SBLAW would like to give you some information about setting up a wholly foreign invested company (hereinafter referred to as “FIC”) for management consulting services in Hanoi, Vietnam.
1.SETTING UP WHOLLY FOREIGN INVESTED COMPANY
The establishment of a FIC in Vietnam requires an Investment Certificate from the licensing authority.
Depending upon the location of the company, the licensing authority may be the Provincial People’s Committee (for companies located outside industrial or export processing zones) or the provincial Industrial and Export Processing Zones Management Authority (for companies located in industrial or export processing zones).
We would like to clarify that the procedure for establishment of a FIC in Vietnam generally takes a rather long time in comparison with other countries in the region.
Our practical experiences show that although the total time for establishment of a foreign invested company as stipulated under Vietnam Investment Law 2005 is only 45 days, the actual process may take a longer time due to that the competent authority must consult other relevant offices to evaluate the investment project.
Under Vietnam Law on Investment, for incorporating a foreign invested company (Hereinafter referred to as “FIC”), you are required to propose an Investment Project initially to obtain Investment certificate. The relevant licensing authorities shall evaluate the legitimacy and the feasibility of such Investment Project to determine on granting of the Investment Certificate on the following basis:
a.the legal framework including Vietnam’s WTO Commitments, Vietnam Investment Law, Vietnam Enterprise Law, Regulations applicable to specific industries as well as the master economic development plan of the city or province that the FIC shall register its head-office
b.Your financial ability, investment capital to put in the Investment Project, facilities and human resources serving the implementation of such investment project in Vietnam.
c. Head office of the FIC should be in line with master plan of the City.
2. INTRODUCTION TO MANAGEMENT CONSULTING SERVICES IN VIETNAM
It is our understanding that you are now considering possibilities of setting up a foreign invested company for management consulting services in Hanoi, Vietnam.
Vietnam Law does not impose any minimum capital required for FIC operating in the management consulting services.
The foreign investor can complete capital contribution within 36 months from the establishment of FIC in case FIC is structured under the form of Limited Liability Company.
Despite of that, competent authority may suggest Foreign Investor to complete its capital contribution within 12 months from the establishment of FIC.
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