During the process register an investment in Vietnam, especially for foreign investors or projects involving foreign investment, investment certificate is a mandatory legal procedure that is decisive for the legality of the project.
1. What is an investment certificate? When is an investment license required?
What is an investment certificate?
According to Investment Law 2020, Certificate of Investment Registration (commonly referred to as an investment certificate or investment license) is a document issued by the competent state agency, recording the registration information of investment project, including:
- Investor
- Project objectives and scope
- Investment capital
- Operating period
- Project location
- Progress
This is an important legal basis for investors to implement projects in Vietnam.
When is an investment license required?
According to regulations, Not all projects require an investment registration certificate.. Cases must apply including:
- Investor foreign countries implement the project in Vietnam
- Vietnamese businesses have foreign investors contribute capital, purchase shares falling under the category requiring investment registration procedures
- Investment projects of economic organizations with foreign investment capital in accordance with the provisions of the Investment Law
- New investment projects and expansion projects require adjustments to investment content.
On the contrary, domestic investor carry out a regular project not required must apply for an investment certificate, unless otherwise specified by law.
See more: Business Mergers and Acquisitions (M&A) Advisory Services
2. What are the requirements for applying for an investment registration certificate?
To be granted an investment license, the project must meet meet all the conditions under the Investment Law and its guiding documents, including:
Conditions regarding the investing entity
- Investors have legal capacity, financial capacity
- Not subject to restrictions or prohibitions on investment under Vietnamese law
Conditions for investment sectors
- Planned investment sectors not subject to investment restrictions
- For conditional investment sector, must fully meet the corresponding conditions (statutory capital, sub-licenses, professional certificates, etc.)
Project location requirements
- Yes legal location, in accordance with the planning
- Meet land and environmental requirements (if any)
Capital investment requirements
- Capital investment appropriate to the scale and field of the project
- There is documentation proving the investor's financial capacity.
3. What is required for an investment certificate application?
Application investment registration certificate prepared according to each type of project, but basically includes:
- Document proposing the implementation of an investment project
- Investor's legal documents (ID card/citizen identification card/passport or business registration certificate)
- Investment project proposal (objectives, scale, capital, schedule, labor requirements, etc.)
- Documents proving the investor's financial capacity
- Lease agreement or documents proving the right to use the premises
- Technology justification (if the project uses technology subject to assessment)
Preparing the documents correct – sufficient – practical is the key factor determining the processing time for applications.
4. Procedures for applying for an investment certificate
The current investment license application process is carried out in the following basic steps:
Step 1: Prepare and review the documents
- Identify the right target audience and project type
- Assess legal conditions and risks
Step 2: Submit your application
- Submit at Department of Planning and Investment or Industrial Zone/Economic Zone Management Board (depending on the project location)
Step 3: Review the application
- Government agencies review the validity and content of the project
- You may request clarification or additional documentation.
Step 4: Issue the investment registration certificate
- Typical processing time: 15 business days from the date of receipt of complete and valid documents (except in cases where investment approval is required)
5. Important considerations when applying for an investment license
When applying for an investment certificate, businesses should pay special attention to the following:
- Identify correctly investment sector from the outset to avoid having to amend the investment registration certificate later
- Thorough evaluation foreign investor equity ratio
- Prepare a project site that complies with the master plan.
- Do not declare investment capital that is unfounded or unfeasible.
- Comply with the capital contribution schedule as specified in the investment certificate
Errors during this phase may lead to delay processing time or be denied a license.
See more: Full-Service Legal Retainer for Businesses
6. FundGo Law's Investment Certificate Application Service
What does FundGo Law support?
FundGo Law provides Comprehensive investment license application service, including:
- Legal advice prior to investment registration
- Assess the project's eligibility for licensing
- Prepare investment registration documents
- Representative working with the competent state agency
- Support adjustment of investment licenses when there is a change
- Consulting on post-licensing procedures (business establishment, subsidiary licenses, etc.)
Why choose FundGo Law?
- A team of lawyers and specialists with deep expertise in the field Investment Law, Enterprise Law, mastering legal regulations and practical procedures for handling documents at competent state agencies.
- Accurate and transparent advice that strictly adheres to current legal regulations, helping investors clearly understand the rights, obligations, and legal requirements of the project, without speculation or subjective interpretation.
- The file is thoroughly reviewed from the outset, minimizing the risk of being asked to make corrections or additions., thereby saving time and costs for businesses.
- Accompanying you throughout the entire process, from the preparation stage and obtaining certificates to the relevant legal procedures during the project's implementation.
The application investment license requires a high degree of accuracy and a thorough understanding of legal regulations. If you are:
- Preparing to invest in Vietnam
- Need to register or adjust the investment registration certificate
- Want to save time and avoid legal risks
Contact FundGo Law today To receive detailed, legally compliant advice that best suits your project.
