Guidance on compulsory social insurance for foreign employees working in VietnamInvestment registration and Enterprise registration certificate for foreign investors in Vietnam
According to ‘Doing Business Report 2019’ article of the World Bank, the time-period for starting a business in Vietnam is getting better.
As a foreign investor in Vietnam, after being approved to establish a wholly foreign owned company, the competent authorities will issue 2 certificates for the investor, namely Investment registration certificate and Enterprise registration certificate.
Investment registration certificate (IRC)
IRC means a paper or an electronic document acknowledging information on an investment project registered by an investor.
Investment projects of foreign investor, foreign owned capital company that foreign investors hold 51% or more of charter capital are cases for which investment registration certificates are required.
Procedures for grant of investment registration certificates
For investment projects subject to investment policy decision, investment registration agencies shall grant investment registration certificates to investors within 5 working days after receiving investment policy decisions.
For investment projects not subject to investment policy decision, the investors shall submit application file for investment registration certificates to the investment registration agency; Within 15 days after receiving a complete application file, the investment registration agency shall grant an investment registration certificate. In case of refusal, it shall issue a written reply clearly stating the reason to the investor.
Enterprise registration certificate (ERC)
ERC is a hard-copy or soft-copy document containing enterprise registration information granted by a business registration agency to an enterprise.
An enterprise shall be granted an enterprise registration certificate when fully meeting the following conditions:
Its business line to be registered is not banned;
Its name complies with the laws;
It has a valid enterprise registration dossier;
It has paid in full the enterprise registration fee in accordance with the law on charges and fees.
Order and procedures for enterprise registration
The enterprise founder or authorized person shall submit an enterprise registration dossier as prescribed by the laws to the business registration agency.
The business registration agency shall examine the validity of the enterprise registration dossier and grant an enterprise registration certificate within 3 working days after receiving such dossier. If refusing to grant the enterprise registration certificate, it shall notify in writing such to the enterprise founder, clearly stating the reason and requirements for dossier modification and supplementation.
Every organization and individual wishing to set up a foreign owned company in Vietnam shall need to meet some specifics conditions as promulgated under the Law on Investment and Law on Enterprise.
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This alert is for general information only and is not a substitute for legal advice.