As Law on Investment 2020, invertors can invest by many forms such as investment to establish economic entities; investment to contribute capital; implementation of investment projects; investment in the form of BCC (Business Cooporation Contract); new forms of investment and new types of economic entities according to regulations of the Government
Domestic investors, when implementing investment in the form of establishment of economic entities, must comply with the Law on Enterprises and other laws corresponding to each type of business entity. Difference from domestic investors, before setting up economic entities, foreign investors must establish investment projects. It means that they must follow the procedures for issuance of an Investment Registration Certificate and satify several regulations on business lines, the charter capital ownership ratio, investment form, scope of investment, capacity of the investor and partners participating in the investment activities…
Implementing investment in the form of capital contribution, investors can purchase initially or additionally issued shares of joint stock companies; contribute capital to limited liability companies, partnership companies or other economic entities. Investors also may purchase shares or stakes of economic entities in the following forms: purchase shares of a joint-stock company from such company or its shareholders, purchase stakes from members of a limited liability company; purchase stakes from a capital contributing member of a partnership company or purchase stakes from members of other economic entities.
Investment in the form of a BCC is to perform a contract which is signed by investors for the purpose of coorperating in business, distributing of profits or products among investors without establishment of an economic entity. BCC may be signed by domestic investors and shall be implemented in accordance with the civil law; be signed by foreign investors or between domestic investors and foreign investors and shall be implemented under the procedures for issuance investment registration certificate according to Law on Investment.
In addition to the above investment forms, difference from Law on Investment 2014 which specifically provided in five investment forms, Law on Investment 2020 also anticipates “new forms of investment and new types of economic entities according to regulations of the Government”. This provision is signficant advancement in the development of laws to adapt to the continuous development and fluctuations of the economy. This shows the principle of “openness” in law-buiding that proves Vietnamese Government is always ready to welcome new investment forms or economic entities in the future with the favorable and more incentives investment environment that is increasingly perfect to approach advanced investment models of the world.
Phong & Partners provides full consulting services and implements procedures regarding investment activities of all domestic and foreign investors.
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PHONG & PARTNERS LAW FIRM
Add: 6th Floor, Thanh Loi Building, 249 Nguyen Van Linh street, Danang City - 0905.102425
Son Tra Branch: 01 Dong Giang street, Danang City - 0905.205624
Lien Chieu Branch: 21 Truong Van Da street, Danang City - 0901.955099
Ngu Hanh Son Branch: 03 Chu Cam Phong street, Danang City - 0905.579269
Email: phongpartnerslaw@gmail.com
Web: https://phong-partners.com/
