Legal News
Investment & enterprise registration procedures for foreign investment (Part 2)

20 June 2017

VGP

The Ministry of Planning And Investment on April 18, 2017 issued Circular No. 02/2017/TTBKHDT (“Circular 02”) guiding the interagency coordination mechanism for performing investment and enterprise registration procedures for foreign investors as prescribed by Article 24 of Decree No. 118/2015/ND-CP dated 12/11/2015 of the Government.

Question: What are Process and procedures under the interagency coordination mechanism?

Answer: As per the interagency coordination mechanism, the number of application files for investment registration and enterprise registration must comply with the Investment Law and Enterprise Law. However, where there is a similarity in document types between the Investment and Enterprise registration files, the Investment Registration Authority will cooperate with the Enterprise Registration Authority in exchanging information and requiring investors to submit only one copy of such document type.

Accordingly, foreign investors may apply for investment registration and enterprise registration simultaneously in the following process:

- Foreign investors submit the Investment Registration Receiving Section of the Department of Planning and Investment (“DPI”), the application files for registering investment and enterprise establishment or capital contribution, share purchase, contributed capital acquisition and amendment of the contents of the enterprise and investment registration in relation to any capital contribution receiving company and receive a Submission Receipt.

- The Investment Registration Receiving Section will input the application file information into the Interagency Coordination Information Portal or hand over the application files for registering enterprises/amendment of the enterprise registration contents by the capital contribution receiving company to the Business Registration Department;

- The Investment Registration Receiving Section and the Business Registration Department examine the validity of the application files:

o Investment Registration Department: handles the application files for investment registration.

o Business Registration Department: examines the validity of the application files within 02 working days of their receipt:

If the application file is valid: notify the Investment Registration Receiving Section; and

If the application is invalid: notifies the Investment Registration Receiving Section of revisions and supplements to the application files for investment registration in order to guide investors to complete them. The requested revisions and supplements will be posted on the National Business Registration Portal.

- In terms of sending investors the result: within 01 working day of receiving the Approval for capital contribution, share purchase, contributed capital acquisition by foreign investors/Enterprise Registration Certificate/Confirmation on changes in enterprise registration contents from the Business Registration Department, the Investment Registration Receiving Section finalize the matter and send investors the result.

Besides, Circular 02 also provides guidance on the procedures for performing the interagency coordination mechanism if a foreign investor invests in establishing an economic entity under standby procedures when the Interagency Coordination Information Portal is undergoing routine maintenance or upgrades, encounters technical problems, or is affected by any other force majeure events.

Circular 02 will take effect as from 15/06/2017.

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