ESTABLISHMENT OF ENTERPRISES WITH FOREIGN INVESTMENT CAPITAL (FDI)
In the context that Vietnam continues to be an attractive destination for international investment flows, the demand for establishing enterprises with foreign investment capital (FDI) is increasingly rising. However, unlike domestic enterprises, the process of establishing an FDI enterprise requires investors to carry out many specialized legal procedures and strictly comply with legal regulations.
Customers who are interested in procedures for support in Establishment of enterprises with foreign investment capital, please contact Dai Quang Minh Law Company via Zalo/Hotline: 0932.191.299 to receive free, fast, accurate, and comprehensive support.
In addition, Dai Quang Minh Law Firm is providing Customers with services regarding other Sub-licenses; Enterprise registration; Investment; Foreign labor; Regular consulting for business operations domestically and internationally.
1. There are 02 forms when establishing enterprises with foreign investment capital
When foreign investors want to participate in business activities in Vietnam, current law recognizes 2 basic forms to implement. Depending on objectives and strategies, investors can choose one of the two approaches below.
a. Establishing an enterprise with 100% foreign investment capital
Foreign investors independently establish a company in Vietnam without the need for capital contribution from domestic partners. This means that all rights of management, control, and development orientation of the enterprise are decided by the foreign investors.
This form is often chosen in fields such as trade, manufacturing, logistics, technology or professional services.
Highlights of this form:
- Full proactiveness in management and operation of the enterprise;
- Good protection of internal elements such as technology, processes and business strategies;
- Flexibility in profit distribution and remittance of profits abroad.
Notes:
- Compared to domestic enterprises, procedures for establishing a 100% foreign-owned company are more complex. Investors are required to follow a two-step process:
+ Apply for Investment Registration Certificate (IRC));
+ Then proceed to Enterprise Registration (ERC).
b. Purchasing capital contribution or shares in a Vietnamese company
Instead of establishing a new company, foreign investors can choose to participate in an operating Vietnamese enterprise by purchasing shares or receiving transfer of capital contributions.
After completing procedures, the enterprise will be recognized as an enterprise with foreign investment capital in accordance with current regulations.
Highlights of this form:
- Saving time compared to establishing a company from scratch
- No need to rebuild the operating system
- Able to immediately utilize existing resources such as customers, personnel, and operating systems
Notes:
Investors need to carefully examine conditions related to ownership ratios and business lines. Some sectors still have certain limitations for foreign capital according to legal regulations and international commitments.
2. Benefits of establishing enterprises with foreign investment capital
Investing properly and fully complying with legal regulations not only helps enterprises operate legally but also brings many clear advantages:
Clear legal basis: The enterprise is officially recognized, eligible to sign contracts, operate business and recruit personnel
Access to preferential policies: Some sectors and investment locations may enjoy incentives on tax and administrative procedures
Enhancing credibility: Enterprises with foreign capital often create higher trust in cooperation and transactions
Limiting legal risks: Proper implementation from the beginning helps avoid violations leading to penalties or operational interruptions
Expanding market opportunities: Vietnam is currently an attractive destination with competitive costs and a stable business environment
???? With the above advantages, choosing the right investment form will be an important starting step for a long-term development strategy.
3. Common difficulties when self-performing procedures
Many investors think that only preparing complete documents is enough to complete procedures quickly. However, in reality, this process often generates many issues:
- Not clearly understanding legal regulations applicable to each specific case;
- Documents being required to be amended due to incorrect forms or invalidity;
- Consular legalization and translation procedures taking a lot of time;
- Difficulties in proving financial capacity;
- Confusion when working with State authorities;
- Risk of penalties if implemented incorrectly or behind schedule.
Many investors have shared that they spent a lot of time handling documents themselves but still did not achieve expected results, even incurring unexpected costs.
???? Therefore, having support from a professional consulting unit from the beginning is becoming a trend chosen by many investors.
4. Customers need consulting support
In the context that Vietnam continues to strongly attract foreign investment flows, understanding legal regulations related to enterprise establishment is becoming increasingly important. Especially for foreign investors, choosing the right investment form from the beginning not only helps optimize time and cost but also limits legal risks during business implementation.
Customers who are interested in procedures for support in Establishment of enterprises with foreign investment capital please contact Dai Quang Minh Law Company via Zalo/Hotline: 0932.191.299 to receive free, fast, accurate, and comprehensive support.
In addition, Dai Quang Minh Law Firm is providing Customers with services regarding other Sub-licenses; Enterprise registration; Investment; Foreign labor; Regular consulting for business operations domestically and internationally.
During the operation process, if Customers have any questions or need support, please contact Dai Quang Minh Law Firm. We are always ready to support and accompany Customers in the process of establishment, operation and development.
Wishing Customers sustainable development and breakthrough success.
Sincerely thank you./.
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