What is an investment certificate? What is an investment certificate for? Learn about the regulations and things to know when applying for an investment registration certificate in this article.
What is an investment registration certificate?
➤ Concept:
Investment registration certificate (also known as investment certificate or investment license) is a license issued by a competent authority to a foreign investor who is qualified to carry out investment projects in Vietnam.
The investment registration certificate can be a paper document or an electronic copy recording full information of the investor’s registration of the project.
➤ Meaning:
An investment certificate is a necessary condition for foreign investors to legally establish a foreign-invested company or carry out an investment project in Vietnam.
➤ Grant purpose:
The purpose of granting investment certificates is to enable state agencies to manage investment projects and monitor the progress of foreign investors. This is also one of the bases for state agencies to control foreign capital flows into Vietnam.
Cases requiring investment certificate
Foreign investors must apply for an investment certificate if they fall into one of the following cases:
- Foreign investors establish foreign-invested companies in Vietnam;
- A foreign investor is an organization when investing in a Vietnamese economic organization in the form of capital contribution, share purchase, capital contribution purchase or investment in the form of BCC in the following cases:
+ There is a foreign investor who is an individual holding more than 50% of the charter capital of the economic organization or the majority of the general partners of the economic organization are foreign individuals;
+ There is a foreign investor who is an organization holding more than 50% of the charter capital of the economic organization;
+ There is a foreign investor who is an individual and a foreign investor who is an organization holding more than 50% of the charter capital of the economic organization.
Notes on documents and procedures for applying for investment certificate
1. Documents required to apply for investment certificate
Foreign investors need to prepare the following documents:
➤ Legal documents of the investor:
- Passport of individual investor (notarized copy);
- Decision on establishment/business registration certificate of foreign investor being an organization (translated, notarized, consularized copy).
➤ Investor’s financial documents:
- Document verifying the investor’s bank account balance (consular legalization, translation, notarization);
- Audited financial statements of the foreign organization within the last 2 years (consular legalization, translation, notarization).
➤ Documents proving project location:
- In case of renting a house by a Vietnamese person: Lease contract, copy of land use right certificate;
- In case of renting an office in a commercial building: Office lease contract, copy of the building’s land use right certificate; copy of the business registration certificate, copy of the building’s construction permit/investment permit, fire prevention and fighting certificate/periodic fire prevention and fighting inspection record of the building.
2. Notes when applying for an investment certificate
Investment certificate issuing agency:
- Investment projects in the province that are not subject to investment policy approval are granted investment licenses by the Investment Department – Department of Planning and Investment of the province/city;
- Investment projects located in industrial parks and export processing zones will be granted investment licenses by the Management Board of industrial parks, export processing zones, high-tech zones and economic zones.
Normally, the application for an investment certificate is made before establishing a foreign-invested company. However, in some provinces (for example, Ho Chi Minh City), the Department of Planning and Investment requires the establishment of a foreign-invested company before applying for an investment license.
See more: Procedures for granting investment certificates to foreign investors.
———-
Differences in language and legal regulations on investment can cause foreign investors to encounter many difficulties when applying for investment certificates themselves. Therefore, to save time, costs and ensure smooth licensing, you can refer to the investment registration certificate application service of fdiinvietnam.com.
CALL NOW
Things to know after applying for investment certificate
Foreign investors need to carry out the following procedures after being granted an investment certificate:
- Carry out procedures to establish a foreign-invested company at the Department of Planning and Investment and complete the following procedures such as: carving a legal seal, hanging a company signboard, declaring initial taxes, and registering to use electronic invoices.
- Open a direct investment capital contribution account and make capital contributions to the account;
- Procedures for applying for a sub-license in case the company registers to do business in conditional industries;
- Implement investment projects in accordance with the provisions of the investment registration certificate.
Some questions about investment registration certificate
1. Which projects must be granted an investment certificate?
There are two basic types of projects that must apply for an investment certificate:
- Foreign investors establish foreign-invested companies in Vietnam;
- A foreign investor is an organization that, when investing in a Vietnamese economic organization, after the investment, the foreign investor holds more than 50% of the charter capital of the economic organization.
2. Which agency has the authority to issue investment certificates?
- Investment projects in the province that are not subject to investment policy approval are granted investment licenses by the Department of Planning and Investment of the province/city;
- Investment projects located in industrial parks and export processing zones will be granted investment licenses by the Management Board of industrial parks, export processing zones, high-tech zones and economic zones.
3. Do foreign investors have to prove their financial capacity when applying for an investment license?
Yes. Investors must request a document verifying the investor’s bank account balance or an audited financial report for the last 2 years of the institutional investor (if these documents are issued by a foreign agency, they must be consularized, translated, and notarized).
4. What is the purpose of issuing an investment certificate?
The purpose of granting investment certificates is to enable state agencies to manage investment projects and monitor the progress of foreign investors. This is also one of the bases for state agencies to control foreign capital flows into Vietnam.
5. After receiving the investment license, what should the investor do?
Investors need to quickly complete the procedures for establishing a company at the Department of Planning and Investment, open a direct investment capital account and contribute capital to the account, and apply for a sub-license for the company in case of registering for conditional business lines.
Call us at 0978 578 866 (North) – 033 9962 333 (Central) – 033 9962 333 (South) for support.