Consulting on procedures for establishing a foreign-invested construction company: Applying for investment certificate, business registration certificate and construction permit.
Procedures for establishing a foreign invested construction company
For the construction sector with foreign investment, individual capital contribution will be limited, so to operate in this industry, foreign enterprises can only be established in the form of capital contribution and investment organizations.
To establish a foreign invested construction company in Vietnam (FDI company in Vietnam), investors need to carry out 2 legal procedures:
- Establishment of foreign capital construction company;
- Apply for a building permit (sub-license).
1. Procedures for registering to establish a foreign-invested construction company
Depending on each case, foreign-invested enterprises can choose to establish in one of two ways:
- Method 1: Establish a construction company with Vietnamese capital and then transfer it;
- Method 2: Establish a construction company directly with foreign capital (granted an investment registration certificate).
In case a foreign-invested construction company intends to carry out works and projects related to the state or use its legal status in Vietnam for the purpose of investing abroad, it must establish a business in two ways: applying for an investment license and a business registration certificate. Specifically:
1.1 Procedures for applying for an investment registration certificate
Based on the Investment Law 2020, there are 2 cases:
- Granting investment registration certificates for projects subject to investment policy approval;
- Granting investment registration certificates for projects not subject to investment policy approval.
Within the scope of this article, fdiinvietnam.com provides you with the procedures for applying for an investment license for investment projects that are not subject to investment policy approval. Specifically:
➤ Application for investment registration certificate for foreign investors
Application for investment certificate includes:
- Investment project proposal;
- Document requesting to implement investment project;
- Copy of business registration certificate of foreign organization;
- Copy of ID card/passport of legal representative of foreign organization;
- Financial statements of the last 2 years audited by a foreign organization (consularized, valid for 90 days);
- Documents proving that the foreign investor’s bank account balance is equal to or greater than the investment amount (if the foreign bank account must be consularized, translated and notarized into Vietnamese).
>> FREE DOWNLOAD: Application for investment registration certificate.
Note:
- All documents, texts, and reports in the dossier must be translated into Vietnamese (with a foreign language version attached), consularized and certified;
- Foreign-invested construction companies must fully register industry codes related to the company’s business activities to avoid wasting time adding industry codes when applying for a construction permit (sub-license).
>> See now: Construction industry code (most detailed).
➤ Submit application to competent authority
Foreign investors submit applications for investment licenses to the Investment Registration Office – Department of Planning and Investment where the foreign-invested construction company has its headquarters.
➤ Waiting for investment registration certificate
Within 15 working days, the investment registration agency will issue an investment license if the application is valid, or notify the applicant of additional instructions or corrections if the application is invalid.
1.2 Procedures for applying for a business registration certificate
➤ Application for business registration certificate
Refer and download for free the construction company establishment profile according to each type of enterprise:
>> Procedures for establishing a construction LLC;
>> Procedures for establishing a construction joint stock company.
➤ Submit application to the Department of Planning and Investment where the foreign enterprise has its headquarters.
Foreign-invested construction companies can submit applications for business registration certificates to the Department of Planning and Investment in one of three ways:
- Submit directly to the Department of Planning and Investment where the company’s headquarters is located;
- Submit by post via postal service (VNPost);
- Submit online via the National Business Registration Portal.
>> See now: How to register for a business license online (detailed instructions).
➤ Waiting for business registration certificate
Within 3-5 working days, the Department of Planning and Investment will issue a business registration certificate if the application is valid or a document requesting amendments or supplements if the application is invalid.
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In case a foreign-invested enterprise chooses to establish a construction company with Vietnamese capital and then transfer it (method 1), it is necessary to perform the following 2 steps:
➤ Step 1: Register to establish a construction company with 100% Vietnamese capital
>> Reference: Company registration – Procedures, documents, conditions.
➤ Step 2: Carry out procedures to transfer capital to foreign investors
>> Reference: Procedures for transferring capital to foreigners.
2. Procedures for applying for a construction permit (sub-permit)
Construction permits include: new construction permits, construction permits for repair and renovation, and construction permits for relocation of buildings.
Classification of construction permits by type of construction and project includes:
- License for individual housing;
- Linear works;
- Non-linear construction;
- Religious and belief works;
- Monumental works, monumental paintings;
- Works of diplomatic agencies and international organizations.
Depending on the type of construction and the purpose of the permit application, the construction permit application will be different.
2.1 Construction permit application documents for each type of construction
➤ Application for new construction permit
Basic profile components:
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For additional single family homes:
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For additional linear/non-linear works:
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For additional religious and belief works:
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For monumental works, additional murals:
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| >> FREE DOWNLOAD: Application for construction permit. |
➤ Application for construction permit for repair and renovation
The application for a construction permit to repair or renovate a project or work includes:
- Documents proving land use rights;
- Application for permit for repair and renovation;
- Other relevant documents as prescribed for each type of construction;
- Current drawings of the construction part expected to be repaired or renovated have been approved;
- Document of approval on the necessity of construction and scale of the project from the state management agency of culture (for historical, cultural relics and scenic spots).
➤ Application for construction permit when relocating a construction
The application for a construction permit for a relocation project or construction includes:
- Application for construction relocation permit;
- Design drawings describing the current status of the relocated construction;
- Master plan drawing of the site to be relocated;
- Documents proving land use rights where the project will be relocated;
- Relocation plan to be implemented by qualified and capable organizations and individuals;
- Report on the results of the survey to assess the current quality of the project carried out by qualified and capable organizations and individuals.
2.2 Procedures for applying for a construction permit
After preparing the documents according to the instructions above, the owner of a foreign-invested enterprise submits them to the competent authority to request a construction permit for each type of project.
➤ Competent authority to grant construction permits to foreign-invested companies
Depending on the nature and type of construction, the competent authority responsible for appraisal and issuance of construction permits will be different.
- Provincial People’s Committee: Grants construction permits for projects requiring permits in the province, except for projects under the authority of district People’s Committee;
- The Provincial People’s Committee authorizes the Department of Construction, Management Board of industrial parks, export processing zones, hi-tech parks, economic zones, and District People’s Committees to: Issue construction permits for projects within the functions and scope of these agencies;
- District People’s Committee: Issues construction permits for level III and level IV works and individual houses in the management area.
➤ Time to return results
From the date of receiving valid documents, the competent authority will conduct a field survey and issue a construction permit if the project meets the requirements:
- From 15 working days, for the case of granting construction permits for individual houses;
- No more than 20 working days for the case of granting construction permits.
Conditions for establishing a foreign-invested construction company
The construction sector belongs to the group of conditional industries, so to operate in this industry, in addition to meeting the conditions for establishing a foreign-invested company, enterprises must also ensure the industry conditions. Specifically:
- Having its head office (organization) located in a country that is a member of the WTO along with Vietnam;
- Registered business lines are not prohibited and are included in the WTO commitments;
- Demonstrate experience and financial capacity to carry out the project;
- Meet the conditions for practice certificates and conditions for investment capital and legal capital as prescribed by law;
- Fulfill tax obligations in Vietnam such as: corporate income tax, import tax, value added tax, tax on profit transfer abroad…
>> See details: Conditions for establishing a construction company.
Full package service of establishing foreign-invested construction company at fdiinvietnam.com
Consider using the full package service of establishing a foreign-invested construction company at fdiinvietnam.com to help you save time and optimize costs.
1. Service of establishing foreign invested construction company
➤ Establish a company with Vietnamese capital and then transfer it
- Service fee from only: 15,000,000 – 23,000,000 VND;
- Completion time: 20 – 25 working days;
- Results received: business registration certificate, company seal.
➤ Establish a company with foreign capital directly from the beginning
- Service fee from only: 25,000,000 – 30,000,000 VND;
- Completion time: 40 – 45 working days;
- Results received: investment license, business registration certificate, company seal.
See details:
>> Service of establishing foreign invested companies;
>> Setting up a business in vietnam.
2. Construction permit application service
Currently, fdiinvietnam.com only provides construction permit application services for individual houses (new issuance, repair, renovation cases).
Information on services for applying for construction permits for individual houses at fdiinvietnam.com:
- Cost: From 1,500,000 VND;
- Completion time: 15 – 25 working days;
- Information customers need to provide:
- Construction design drawings for newly built houses;
- Drawings and photos of the current status of parts and items of the housing project that need to be renovated for repair and renovation projects;
- Documents proving land use rights or ownership of houses and other assets attached to land.
>> See details: Service of applying for construction permit for individual houses.
For support information and detailed quotation of foreign invested construction company establishment service, you can contact fdiinvietnam.com directly via hotline:
CALL NOW
Questions related to the establishment of foreign-invested construction companies
1. Procedures for establishing a foreign-invested construction company?
To open a foreign-invested construction company, you need to carry out 2 procedures:
- Establishment of foreign capital construction company;
- Apply for a building permit (sub-license).
>> See more: Procedures for establishing a foreign-invested construction company.
2. What documents are required when applying for an investment license for foreigners?
Foreign investors need to prepare documents to apply for an investment license including:
- Investment project proposal;
- Document requesting to implement investment project;
- Copy of business registration certificate of foreign organization;
- Copy of ID card/passport of legal representative of foreign organization;
- Financial statements of the last 2 years audited by a foreign organization (consularized, valid for 90 days);
- Documents proving that the foreign investor’s bank account balance is equal to or greater than the investment amount (if the foreign bank account must be consularized, translated and notarized into Vietnamese).
>> FREE DOWNLOAD: Application for investment registration certificate.
3. What types of building permits are there?
Construction permits include: new construction permits; repair and renovation permits; construction relocation permits.
4. Time limit for reviewing documents and issuing construction permits?
From the date of receiving valid documents, the competent authority to grant construction permits will conduct a field survey and grant a construction permit if the project or work meets the requirements:
- From 15 working days, for the case of granting construction permits for individual houses;
- No more than 20 working days for the case of granting construction permits.
5. Cost of establishing a foreign-invested construction company?
The total cost of establishing a foreign-invested construction company at fdiinvietnam.com is only from 16,500,000 VND, committed to being on time, with no additional costs.
>> See details: Service of establishing foreign-invested construction company.
Call us at 0978 578 866 (North) – 033 9962 333 (Central) – 0946 724 666 (South) for support.