Consulting services on issues of splitting investment projects

Article overview

Splitting investment projects brings many benefits to investors in optimizing resources and effective management. This process helps allocate capital appropriately, increase operating flexibility and expand cooperation opportunities with new partners. The following article by Long Phan will provide detailed information on the conditions and procedures for splitting investment projects quickly and effectively.

Instructions for splitting investment projects
Instructions for splitting investment projects

Is it possible to split investment projects?

Pursuant to Clause 1, Article 50 of Decree 31/2021/ND-CP, investors have the right to adjust investment projects by dividing or separating the ongoing project into two or more projects. This regulation creates a legal basis for splitting investment projects.

Splitting investment projects is a legal right of investors. This process allows for flexible project restructuring, consistent with business strategy. Separation can help optimize management and increase resource efficiency.

However, the separation process needs to comply with relevant legal regulations. Investors must ensure that projects after separation still fully meet investment conditions as prescribed.

Conditions for splitting investment projects

According to Clause 2, Article 50 of Decree 31/2021/ND-CP, the division of investment projects must meet the following conditions:

  • Must meet land use conditions as prescribed by land law, business investment conditions (if any) and other conditions as prescribed by law.
  • The investor’s conditions (if any) must not be changed in the Investment Policy Approval Decision or Investment Registration Certificate before dividing, separating or merging the investment project.

These conditions are intended to ensure the legality and effectiveness of the separation process. Investors need to carefully consider their ability to meet requirements before proceeding with the procedure.

Conditions to be met when splitting investment projects
Conditions to be met when splitting investment projects

Procedures for splitting investment projects

Prepared documents

Pursuant to Clause 3, Article 50 of Decree 31/2021/ND-CP, investment project separation documents are divided into two cases as follows:

Case 1: For investment projects whose investment policies have been approved.

Case 2: For investment projects that have been granted an Investment Registration Certificate and are not subject to investment policy approval.

Specifically, when falling into one of the above cases. Documents for division and separation of investment projects include:

  • A document requesting adjustment of investment project;
  • Report on the implementation of investment projects up to the time of division, separation or merger of investment projects;
  • Investor’s decision on division, separation, merger of investment projects or other documents with equivalent legal value;
  • Documents on the investor’s legal status;
  • Copy of Investment Registration Certificate or Investment Policy Approval Decision (if any);
  • Copy of Investor Approval Decision (if any);
  • 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 Investment Law (if any);

Implementation steps

Pursuant to Article 50 of Decree 31/2021/ND-CP, the process of implementing investment project separation procedures is divided into the following cases:

Case 1: For investment projects whose investment policies have been approved

Legal basis: Point a Clause 3 Article 50 Decree 31/2021/ND-CP

Step 1: Submit application

Investors submit documents according to regulations to the competent authority. Note, that documents will be submitted as follows:

  • 08 sets of documents for the Ministry of Planning and Investment for projects under the investment policy approval authority of the National Assembly;
  • 04 sets of documents for the Investment Registration Authority for projects under the investment policy approval authority of the Prime Minister or Provincial People’s Committee.

Step 2: Appraisal of documents

  • Competent agencies consider conditions for dividing and separating investment projects according to the provisions of Clause 2, Article 50 of Decree 31/2021/ND-CP.
  • Carry out procedures for adjusting investment projects according to the corresponding regulations in Articles 44, 45 and 46 of Decree 31/2021/ND-CP.

Step 3: Issue a decision and announce the results

  • The competent authority issues the Decision approving the adjustment of investment policy and the Decision approving the adjustment of investment policy is sent to the Investment Registration Authority and the investor.

Case 2: For investment projects that have been granted an Investment Registration Certificate and are not subject to investment policy approval

Legal basis: Point b Clause 3 Article 50 Decree 31/2021/ND-CP

Step 1: Submit application

  • The investor submits 01 set of documents to the Investment Registration Authority.

Step 2: Appraisal of documents

  • The investment registration agency considers conditions for dividing and separating investment projects according to the provisions of Clause 2, Article 50 of Decree 31/2021/ND-CP.
  • Carry out procedures for adjusting investment projects according to the provisions of Article 47 of Decree 31/2021/ND-CP.

Step 3: Issue the adjusted Investment Registration Certificate

The investment registration agency issues an adjusted Investment Registration Certificate to the investor.

Consulting on issues of dividing investment projects effectively and accurately at Long Phan

Long Phan is a unit specializing in providing consulting services in the field of investment. With Long Phan’s support, investors can rest assured to split projects according to regulations, optimize investment efficiency and avoid legal risks. Main consulting and support services at Long Phan include:

  • Consulting on evaluating the feasibility of splitting investment projects
  • Support in preparing investment project separation documents
  • Instructions on the order and procedures for splitting investment projects for each specific case
  • Investor representatives work with competent state agencies
  • Consulting on resolving legal problems during the project separation process.
Consulting and support services for splitting investment projects in Long Phan
Consulting and support services for splitting investment projects in Long Phan

Splitting investment projects opens up new opportunities for businesses to ensure the investment project operation process takes place effectively. You should choose a professional consulting unit to receive support quickly and in compliance with legal regulations. Let Long Phan become a reliable partner, contributing to the success of your investment project. Contact Long Phan immediately via hotline 0906735386 for detailed advice and optimal solutions, consistent with your business strategy.