CONDITIONS FOR INCREASING INVESTMENT CAPITAL?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: I am implementing an investment project in Da Nang. With the growing market trend, in order to expand my business scope, I want to increase my investment capital. However, I do not clearly understand the regulations on the conditions for increasing investment capital? Looking forward to your company's answer. Thank you!
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Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
2. Decree No. 31/2021/ND-CP issued by the Government on March 26, 2021 detailing and guiding the implementation of a number of articles of the Investment Law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Increasing investment capital is an essential need of investors. Increasing investment capital is aimed at expanding production scale and mobilizing more resources to invest in enterprise projects. When there is a change in investment capital, specifically an increase in capital, what conditions do investors need to meet? This is a question that many customers sent to TLK Law Firm.
Therefore, through this article, we will answer your questions about "Conditions for increasing investment capital? ”.
Photo 1. Conditions for increasing investment capital?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO CONDITIONS FOR INCREASING INVESTMENT CAPITAL
1. What is investment capital? What is increased investment capital?
Pursuant to the Investment Law 2020, investment capital is money and other assets according to the provisions of civil law and international treaties to which the Socialist Republic of Vietnam is a member to carry out business investment activities. Increasing investment capital is an activity in which economic organizations increase the amount of investment capital compared to the initial capital recorded in the investment registration certificate.
2. Conditions for increasing investment capital
Pursuant to Decree No. 29/2021/ND-CP, in order to increase investment capital, the company must meet the conditions regarding when carrying out procedures to adjust investment capital increase, investors should pay attention as follows:
(1) Procedures for adjusting the investment registration certificate must be carried out according to the provisions of Decree No. 29/2021/ND-CP;
(2) The company must explain the appropriateness of the total new investment capital in the investment project proposal;
(3) The company must ensure the feasibility of the project, ensure correct and complete implementation of the contents recorded on the investment registration certificate. In case it cannot be done correctly, further adjustments to those contents must be made along with increasing investment capital;
(4) The company must explain the investor's financial capacity in case of registering to increase total investment capital;
(5) Being approved by the investment management agency to increase investment capital is demonstrated through the issuance of an adjusted Investment Registration Certificate.
Thus, to be eligible to increase investment capital, the company must meet all conditions for increasing investment capital according to the provisions of law and make adjustments to the investment registration certificate.
3. Forms of incentives in investment activities
Pursuant to the Investment Law 2020, when participating in investment activities, investors are entitled to preferential policies by the Vietnamese State in the following forms:
(1) Corporate income tax incentives include:
- Apply a lower corporate income tax rate than the normal tax rate for a term or the entire duration of the investment project;
- Tax exemption, tax reduction and other incentives according to the provisions of law on corporate income tax.
(2) Exemption from import tax for goods imported to create fixed assets; raw materials, supplies, and components imported for production according to the provisions of law on export tax and import tax;
(3) Exemption or reduction of land use fees, land rent, land use tax;
(4) Accelerated depreciation, increasing deductible expenses when calculating taxable income.
Thus, with the above incentives as prescribed by law, investors can more easily and conveniently participate in investment activities in Vietnam.
=> See more: Can foreign investors contribute capital to 100% Vietnamese-owned companies?
Photo 2. Conditions for increasing investment capital?_Hotline: 0972118764
II. SUMMARY OF THE ANSWER SECTION: CONDITIONS FOR INCREASING INVESTMENT CAPITAL?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
To increase investment capital, investors need to meet the conditions specified in the Investment Law 2020, specifically as follows:
1. Meet the conditions and carry out procedures to change the investment registration certificate;
2. Explain and ensure the feasibility and financial capacity of the investor for the project;
3. Be approved by a competent state agency to increase investment capital through the issuance of an adjusted investment registration certificate.
=> See more: What is required to adjust the investment certificate to increase capital?
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time while the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the company providing the best legal services on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
IV. SOME QUESTIONS RELATED TO CONDITIONS FOR INCREASING INVESTMENT CAPITAL
Question 1: When adjusting to increase a project's investment capital, do investors have to pay additional deposits?
Reply:
Pursuant to Decree No. 31/2021/ND-CP, in case of adjusting to increase the project's investment capital, the investor must pay an additional deposit amount or supplement a deposit guarantee from the corresponding credit institution with increased investment capital as prescribed in the decision approving the adjustment of investment policies and the adjusted Investment Registration Certificate. In case 50% of the deposit paid before adjustment has been refunded, the investor only has to pay an amount equal to 50% of the additional deposit.
Question 2: When increasing investment capital abroad, what conditions must be met?
Reply:
Pursuant to Decree No. 31/2021/ND-CP, when increasing investment capital abroad for each specific industry, the following conditions must be met:
(1) For banking, insurance and securities industries and professions according to the provisions of the Investment Law 2020, investors must meet the conditions prescribed by law in the fields of banking, insurance and securities. contracted and approved in writing by a competent authority;
(2) For journalism, radio and television industries and occupations prescribed by the Investment Law 2020, investors are organizations that have been licensed to operate press, radio and television activities in Vietnam and approved by the Ministry of Industry and Trade;
(3) For real estate business lines regulated by the Investment Law 2020, the investor is an enterprise established under the Enterprise Law.
Thus, to increase investment capital abroad, investors with investment projects must meet the above conditions according to the provisions of law.
Question 3: Which assets that foreign investors invest in Vietnam are transferred abroad?
Reply:
Pursuant to the Investment Law 2020, after fully fulfilling financial obligations to the State of Vietnam according to the provisions of law, foreign investors are allowed to transfer abroad the following assets:
(1) Investment capital, investment liquidation;
(2) Income from business investment activities;
(3) Money and other assets are legally owned by the investor.
Thus, the above types of assets of foreign investors will be transferred abroad when full financial obligations are fulfilled.
=> See more: Ways of increasing investment capital? In what ways do investors contribute capital to Vietnam?
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
Thank you very much!
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