Local partner recruitment Vietnam
What are the procedures for establishing a joint venture company with foreign investment? What are the conditions for establishing Joint venture opportunities Vietnam? Let S4B Vietnam answer these questions in this article.
1. Joint venture company formation services in Vietnam – Legal consulting support – Representation in carrying out procedures.
A joint venture company is a company established in Vietnam by two or more parties in cooperation, based on a joint venture contract between a foreign company and a Vietnamese company.
According to the law, a joint venture company is established in the form of a limited liability company or a joint stock company (if there are more than 3 investors). Each joint venture partner is liable only to the extent of their committed capital contribution to the company’s charter capital.
A joint venture company has legal personality under Vietnamese law and is established and operates from the date of issuance of the Investment Registration Certificate and the Business Registration Certificate.
Within the scope of services provided by Quoc Luat Company, we will advise on all legal issues related to this form of investment and directly represent you in carrying out all licensing procedures as required by law.
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2. Conditions for Establishing a Joint Venture Company
2.1. Conditions Regarding the Entity Establishing a Joint Venture
Individuals and organizations establishing a foreign-owned company must meet the following conditions:
Individual investors: Must have full civil capacity, not be serving a prison sentence, or subject to other administrative penalties as prescribed;
Foreign investors who are organizations: Must have legal personality, be legally established, and still be operating at the time of investment cooperation.
2.2. Conditions Regarding Capital for Establishing a Joint Venture Company
Each joint venture partner shall be legally responsible within the scope of their committed capital contribution to the company’s registered capital and ensure that their financial capacity is commensurate with the committed investment capital in the project;
The registered capital of the joint venture company must be at least 30% of the total investment capital;
For investment projects in areas encouraged for business, the minimum capital requirement may be lower but must not exceed 20% of the total investment capital and must be approved by the licensing authority;
Depending on the business sector, the joint venture company must register a legal capital appropriate to its scale and in accordance with Vietnamese law.
2.3. Regarding business sectors
The joint venture company may only register business sectors permitted by Vietnamese law, and may not register sectors on the list of restricted market access sectors for foreign investors as stipulated in Decree No. 31/2021/ND-CP.
In addition to the above conditions, when establishing Local partner recruitment Vietnam, other basic conditions as prescribed by the Enterprise Law must also be ensured.
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3. What documents are required for a foreign organization to establish a joint venture with a Vietnamese enterprise?
Depending on the method of establishment, the foreign organization needs to prepare: a copy of the business registration certificate; a copy of the ID card/citizen identification card/passport of the representative of the capital contribution for the organization.
In addition, if establishing through direct investment, the foreign organization also needs to prepare audited financial statements for the most recent year or a document verifying the bank account balance of the investor.
4. How many ways are there to establish a company in the form of a joint venture?
There are two ways:
Method 1: Establishing a joint venture company directly from the capital of the foreign investor (the joint venture company will be granted an investment certificate first, then proceed with the application for a business registration certificate);
Method 2: Establishing a joint venture company through capital contribution, purchase of shares, or capital contribution from a Vietnamese company.
The above is information provided by S4B Vietnam regarding Vietnam incorporation services. For further details and to utilize our services, please contact S4B Vietnam for the best possible support.
S4B Vietnam
- Address: Unit 701B – 701C, Tower A, Handi Resco Towers, 521 Kim Ma Street, Giang Vo Ward, Hanoi, Vietnam
- Tel: +84 24 3974 4181
- Email: service@s4b.com.vn
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