Vietnamese companies wishing to transfer capital to foreigners (understood as non-Vietnamese nationals), shall have to consider on base of the provisions of Vietnamese law and Vietnamese trade agreements signed with the industry. Is it possible for foreigners to transfer capital in Vietnamese companies and allow foreigners to own how much the maximum capital percentage? Lawyers for Enterprise and Foreign Investment provide general provisions of law on transferring capital to foreigners so that client knows clearly.

Investors shall carry out procedures for registration of capital contribution, shareholders or capital contributed to Vietnamese companies if they fall into one of the following cases:

• Foreign investors contributing capital, shareholders or capital contributions to Vietnamese companies operating in conditional business lines and trades applicable to foreign investors;

• The contribution of capital to, shareholders, contributed capital to foreign investors holding 51% or more of the charter capital of the company in Vietnam in the following cases: Increase the ownership ratio of the charter capital of the first from under 51% to 51% upward, and increase the charter capital of foreign investors when the foreign investor owning 51% or more of the charter capital of the Vietnamese company.

In other cases, a Vietnamese company has foreign investors who contribute capital, purchase shares or contributed capital to carry out the procedures for changing members and shareholders at the business registration office in accordance with the provisions of Vietnamese law. Male.

• Form of capital contribution to Vietnamese companies

• Purchase of shares issued for the first time or additional shares of a shareholding company;

• Contributing capital to limited liability companies and partnerships;

• Contributing capital to other Vietnamese companies does not belong to the above two cases.

Form of purchase of shares, capital contribution of Vietnam Company

• Buying shares of a shareholding company from a company or shareholder;

• Purchasing capital contributions from members of limited liability companies to become members of limited liability companies;

• Purchasing capital contributions from capital contributing members in partnerships to become partners in the partnership;

• Purchasing capital contributions from other Vietnamese company members that do not belong to the above three cases.

Dossiers for registration of capital contribution, share purchase or capital contribution:

• The written record of capital contribution, share purchase, capital contribution;

• Copy of identity card, ID card or passport of the foreigner;

Procedures for transferring capital to foreigners:

In cases where foreign investors register for capital contribution, share purchase or capital contribution to companies with 100% Vietnamese capital

Step 1: The investor shall carry out the procedures for registration of capital contribution, share purchase and capital contribution to the 100% Vietnamese capital company at the Investment Registration Office, the Department of Planning and Investment

Records should be prepared

• The written record of capital contribution, share purchase, capital contribution;

• Copy of identity card, ID card or passport of the foreigner;

• Letter of authorization for the organization / individual to carry out procedures.

Where the dossier satisfies the conditions, the provincial / municipal Planning and Investment Service shall notify in writing within 15 days after receiving the complete dossier. In case of failure to meet the conditions, the provincial / municipal Planning and Investment Services shall notify in writing the investors and clearly state the reasons therefor.

Step 2: After the approval of the Investment Department - the Department of Planning and Investment approving the foreign investor to contribute capital, purchase shares or capital contribution, the investor shall carry out the procedures for changing the share The members of the business registration office (the enterprise registration certificate) in accordance with the law at the business registration office of the Department of Planning and Investment.

In cases where foreign investors register for capital contribution, share purchase or capital contribution to a foreign-invested company in Vietnam:

Step 1: The investor submits the application file to the Investment Department, the Department of Planning and Investment where the economic organization is headquartered to carry out procedures for registration of capital contribution, share purchase, capital contribution to the initial capital company, foreign investor.

Step 2: After receiving the written notice of the Department of Planning and Investment approving the foreign investor to contribute capital, purchase shares or capital contribution. If the company has not separated the investment certificate into the investment registration certificate and the enterprise registration certificate, the investor shall carry out the procedures for separation and issue of the enterprise registration certificate, at the Business Registration Office - Department of Planning and Investment.

Step 3: After splitting the investment registration certificate and the enterprise registration certificate, the investor shall adjust the investment registration certificate at the investment licensing agency.

Step 4: Apply for a business license for the right to import and export.

Note: Payment of transfer of capital contribution to foreigners

Pursuant to Circular No. 19/2014 / TT-NHNN, when foreign investors contribute capital to a Vietnamese company, they must open a foreign direct investment capital account at a commercial bank or a branch of a foreign bank trading and providing foreign exchange services in Vietnam; Can be opened in Vietnamese dong or in foreign currency, depending on the currency used to contribute capital to the business.

Lawyers for Enterprise and Foreign Investment