This is reference to your email from which, we understand that you, (hereinafter referred to as “Client”) are now seeking legal advices for establishment of Foreign Invested Company in Vietnam (hereinafter referred to as “FIC”).
We further noted that upon establishment, FIC shall implement import right and export right of house holding product and tools.
Thus, we are pleased to present herewith our Legal Service Proposal for your kind reference.
1. General Comments
The establishment of a FIC in Vietnam requires an Investment Certificate from the licensing authority. Depending upon the location of the company, the licensing authority may be the Provincial People’s Department of Planning and Investment (for companies located outside industrial or export processing zones) or the provincial Industrial and Export Processing Zones Management Authority (for companies located in industrial or export processing zones).
We would like to clarify that the procedure for establishment of a FIC in Vietnam generally takes a rather long time in comparison with other countries in the region. Our practical experiences show that although the total time for establishment of a foreign invested company as stipulated under Vietnam Investment Law 2014 is only 15 days, the actual process may take a longer time due to that the competent authority must consult other relevant offices to evaluate the investment project.
In order to setup a FIC, it shall require you to undergo two following steps:
Step 1: Obtainment of Investment Certificate. The Law requires that within 15 working days from submission of the application dossier the competent authority shall have to issue the Investment Certificate for Foreign Investor. For granting the Investment Certificate, the relevant licensing authorities shall evaluate the legitimacy and the feasibility of such Investment Project to determine on granting of the Investment Certificate on the following basis:
Legal framework including Vietnam’s WTO Commitments, Vietnam Investment Law, Vietnam Enterprise Law, Regulations applicable to specific industries as well as the master economic development plan of the city or province that the FIC shall register its head-office.
Your financial ability, investment capital to put in the Investment Project, facilities and human resources serving the implementation of such investment project in Vietnam.
Step 2: After obtainment of Investment Certificate, Client shall be required to obtain the Certificate of Enterprise Registration. The Law requires that within 05 working days from submission of application dossier, the competent authority shall have to issue the Certificate of Enterprise Registration for forming the FIC.
Step 3: After obtainment of Investment Certificate, Client shall be required to obtain the distribution from provincial People Committee. It shall take about 30 working days from submission of application dossier for the competent authority to issue Import/Export Business License to FIC.
The roadmap for the incorporation of the FIC in this case can be described in following steps as follows:
a. Preparing the application dossier: We shall collect necessary information and documents from you. Upon receipt of necessary information and documents from you, we shall translate documents from English into Vietnamese and prepare the application dossier under the standard forms. The initial drafted application dossier shall be sent to you for your comments. Then, after updating the application dossier based on your comments, we shall obtain the preliminary comments from the competent authority and send the finalized application dossiers for you to sign and seal. We anticipate that this phase shall be completed within 10 working days.
b. Licensing Procedure: – 02 working days from receipt of documents duly signed and sealed from Client, we shall submit the application dossier for starting the licensing procedure. It shall take about 20 working days from submission of application dossier to the competent authority for the provincial licensing authority to grant the Investment Certificate. – 03 working days from receipt of Investment Certificate issued by the competent authority, we shall submit the application dossier for obtainment of Certificate of Enterprise Registration. We shall obtain the Certificate of Enterprise Registration within 06 working days from the submission date.
c. Post licensing: Within 15 working days we shall complete the post licensing procedures such as publishing the FIC in News Paper, obtaining seal.
d. Obtaining Import/Export Business License: 02 working days from receipt of documents duly signed and sealed from Client, we shall submit the application dossier for starting the licensing procedure. It shall take about 2 months from submission of application dossier to the competent authority for the provincial licensing authority to grant the Import/Export Business License
For avoidance of any doubt, in practice, the administrative procedure can be longer due to that the competent authority must consult relevant ministries before granting License. In such case, SB Law shall try its best to accelerate the progress in order to obtain the approval at the soonest. 5. PROFESSIONAL FEE
2. The Price for performing the SB Law services as mentioned in item 4 above will be as follows:
– For obtaining Investment Registration Certificate: 4,000USD (Four thousand US Dollar);
– For obtaining Enterprise Registration Certificate: 350USD (Three hundred and fifty US Dollar); – For obtaining Import License: 1,000USD (One thousand US Dollar);
– Our cost is exclusive of 10% VAT and actual cost for translating your documents from English into Vietnamese: 10USD/150 words.
– Please note that our service fee is quoted on the basis of full package service fee. In case Client would like to engage us with a separate service package, we reserve our right to requote our service fee.