Question: Our company is a multi-member limited liability company. In the near future, a foreign investor plans to contribute 2 billion VND and join the Member’s Council of the company. We would like to request legal advice regarding the conditions for work permit exemption, or the necessary legal procedures and required documents to apply for a work permit in case this investor is not eligible for the exemption.
Answer:
- Conditions for work permit exemption for foreign investors
Under current legal regulations, a foreign investor contributing capital to a multi-member limited liability company is not automatically exempt from a work permit if the value of their capital contribution does not meet the statutory threshold.
Specifically, a member of the Member’s Council of a multi-member limited liability company is only not subject to a work permit (exempt from a work permit) when their capital contribution value is 3 billion VND or more. Since the foreign investor plans to contribute only 2 billion VND (below the required threshold of 3 billion VND), this investor will not be eligible for a work permit exemption. The company is strictly required to proceed with the procedures to apply for a work permit before this person commences working in Vietnam.
(Legal basis: Point b, Clause 2, Article 154 of the 2019 Labor Code; Clause 2, Article 7 of Decree No. 152/2020/ND-CP (amended and supplemented by Decree No. 70/2023/ND-CP)
- The procedure and steps for requesting a work permit
– Step 1. Explain the demand for utilizing foreign workers: At least 15 days prior to the expected date of employing foreign workers, the company must submit a report explaining the demand for foreign workers to the Ministry of Labor, Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs where the foreign worker is expected to work.
– Step 2. Submit the application dossier for a work permit: At least 15 days before the date the foreign worker is expected to start working, the company must submit an application dossier for a work permit to the competent authority.
– Step 3. Receive the result: Within 05 working days from the date of receiving a complete and valid dossier, the competent authority will issue the work permit. In case of refusal, a written response clearly stating the reasons will be provided by the authority.
(Legal basis: Article 4 and Article 11 of Decree No. 152/2020/ND-CP (amended and supplemented by Decree No. 70/2023/ND-CP)
- Documents for the work permit application procedure
The documents include:
– An application form for the work permit issued by the employer (according to Form No. 11/PLI issued with Decree No. 152/2020/ND-CP);
– A health certificate or medical examination certificate valid for 12 months;
– A criminal record certificate issued within the last 06 months;
– Documents or papers proving status as an investor (Enterprise Registration Certificate, Investment Registration Certificate showing the contributed capital);
– 02 color photographs (4 cm x 6 cm size, white background, looking straight, no colored glasses) taken within the last 06 months;
– A certified copy of a valid passport as per regulations. Quantity: 01 set.
If your business requires legal advice and assistance regarding Work Permits for foreign investors contributing capital to a Vietnamese company, please contact SB Law for detailed consultation from our legal experts.
