1. Legal opinion
In our experience, Nondestructive Testing Services is one of the services that are belonged to the scope of CPC (Central Product Classification) 8676 and under the Vietnam’s WTO Commitment, foreign business entities engaging in this field shall only be permitted to conduct this business when they satisfy the following specific conditions:
They may only be provided in the form of a joint venture after three years or in other forms after five years, as from the date on which Vietnamese private enterprise is permitted to conduct business in this service. And the date aforesaid shall be determined by competent authority.
The provision of services of technical testing and analysis shall be restricted [not permitted] in geographical locations as determined by the competent body for reasons of national defense and security.
Under Vietnam Investment Law, technical testing and analysis service is one of the conditional businesses, the expected newly set-up company will only be allowed to do such business if the licensing authority allow the newly set-up export company to do that.
In order to be issued the Investment Certificate cum Business Registration Certificate in Vietnam, foreign investors must have full conditions as follows:
a) Foreign investor is prestigious & effective trader of such service shown through incorporation certificate, audited financial statements of two last years, catalog, brochure, certificate (if any);
b) Expected head office of the FIC in Vietnam must be located in commercial building/office building;
c) The charter capital of the FIC should be at least 600,000 US Dollars;
d) The technical equipment and machineries that shall be used for the project in Vietnam should be high quality in the world;
We also note that, the procedures for setting up the technical testing and analysis company is appraisal procedure for issuance of Investment Certificate not registration procedure (appraisal procedure will be applied for the foreign investors want to set up company in some fields as technical testing and analysis business).
The duration of time for obtaining the Investment Certificate is at least 45 working days since the official & adequate submission to licensing authority. However, in practice, this time may be prolonged because the licensing authority must get approval from other competent authorities such as the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Investment, the Ministry of Construction before issuing the Investment Certificate.
2. Procedures for setting up company
2.1.Preparing the application dossier: We shall collect necessary information and documents from Client. Upon receipt of necessary information and documents from you, we shall translate documents from English into Vietnamese and prepare the application dossier under the standard forms. The initial drafted application dossier shall be sent to you for your comments. Then, after updating the application dossier based on your comments, we shall obtain the preliminary comments from the competent authority and send the finalized application dossiers for you to sign and seal.
We anticipate that this phase shall be completed within 10 working days.
Submission of application dossier: Within 02 working days from receipt of duly signed and sealed application dossier, we shall submit the application dossier to the competent authority.
2.2.Licensing Process:
Within 60 working days from submission of application dossiers to Licensing Authority, we will obtain the Investment Certificate.
2.3. Post licensing: Within 13 working days from completion of respective Licensing Process we shall complete the post licensing procedures including publishing the information of the Company in News Paper, obtaining seal and tax code registration.
