What Important Step-by-Step Guide to Establish Company in Vietnam?

When foreign investors invest in Vietnam, they could establish company in Vietnam. Foreign investors have the right to choose the appropriate forms of enterprise such as a limited liability company, joint stock company, etc. with specific steps are as follows:

Step 1: Register the investment project

Investors submit an investment project registration file to the Business Registration office of the province or city or the management board of an industrial zone, an export processing zone or a high-tech zone for the approval of an investment project during the period within 15 days (without time for clarification).

Step 2: Apply for Certificate of investment registration

After approval of the investment project, investors submit a valid record tothe Department of Planning and Investment within 10 days to apply for a business registration certificate.

Step 3: Apply for the certificate of business registration

After obtaining the business registration certificate, the investor shall submit the application for enterprise registration certificate to the enterprise registration office within 3 days.

Step 4: Publish the content of the business registration

After being granted the certificate of enterprise registration, the investor shall disclose information about the enterprise on the national enterprise registration portal within 30 days, including the following information:

i, Business lines;

ii, List of founding shareholders and shareholders being foreign investors for joint-stock companies.

Step 5: Registered business stamp

The enterprise has the right to decide on the form, quantity and contents of the stamp of the enterprise. The content of the stamp must show the following information:

– Company’s name;

– Business code.

After receiving the legal entity stamp and before using the business stamp, the enterprise must send a notice on the stamp of the enterprise to the business registration office for publication in the National Information Portal on the business registration.

Step 6: Notice of use of stamp:

After having stamp made, investors submit notices on use of stamp forms to the Investment registration agency.After receiving the record, the Investment registration agency issues a receipt for the enterprise, publishes the notice of the enterprise on the National Business Information Portal and issues a notice of the posting, stamp samples of enterprises, branches and representative offices for enterprises.

Step 7: Open bank account:

Investors need to open two types of bank accounts, namely the investment capital account to receive the investment amount and the transaction account for conducting daily transaction in Vietnam.

Step 8: The post licensing procedures:

For the conditional business lines:

Investors investing in conditional businesses lines as regulated in Appendix 4 of the Investment Law 2014 must apply certificate of business qualification, practicing certificates, professional liability insurance, legal capital requirements, etc. before conducting business in Vietnam.

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New regulations on application procedures for registration of enterprise establishment

On December 27, 2017 the Government has already issued the Resolution No. 136/NQ-CP on streamlining of administrative procedures and application documentation concerning residence administration under the jurisdiction of the Ministry of Planning and Investment.

Accordingly, documentation requirements and contents of application and declaration forms necessary to apply for registration of establishment of enterprises will be subject to changes in the coming time, specifically including:

- In terms of documentation requirements:

Repealing the documentation requirement such as “Citizen Identification card, Identity card, passport or other legally-required documents" for application of registration of enterprises.

- In terms of application and declaration forms:

+ Replacing the regulation regarding “permanent address, nationality, numbers of Citizen Identification card, Identity card, passport or other evidences of legal person" by "personal identification numbers" in the contents of the Request and Certificate of Enterprise Registration.

+ Replacing information about citizen and Citizen Identification in sample documents, forms or declaration sheets, etc., required for registration of enterprises, by "family name, middle name and last name, and personal identification numbers”.

For more details, please read the Resolution No. 136/NQ-CP that will enter into force from the signature date.

Source: Thuvienphapluat.vn

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Please click here to learn more about ANT Lawyers Foreign Investment Practice or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

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Foreign investors allowed to purchase shares of logistics enterprises

This is a noticeable content of the Decree No. 163/2017/ND-CP on provision of logistics services. According to this Decree:

Foreign investors may purchase a certain ratio of shares and stakes in an enterprise upon provision of transport-related logistics services (previously, foreign investors have to establish a joint-venture).

In addition, a foreign investor in the country or territory that is a WTO member must comply with regulations on holdings and satisfy the following conditions:

- Regarding sea transport services (except for inland transport): Total number of foreign seafarers working on the ship shall not exceed 1/3 of ship’s crew. The captain or first mate must be a Vietnamese citizen.

- Regarding road transport services: all drivers of the enterprise must be Vietnamese citizens.

Notes: The provider that provides part or whole of logistic services on the Internet, cellular network or other open networks must comply with regulations on e-commerce.

The Decree No. 140/2007/ND-CP is null and void from the effective date of the Decree No. 163/2017/ND-CP (February 20, 2018).

Source: Thuvienphapluat .vn

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How ANT Lawyers Could Help Your Business?

Please click here to learn more about ANT Lawyers Foreign Investment Practice or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

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Vietnamese steel makers in battle against steep US import duties

The U.S. claims Chinese steel is being processed or shipped through Vietnam to avoid heavy taxes.

The Vietnam Steel Association (VSA) is working with the Ministry of Industry and Trade to protect what Vietnamese authorities call the legitimate rights and interest of local steel producers who have been accused of tax evasion by the U.S. Department of Commerce (DOC).

The DOC said it will apply the same anti-dumping and anti-subsidy rates on corrosion-resistant and cold-rolled steel from Vietnam that it does on the Chinese equivalents if they are produced using Chinese hot-rolled steel.

Although the products receive their corrosion resistant treatment or are cold-rolled in Vietnam, the DOC agreed with claims by American producers that as much as 90 percent of the products' value originates from China, according to Reuters.

Vietnamese cold-rolled steel will face combined preliminary U.S. anti-subsidy and anti-dumping duties of 531 percent, while corrosion-resistant steel will face combined duties of 238 percent. The final duties are expected to be announced on February 16.

The DOC said that after anti-dumping duties were imposed on Chinese steel products in 2015, shipments of cold-rolled steel from Vietnam to the U.S. shot up to $295 million annually from $11 million.

Dismissing the claim, the VSA said the processing of cold-rolled steel and corrosion-resistant steel from hot-rolled steel is a substantial transformation. The process involves many stages, which creates an added value equal to 30-40 percent of the products’ value, it said.

Thus, the U.S. claim is groundless, the VSA stressed.

Nguyen Thanh Trung, CEO of Ton Dong A Corporation, argued against the decision, saying that the company mainly uses materials imported from Japan to produce steel to export to the U.S.

His company is one of four Vietnamese steel makers that have been accused of importing Chinese steel for minor processing before shipping it to the U.S.

Vietnam imported 100,000 tons of hot-rolled steel from China in the first 11 months of this year, which accounted for just 2 percent of the country’s total imports of the product during that time, according to the General Department of Customs.

Commenting on the issue, the Ministry of Industry and Trade said cold-rolled steel and corrosion-resistant steel produced in Vietnam from imported steel should be considered Vietnamese products.

According to the World Trade Organization’s rules of origin, a country is considered the origin of goods if it is where a substantial transformation to create the goods is carried out, it said.

Vietnam affirms that the production of cold-rolled steel and corrosion-resistant steel from imported hot-rolled steel is a substantial transformation, the ministry added. “Thus, there is no tax evasion as claimed by the DOC.”

Diversify markets

The U.S. decision is expected to have negative impacts on Vietnam’s steel industry, said economist Le Dang Doanh. “This is a regrettable decision for Vietnam. The country should make efforts to clarify any doubts held by the U.S., and demonstrate that the steel products it exports to the U.S. do not originate from China.”

He said local steel makers should upgrade their technology and cut production costs to make their products more competitive, while diversifying export markets.

Predicting risks in the U.S. market, some local steel makers have expanded their exports to other markets and sought alternative sources of input material.

Pham Manh Hung, CEO of steel producer Nam Kim, said his company stopped using hot-rolled steel from China after the U.S. launched a formal investigation into whether Chinese companies were shipping steel through Vietnam to avoid import tariffs late last year.

The company has increased its use of products imported from other markets such as India, South Korea and Japan, or those locally produced to avoid risks.

Vietnamese steel products are exported to more than 50 countries and territories, including ASEAN, the E.U., South Korea, India and Taiwan. The country’s steel shipment to the U.S. accounted for 13 percent of its total steel export in the first eight months of this year, lower than the ratio of 27 percent in the same period last year, said the VSA.

Vietnam earned over $2.7 billion from iron and steel exports in the first 11 months, surging 52.8 percent over the same period last year, according to the General Statistics Department.

Source: E.vnexpress

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