Enquiry on M&A of company in Vietnam

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Question: Regarding to our phone conversation,I am sending you the data.

The company:

founded: May. 2015.
present owners: Vietnamese citizens.

business activities:

6201 (Main)

Computer programming

6202

Computer consultancy and system administration

6209

Other information technology and computer service activities

6311

Data processing, hosting and related activities

6312

Web portals

5820

Software publishing

4651

Wholesale of computer, computer peripheral equipment and software

4652

Wholesale of electronic and telecommunications equipment and supplies

4741

Retail sale of computer, computer peripheral equipment, software and telecommunication equipment in specialized stores

4742

Retail sale of audio and video equipment in specialized stores

7911

Travel agency activities

7912

Tour operator activities

7920

Other reservation service activities

7710

Renting and leasing of motor vehicles

4931

Land transport of passengers by urban or suburban transport systems (except via bus)

4932

Other land transport of passenger

4933

Freight transport by road

5510

Short-term accommodation activities

5610

Restaurants and mobile food service activities

5630

Beverage serving activities

6329

Other information service activities n.e.c

 

The buyers: foreign citizens.

Buying shares: 40 %

I would like you to do:

to make the contract (If you are choosen I will visit you and give you a draft),

to make the registration process.

I would like to know your fee and every additional free (for example: registration fee for Vietnamese government).

Answer: This is reference to your email below. Further to our discussion this morning, I would like to have some comments as follows:

We can classify registered business lines of this company into 06 groups:

Group 1: Computer programming; Computer Consultancy and system administration; Other information technology and computer service activities; Software publishing; Short-term accommodation activities; Restaurants and mobile food service activities; Beverage serving activities

Group 2: Wholesale of computer, computer peripheral equipment and software; Wholesale of electronic and telecommunications equipment and supplies; Retail sale of computer, computer peripheral equipment, software and telecommunication equipment in specialized stores; Retail sale of audio and video equipment in specialized stores.

Group 3: Data processing, hosting and related activities; Web portals; Other reservation service activities;Other information service activities n.e.c

Group 4: Land transport of passengers by urban or suburban transport systems (except via bus); Other land transport of passenger; Freight transport by road

Group 5: Travel agency activities; Tour operator activities

Group 6: Renting and leasing of motor vehicles.

For Group 1, if your friend purchases just 40% shares, he/she faces with no trouble. He/she can sign off the share purchasing contract and request to register him as new shareholder/member of the local company. Depending on type of the local company, the procedure may be different. Our fee for this case shall be about 1,350-1,800USD. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.

For group 2: Your friend shall have to obtain approval for purchasing shares from local company. After approval, he/she shall be registered as new member/shareholder of the local company. He/she also have to obtain Certificate of Investment Registration. Finally is to obtain Import/Distribution License. Our fee for this case shall be about 4,550-6,800USD. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.

For group 3: Your friend shall have to obtain approval for purchasing shares from local company. After approval, he/she shall be registered as new member/shareholder of the local company. The approval can be granted based on case by case basis, depending on detailed explanation on the business plan. He/she also have to obtain Certificate of Investment Registration. Our fee for this case shall be about 4,550USD upward. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.

Group 4:Your friend shall have to obtain approval for purchasing shares from local company. After approval, he/she shall be registered as new member/shareholder of the local company. The approval can be granted based on case by case basis, depending on detailed explanation on the business plan. He/she also have to obtain Certificate of Investment Registration. Our fee for this case shall be about 5,550USD upward. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.

Group 5: In the company, there must be at least one member/shareholder being a company licensed for tour operation. Otherwise, the company has to remove this group from its business registration before the acquisition. Your friend shall have to obtain approval for purchasing shares from local company. After approval, he/she shall be registered as new member/shareholder of the local company. The approval can be granted based on case by case basis, depending on detailed explanation on the business plan. He/she also have to obtain Certificate of Investment Registration. Our fee for this case shall be about 4,000USD. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.

Group 6: Your friend must have South-East-Asia Citizenship, i.e. Thailand, Lao, Cambodia, Singapore etc. Otherwise, the company has to remove this group from its business registration before the acquisition. Your friend shall have to obtain approval for purchasing shares from local company. After approval, he/she shall be registered as new member/shareholder of the local company. The approval can be granted based on case by case basis, depending on detailed explanation on the business plan. He/she also have to obtain Certificate of Investment Registration. Our fee for this case shall be about 6,800USD upward. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.

If you friend involve with two groups upward, the highest rate of our service fee shall be applied. For example, he/she wants to have Group 1 and 2, then, our fee shall be 4,550-6,800USD. The fee is exclusive of 10% VAT and actual cost for translating your document from English into Vietnamese (10USD/150 words) and actual cost for our lawyer to travel out Hanoi or Ho Chi Minh City if such company locates outside of Hanoi or Ho Chi Minh City.