Procedure of applying for investment license in Ho Chi Minh City

With the attraction of a leading economic center in Vietnam, Ho Chi Minh City is currently attracting a lot of foreign investors from countries in the region and around the world. Applying for an Investment License is the first step that foreign investors must do when investing in Ho Chi Minh City.

CIS Law Firm will explain in detail all the steps on how to apply for an Investment License in Ho Chi Minh City in the article below.

1. What is an Investment License?

Investment License (also known as Investment Registration Certificate) is a document recording the Investors’ registration information about their investment projects and issued to the Investors by the competent authorities of Vietnam when the investors completely meet the conditions prescribed by Vietnamese laws.

investment-license
Investment license

2. Conditions for being granted Investment License in Ho Chi Minh City.

To be granted an Investment License in Ho Chi Minh City, the investors need to meet the following conditions:

  • Investment projects not in business lines banned from business investment;
  • Having an implementation location of investment project in Ho Chi Minh City;
  • Investment projects in accordance with the planning;
  • Satisfying the conditions on investment rate per land area and number of employees (if any);
  • Meeting market access conditions for foreign investors.

3. Application for Investment License.

Application for an Investment License includes:

  • A written request for implementation of the investment project;
  • Copy of the identity card or passport for the investors being an individual; copy of Business Registration Certificate/ Certificate of Establishment/ Operation License for institutional investors;
  • Proposal of investment project includes the following contents: Investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, investment location, term, and schedule, labor demand, proposal for investment incentives, assessment of the project’s socio-economic impact and efficiency;
  • Copy of one of the following documents: Financial statement of the last 02 (two) years of the Investors; Commitment to financial support of the parent company; Commitment to financial support of financial institutions; Guarantee on the financial capacity of the Investors; Documents explaining the financial capacity of the Investors.
  • Proposal of land use demand; In case the projects do not request the State to allocate or lease land or permit the change of land use purpose, copy of the location lease agreement or other documents certifying that the Investors have the right to use the site for implementation of the project shall be submitted.
  • Explanation of technology use for projects using technology on the list of technology restricted from transfer in accordance with the law on technology transfer, including the following contents: technology name, technology origin, technological process diagram; main technical parameters, use status of main machinery, equipment and technological lines;
  • BCC contract for investment projects in the form of BCC contract.

4. Investment License-issuing agencies in Ho Chi Minh City.

Depending on the location of the project, the Investment License-issuing agencies in Ho Chi Minh City will be different, specifically:

  • For investment projects outside industrial parks, export processing zones, high-tech zones, economic zones, you must submit your application at the Department of Planning and Investment of Ho Chi Minh City, address: 32 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City;
  • For investment projects in high-tech zones, you should submit your application at the Management Board of Hi-tech Parks of Ho Chi Minh City, address: D1 Street, Hi-Tech Park, Tan Phu Ward, Thu Duc City, Ho Chi Minh City;
  • For investment projects in industrial parks, export processing zones, economic zones, you must submit your application at the Management Board of Industrial and Export Processing Zones of Ho Chi Minh City, address: 35 Nguyen Binh Khiem, Ward Da Kao, District 1, Ho Chi Minh City

5. Term to issue an Investment License.

According to regulations, the time to issue an Investment License is 15 working days from the date the competent state agency receives a complete and valid set of documents.

6. Fees and charges for issuance of Investment License in Ho Chi Minh City.

Currently, the procedure for granting an investment license is specified in the Law on Investment 2020 and related guiding documents without any regulations on fees and charges. Therefore, investors when applying for an Investment License in Ho Chi Minh City do not have to pay state fees and charges.

7. Which tasks must be done by Investors after being granted Investment License?

After being granted an investment license, unless the investors invest in the form of a BCC contract, the investors must perform the following tasks:

  1. Establishment of a company.

This is the next task after being granted an Investment License, the Investors will carry out the procedure to establish a company, this procedure is called registration of business establishment.

As a result of this procedure, the investors will be issued with an Enterprise Registration Certificate (formerly known as a Business Registration Certificate).

  1. Seal engraving

After being granted the Enterprise Registration Certificate, the company will engrave its seal for use in the Company’s transactions.

  1. Initial tax declaration and task related to tax, accounting

For the initial tax declaration, you first need to know: The deadline for submitting the initial tax registration application will be the last day of the month indicated on the Enterprise Registration Certificate in case your company starts production and business right after receiving the Certificate; or within 30 days from the date stated on the Enterprise Registration Certificate in case your Company has received the Certificate but has not yet come into operation.

Next, you declare and pay license tax, buy a digital signature, open a bank account, register for electronic tax payment and apply for a Sub-license if the Company’s business line is required to have a Sub-license.

  1. Open a bank account

After establishing the Company, the Investor needs to open a direct investment capital account to transfer the investment capital and open a current account of the Company.

Previously, the Company had to carry out procedures for notifying the bank account number to the Department of Planning and Investment and the Tax Administration. However, the new regulation has abolished this procedure. Accordingly, at present, the Companies do not have to carry out the procedure to notify the bank account number.

  1. Register for electronic tax payment

Electronic tax payment is a service that allows taxpayers to make an electronic money payment slip on the tax authority’s web portal and receive instant confirmation of the results of the tax payment transaction by the commercial bank.

Electronic tax payment is very convenient and fast, bringing many benefits to the Company. Therefore, after the establishment of the Company, the registration procedure for electronic tax payment is carried out.

  1. Apply for a business license.

According to current regulations, if your company (foreign-owned company) operates in certain fields, it must apply for a Sub-license (also known as Business License).

8. Service of applying for Investment License in Ho Chi Minh City by CIS Law Firm.

With a wealth of experience in the field of investment consulting, CIS Law Firm has supported many foreign investors from many different countries to invest successfully in Vietnam.

CIS Law Firm will assist clients in the following tasks:

  • Consulting on conditions, dossiers and procedures for applying for, adjusting or changing the investment license; contributing capital, buying shares; establishment of a representative office/branch of foreign companies;
  • Complete and quick drafting of documents;
  • Representing investors to carry out procedures at competent state agencies;
  • Monitoring the processing of dossiers by competent state agencies; explaining to state agencies on issues related to dossiers;
  • Guiding the investors to carry out legal procedures arising after carrying out the procedures;
  • Consulting, carrying out procedures for applying for new licenses and adjusting relevant sub-licenses;
  • Supporting for legal issues arising in the course of business activities for investors.

Above is the detailed guide on the latest procedure for applying for the Investment License in Ho Chi Minh City. If you have problems in the process of applying for Investment License in Ho Chi Minh City, or you have any unclear contents or need legal assistance, please immediately contact lawyer of CIS Law Firm with the following information:

LEGAL ENTERPRISE DEPARTMENT – CIS LAW FIRM

109 Hoang Sa, Da Kao Ward, District 1, City. Ho Chi Minh
Tel: 028.3911.8581 – 3911.8582 – Hotline: 0916.568.101
Email: info@cis.vn