
5. Documents on land use demand, location rental agreement or right to use location to carry out investment projects.

Applicant agencies: 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.

Time: For investment projects that are not subject to investment policy decision, the time limit for returning documents is 15 – 20 working days from the date of receiving complete documents.

Step 2: Apply for a Certificate of Business Registration for Valuation Services

1. Application for registration of price appraisal service business;
2. The company’s charter records the 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 or passport of individual members;

– ID card or passport of the authorized representative;

– Copy of Business Registration Certificate for members of foreign organizations.

• Investment registration certificate for foreign investors;
• Authorization document if the business does not directly apply.

Application submitting agency: Business Registration Office under the Department of Planning and Investment

Time: 03 – 06 working days from the date of receiving all valid documents

Step 3: Publish business registration information on the National Information Portal

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

Step 4: The enterprise engraves the seal and announces the seal sample

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

Step 5: Apply for a Certificate of eligibility to conduct business in price appraisal services

Before officially going into operation, foreign investors must apply for a certificate of eligibility to conduct business in valuation services. The issuance of guarantees to foreign investors must meet all of the following conditions according to Article 39 of the 2012 Price Law:

• Have a Business Registration Certificate, Enterprise Registration Certificate or Investment Certificate as prescribed by law;
• The legal representative, Director or General Director of the enterprise must be a price appraiser registered to practice at the enterprise;
• There must be at least 03 price appraisers registered to practice at the enterprise, of which there must be at least 02 members contributing capital to the limited liability company with 2 or more members and at least 02 founding shareholders must be with the company share;
• The capital contribution of organizational members is a maximum of 35% of the company’s charter capital. The representative of the member who is an organization must be a price appraiser registered to practice at the enterprise.

Application for Certificate of Eligibility to conduct business in price appraisal services

1. Application for a certificate of eligibility to conduct business in price appraisal services;
2. Certified copy of Business Registration Certificate, Enterprise Registration Certificate;
3. The registration certificate to practice valuation of appraisers registered to practice at the enterprise is confirmed by the enterprise; a certificate of professional knowledge training on valuation for practicing appraisers (if any);
4. Copy of the Labor Contract or Labor Contract Appendix (if any) of the price appraisers practicing at the enterprise;
5. Documents proving the capital contribution level of organizational members for limited liability companies with two or more members and joint stock companies;
6. Receipt of fee payment according to regulations;
7. Certified copy of the position appointment document for the legal representative of the enterprise, authorization document in the field of price appraisal (if any).

Applicant agency: Ministry of Finance

Time: Within 15 working days from the date of receiving valid documents completely, the Ministry of Finance shall issue a certificate of eligibility for business valuation services.

Siglaw is always ready to give advice and support customers with necessary information while carrying out procedures to change the investor’s address. Please contact Siglaw law firm for specific advice

Siglaw Law Firm

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