It is our understanding that foreign invested company (FIC) was established under Investemtn Vietnam Law with business activities of software development.
Investment Capital of FIC is 100,000USD (In word: One hundred thousand US Dollar).
At present, FIC intends to expand its business scope into importation and distribution of camera product having HS Code No. 9006400.
1.Legal framework for amending of Investment Certificate
Under Vietnam Law, before expanding the business activities, Client shall be required to apply for amendment of Investment Certificate.
According to our experience in similar previous case, success possibility of amendment of Investment Certificate for expanding business scope shall very much depend on Client’s satisfaction of following conditions:
– Client must have completed capital contribution as committed;
– Current business result must be positive and Client must have audited financial statement as evidence.
– Relation between current business activities and business activities. We note that in this case, there is no relationship between the current business activities – software development and business activity to be supplement – import and distribution of camera product. Thus, in order to secure the success possibility of amendment of investment certificate, we can register this business activity as new investment project of the Client in Vietnam. However, parent company must provide sufficient evidence to prove that it has experience in the field of trading or manufacturing camera products.
– Client must consider increasing the charter capital in order to secure the feasibility of the expanded business activities. According to our practical experience, in this case, Client should increase the charter capital from 100,000USD to 300,000USD.
– Client must strictly have complied with Vietnam Law during the operation, including, submission of regular report on project implementation process etc..
2. Implementation of import right and trading right
Implementation of import right and trading right against camera products is classified to conditional investment sector in Vietnam.
Thus, amendment of Investment Certificate to supplement this business activity shall subject to investment evaluation process.
Accordingly, before issuance the amended investment certificate, competent authority must consult relevant Ministries and competent authority including Ministry of Planning and Investment, Ministry of Industry and Trade, Ministry of Finance, Hanoi Department of Industry and Trade…
Thus, generally, the licensing process may last in 03-04 months from the submission of application dossier.
