SBLAW would like to introduce about setting up Freight Transportation Agency Service and Warehouse Service company in Vietnam as follows:
1. OUR COMMENTS
Pursuant to the information provided by Client, we understand that the Freight Forwarder Activity is classified into business lines of Freight Transportation Agency Service and Warehouse Service.
Regarding these two business lines, there is no market access condition applied to a foreign investor as per Vietnam’s WTO Commitments and Law on Investment. Therefore, it is feasible for Client to establish a 100% foreign-invested company to provide Freight Transportation Agency Service and Warehouse Service in Vietnam.
Under Vietnamese Law on Investment, for setting up FIC in Vietnam operating Freight Forwarder Activity, Client is required to propose an Investment Project initially to obtain Investment Registration Certificate. The relevant licensing authorities shall evaluate the legitimacy and the feasibility of such Investment Project to determine on granting of the granting of the Investment Certificate on the following basis:
The legal framework including Vietnam’s WTO Commitments, Vietnam Investment Law, Vietnam Enterprise Law, Regulation 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.
Client’s financial ability, investment capital to put in the Investment Project, facilities and human resources serving the implementation of such investment project in Vietnam.
Head of office of the FIC should be line with master plan of the Province. In this case, there is no strict requirement for head office address applied for the FIC’s expected business sectors. However, you should make sure that the lessor who sign the Office Lease Contract with you can provide sufficient evidence proving his/her legal ownership to the office.
In order to setting up FIC with the business lines as above-mentioned, you have to undergo the following steps as follows:
Step 1: Obtaining Investment Registration Certificate;
Step 2: Obtaining Enterprise Registration Certificate;
The Roadmap for incorporation of the FIC can be described in the following steps as follows:
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 from 7 working days. The prepared documents shall then be sent to you for review, signing and seal.
Setting up Company:
(i).Within 02 working days from receipt of duly signed and sealed application dossier, we shall submit the application dossier to the competent authority. Within 20 working days from submission of application dossier to Licensing Agency, we shall obtain Investment Registration Certificate for Client.
(ii).Within 02 working days from receipt of Investment Registration Certificate, we shall submit the application dossier for business registration to the competent authority. Within 07 working days from submission of application dossier to Licensing Agency, we shall obtain Enterprise Registration Certificate for Client.
Post licensing: Within 02 working days we shall complete the post licensing procedures such as Obtaining Seal Sample.
2. Scope of works
With regards to the establishment of FIC in Vietnam, our scope of work shall be as follows.
2.1. Preparation of the application documents:
- Notifying application documents required in accordance with Vietnamese law;
- Drafting application documents required for submission purpose in English language;
- Liaising with Client to discuss the draft application documents;
- Amending the application documents based on Client’s 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.
- Submitting the application dossier to the licensing authority on Client’s behalf;
- Monitoring and following up with the relevant authorities on the approval process;
- Keeping Client updated on the developments and additional requirements, if any; and
- Assisting Client in obtaining certificate and/or license.
2.3. Post-licensing procedures:
- Obtaining Seal Sample
3.1.The fee for performing the SB Law services as mentioned in item 4 above will be USD 4,000 (In words: Four thousand US Dollars). Our cost is exclusive of 10% VAT, cost for translation of documents from English to Vietnamese (10USD/150 words), travel and accommodation expenses of our Lawyers in case being required to perform work in areas outside Hanoi and Ho Chi Minh and other costs incurred on behalf of the Client (if any).
3.2. Services fee shall be paid to SB Law as follows:
Within 05 working days from the date of signing the legal service contract, Client will pay for SB Law an advance payment which accounting for 60% of the total estimated services fee.
Client will pay the remained fee and other cost and disbursement incurred on Client’s behalf within 05 working days from obtainment of the Enterprise Registration Certificate.
Client shall immediately notify SB Law of when actual payment(s) will be made on the amount specified in the invoice(s). SB Law will start working only upon receipt of payment of the respective invoice(s).
Alternatively, SB Law reserves the right to withdraw the service if payment is not received 10 days after the date of the invoice. Further, in the event payments are not received by the payable date, SB Law reserves the right to suspend services and/or levy and collect a late payment fee of 0.5% per month up to the date of receipt of payment by SB Law.