Cases where it is necessary to adjust the investment registration certificate

Article overview

Adjusting the investment registration certificate is a step that helps businesses adapt to changes in capital scale, field of operation, or investment location. Making timely adjustments not only helps companies to comply with the law but also optimizes business operations and captures market opportunities. In the following article, Long Phan will analyze in detail the cases, procedures and notes when making adjustments to the investment registration certificate.

Procedures for adjusting investment registration certificates
Procedures for adjusting investment registration certificates

When is it necessary to make adjustments to the investment registration certificate?

According to Article 41 of the Law on Investment 2020, investors need to adjust the certificate in the following cases:

1. During the implementation of an investment project, investors need to adjust goals, transfer part or all of the project, merge or split the project, and use assets to contribute capital.

2. When adjusting the investment project changes the content of the Certificate.

3. Investors whose investment projects have had their investment policies approved must carry out procedures to approve investment policy adjustments if they fall into one of the following cases:

  • Change the objectives specified in the investment policy approval document; additional targets subject to investment policy approval;
  • Change the scale of land area used by more than 10% or more than 30 hectares, change the investment location;
  • Changing the total investment capital by 20% or more changes the scale of the investment project;
  • Extending the progress of investment project implementation where the total project investment time exceeds 12 months compared to the investment project implementation schedule specified in the initial investment policy approval document;
  • Adjusting the operating terms of investment projects;
  • Technological changes have been evaluated and consulted during the investment policy approval process;
  • Changing the investor of an investment project whose investment policy is approved at the same time as approving the investor before the project is exploited and operated or changing conditions for investors (if any).

4. For investment projects with approved investment policies, investors are not allowed to adjust the investment project implementation schedule by more than 24 months compared to the investment project implementation schedule specified in the investment project approval document. First-time investment, except in one of the following cases:

  • To overcome consequences in cases of force majeure according to the provisions of civil law and land law;
  • Adjusting the progress of investment projects due to investors being slow to be allocated land, leased land, or allowed to change land use purposes by the State;
  • Adjust the progress of investment project implementation at the request of state management agencies or state agencies that are slow in implementing administrative procedures;
  • Adjusting investment projects due to changes in planning by state agencies;
  • Change the objectives specified in the investment policy approval document; additional targets subject to investment policy approval;
  • Increasing total investment capital by 20% or more changes the scale of investment projects.
Circumstances must be adjusted
Circumstances must be adjusted

Why is it necessary to make adjustments to the investment registration certificate?

Adjusting the investment registration certificate plays an important role in project management. This helps ensure the project’s legality and compliance with current regulations. Here are the main reasons:

  • Ensuring legality: Adjusting the certificate helps investors comply with legal regulations, avoiding violations that can lead to legal consequences or revocation of the certificate.
  • Suitable for project reality: During project implementation, changes in goals, scale, or investment plans may arise. Adjustments help accurately reflect the actual situation and new project plans.
  • Enhance competitiveness: Updating the certificate allows investors to flexibly adjust strategies, optimize resources and improve investment efficiency, thereby enhancing competitiveness in the market.
  • Meet the requirements of regulatory agencies: In some cases, adjusting the certificate is a request from state agencies during the appraisal and inspection process, to ensure that the project is operating in accordance with regulations approved goals and objectives.
  • Risk management: Adjustments help investors better manage risks that may arise during project implementation, such as changes in technology, capital sources, or partners.
  • Changing market needs: When the market or business environment changes, adjusting certificates helps investors quickly adapt and adjust investment strategies to suit new needs.
  • Support in mobilizing capital: When there is a change in investment capital, adjusting the certificate can help create more favorable conditions in mobilizing capital from investors or financial institutions.

Procedures for adjusting investment certificates

Document components need to be prepared

According to the provisions of Clause 1, Article 44 of Decree 31/2021/ND-CP, the application file for adjusting the investment registration certificate includes the following documents:

  • A document requesting adjustment of the investment project;
  • Report on the implementation of investment projects up to the time of adjustment;
  • The investor’s decision on adjusting the investment project for institutional investors;
  • Explain or provide documents related to the adjustment of the contents specified in Points b, c, d, đ, e, g and h, Clause 1, Article 33 of the Law on Investment 2020.

Execution order

The process of adjusting the investment registration certificate is carried out according to the following steps:

  • Step 1: The investor submits an application to adjust the investment registration certificate at the Investment Registration Management Agency. Applications can be submitted in person, by post or online.
  • Step 2: The investment registration agency receives the application and checks its validity. If the dossier is incomplete, this agency will request additional information.
  • Step 3: After receiving all valid documents, the Investment Registration Authority considers adjusting the investment registration certificate.
  • Step 4: If approved, the Investment Registration Authority will issue an adjusted investment registration certificate to the investor. In case of refusal, this agency must notify in writing and clearly state the reason.

The order of implementation of adjusting the investment registration certificate depends on the authority to approve investment policies according to the provisions of Decree 31/2021/ND-CP. There will be certain changes in procedures, and application processing deadlines.

CSPL: Article 44, Article 45, Article 46, Article 47 of Decree 31/2021/ND-CP.

Procedures for adjusting certificates
Procedures for adjusting certificates

Some issues to keep in mind when making adjustments to the investment registration certificate

When making adjustments to the Investment Registration Certificate, investors should note some important points as follows:

  • Time to adjust: Determine the right time to adjust the certificate to avoid adjusting too early or too late, which can affect the project’s progress.
  • Scope of adjustment: Be clear about the content that needs to be adjusted and ensure changes are consistent with legal regulations. Do not adjust unnecessary content.
  • Consistency: Adjusted contents must be consistent with other legal regulations such as the Land Law, Construction Law and Environmental Protection Law, to avoid legal conflicts.
  • Prove capacity: In order to increase investment capital or expand project scale, investors need to demonstrate financial and technical capacity to implement the changes.
  • Comply with deadlines: Investors need to comply with the prescribed deadlines during the adjustment process to ensure project progress and minimize possible legal risks.

Consulting and support services on making adjustments to investment certificates at Long Phan

With Long Phan’s team of experts with many years of experience, we provide professional consulting services on adjusting investment registration certificates. The services we provide include:

  • Consulting on legal regulations related to adjusting Investment Certificates;
  • Support customers in drafting and preparing all necessary documents;
  • Analyze and evaluate the need to adjust the Investment Certificate, and determine the contents that need to be adjusted in accordance with project reality.
  • Specific advice on cases that require adjustment, such as changing goals, project scale, or increasing investment capital.
  • Support customers in the application process at the competent authority, ensuring the procedure goes smoothly.
  • Monitor the process of processing adjustment documents, support customers in solving problems that arise during the appraisal process.
  • Support customers in evaluating the financial and technical capacity needed to adjust investment capital or expand project scale.
  • Consulting and supporting customers in resolving disputes related to adjusting Investment Certificates.

Adjusting the investment registration certificate is an important procedure, ensuring the project complies with the law and develops effectively. Customers need to pay attention to the application requirements, implementation order and notes stated in the article. For professional support on this procedure, please contact Long Phan immediately via Hotline: 0906735386. We will provide the optimal solution for your project.