Consulting services on forms of establishing FDI companies in Vietnam

Establishing FDI companies in Vietnam is one of the popular investment methods among foreign investors in the Vietnamese market. Choosing the right form of establishment and understanding legal regulations helps foreign businesses access the market effectively, while avoiding legal risks. Below is a detailed analysis of forms of establishing FDI companies and consulting services in Long Phan.

Forms of establishing FDI companies in Vietnam

According to the Law on Investment 2020, foreign investors (FDI) have many options when investing in Vietnam through establishing businesses. The main forms include:

Establishment of a new economic organization

This is the most common form when foreign investors decide to invest directly in Vietnam. Investors can establish a one-member LLC, a LLC with two or more members, a joint stock company, or a partnership. In particular, the capital ownership level of foreign investors can be up to 100% depending on the investment field and Vietnamese legal regulations.

• Limited Company: Foreign investors can choose to establish a LLC with equity from 1 to 100%. This type is suitable for businesses that want simple management and low risk.
• Joint stock company: This type allows for easy mobilization of capital through the issuance of shares, suitable for large projects that require the ability to mobilize capital flexibly.
• Partnership company: This type is often suitable for small businesses, requiring unlimited liability of partners in managing and operating the company.

Contribute capital or purchase shares or capital contributions in Vietnamese enterprises

Foreign investors can choose to buy back capital contributions and shares of enterprises that have business registration licenses in Vietnam. This form is faster and more convenient than establishing a new business from scratch.

According to Article 25 of the Law on Investment 2020, investors can follow the following methods:

• Buy shares issued for the first time from joint stock companies.
• Contribute capital to a limited liability company or partnership.
• Buyback capital contributions from current members of limited liability companies, partnerships or other economic organizations.

Business cooperation contract (BCC)

The form of a business cooperation contract (BCC) does not require the establishment of a new legal entity. According to Article 27 of the Law on Investment 2020, domestic and foreign investors can sign BCC contracts to cooperate in business and share profits and products. This form is flexible, suitable for short-term projects or does not require the establishment of an economic organization.

Implement investment projects

Foreign investors can carry out investment projects through establishing businesses or other forms of cooperation. This is especially common in sectors such as construction, energy, and real estate, where cooperation with stakeholders or the State is required.

Some notes when choosing a form of investment in Vietnam

When choosing the form of establishing FDI companies in Vietnam, investors need to note a number of important legal factors to ensure compliance with regulations:

Market access conditions for foreign investors

According to Article 9 of the Law on Investment 2020, there are industries that foreign investors cannot access or can only access under specific conditions. For example, some fields such as national security and defense and public services are sectors with limited access to foreign investors. Before investing, customers need to check the list of industries with limited market access.

Legal procedures for capital contribution

Foreign investors must open an investment capital account to carry out capital contribution transactions and transfer profits back to their country. Capital contributions must be made on time and according to the provisions of the Investment Registration Certificate (IRC). Otherwise, the investor will not be able to continue contributing capital after the term expires.

Investment reporting and monitoring

FDI enterprises in Vietnam must fulfill periodic investment reporting obligations to regulatory agencies. Businesses that do not comply with reporting regulations will be punished and may have difficulty adjusting their investment licenses.

Why should you use consulting services on how to establish FDI companies in Long Phan?

Establishing FDI companies in Vietnam, regardless of form, requires an in-depth understanding of legal regulations and complex legal procedures. Here are the reasons why using consulting services is necessary:

Ensure legal compliance

Laws related to foreign investment in Vietnam are regularly updated. Using our service, you will have a team of experts to support you, ensuring that all procedures and documents fully comply with current regulations, avoiding legal risks that may arise.

Save time and effort

Procedures for establishing FDI companies are often complicated, including many steps from application submission, and license processing to investment reporting. Doing it yourself can take a long time and cause difficulties for investors. Our services will help customers save time and focus on business activities.

Comprehensive support from A-Z

Consulting services at Long Phan not only stop at establishing a company but also support businesses in procedures after establishment, such as investment reports, financial audits and arising legal issues during operation.

Consulting services on forms of establishing FDI companies in Long Phan

At Long Phan, we will provide comprehensive consulting services on forms of establishing FDI companies, helping investors access the Vietnamese market easily and effectively.

Services we provide include but are not limited to the following services:

• Consulting on appropriate investment forms: We will analyze and offer the most suitable investment solutions for each customer based on size and business field.
• Drafting legal documents: Long Phan will prepare all necessary documents and records, from application for an investment license, and Enterprise Registration Certificate (ERC) to business cooperation contracts.
• Representative to submit documents and monitor progress: We will represent customers to submit documents at state agencies and monitor the resolution process, and helping to ensure that procedures are carried out quickly.
• Investment reporting support: After establishing the company, Long Phan will support customers in completing periodic investment reports according to regulations.

Our commitment

• Professional and dedicated: Long Phan’s team of consultants has extensive experience and is always ready to support customers in all legal issues related to foreign investment.
• Efficiency and accuracy: We are committed to providing quick services, ensuring the highest legality, helping customers avoid risks and troubles.
• Transparent costs: Long Phan always provides clear quotes, with no hidden costs, helping customers feel secure while using the service.

Choosing the right form of establishing an FDI company will help investors access the Vietnamese market effectively and in compliance with the law. If you need detailed advice, please contact Long Phan via the hotline 0906735386 for dedicated and professional support.