It is our understand that the Client is also considering to establish a joint venture companyunder the type of limited liability company in Ho Chi Minh City(hereinafter referred to as “NewCo”).
Accordingly, the NewCo will mainly focus on goods importation/exportation activities.
Under Vietnam Law on Investment and Vietnam WTO’s Commitments, it is possible for foreign Investorsto set up a joint venture company in Vietnam operating in the field of goods importation/exportation services.
However, under our practical experience, currently the Vietnam State shall require the foreign Investor should be a business entity to open the company for exercising importation services.
In the contrary, in case of doing exportation services then the individual Investors could be accepted to set-up the company. Therefore, the Client should carefully consider about this before implementing.
Futhermore, we also would like to remind you some key points that we advised to you at the meeting, including:
- The Investors must be experienced in the field of importation/exportation services. Especially as mentioned-above, if doing importation rights then the foreign Investor must be business entity and have experiences in this field accordingly..
- Although Vietnam Law on Investment does not imply a minimum amount of charter capital to setup a company operating in the field of goods importation/exportation, the charter capital for establishment of NewCo should be at least 150,000 USD to 200,000 USD and the Investors must prove the availability of such amount.
- The foreign Investor could use banking statement to prove the financial capacity. For your further understanding in this matter, it is noted that Charter Capital can be contributed in many installments without beyond thirty-six (36) months upon the receiving of Investment Certificate;
- The Investor must provide the papers/documents proving the lawful ownership of the landlord as well as using rights of the Investor regarding the NewCo’s proposed registered address. Besides, to use the warehouse (if any), the Investor must obtain the acceptance from the District People’s Committee;
- HS Code of proposed trading products must be exclusive of List of restricted/abandoned-trading products, etc. Such lists could be promulgated and changed from time to time by The State Authorities.
The most outstanding important of this type that is the Joint Venture Agreement shall be signed by both parties, in which clearly stated on distribution, management, profit division, etc. of the NewCo.
Based on this crucial agreement, both parties could effectively manage the NewCo’s administrative system as long as conduct its business activities.
The common period of granting Investment Certificate for this type of company is in the region of forty-five to fifty (45 – 50) working days from submission valid dossier.
SBLAW is ready to provide package service to you for the purposes of establishing joint venture company in Ho Chi Minh City as follows:
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SCOPE OF SERVICES |
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| Preparation of the application documents:
· Notifying application documents required in accordance with Vietnamese law; · Drafting application documents required for submission purpose including application, power of attorney, board resolutions in English language; · Liaising with you to discuss the draft application documents; · Amending the application documents based on your comments; · Obtaining preliminary comments from the licensing authority on the draft application documents; · Finalizing the application documents following comments from the licensing authority; and · Translating the final version of the application documents into Vietnamese for execution. |
| Licensing procedures:
· Submitting the application dossier to the licensing authority on your behalf; · Monitoring and following up with the relevant authorities on the approval process; · Keeping you updated on the developments and additional requirements, if any; and · Assisting you in obtaining the Investment Certificate. |
| Post-licensing procedures:
· Obtain the Seal and Certificate of Seal Sample Registration from Police Department of Ho Chi Minh City; · Registering the Tax Identification Number in Tax Department; · Placing an announcement on the establishment in daily printed newspaper. |
If you would like further information on Establishment of a joint venture company in Ho Chi Minh City, please either email to our Partners at: info@sblaw.vn or call to our Office:
Ha Noi Office: +84 (4) 62 62 0246
HCM Office: +84 (8) 35 208 101.
