SERVICES FOR CONVERTING LOAN CAPITAL INTO CONTRIBUTED CAPITAL IN COMPANIES WITH 100% FOREIGN CAPITAL
With a favorable natural location and diverse and abundant resources, in a short time since the Party and State opened the economy, our country has become one of the destinations attracting foreign investors. Many foreign investors choose to invest in Vietnam in the form of establishing foreign companies. Currently, many foreign companies in Vietnam have come into operation and are growing strongly. Any business, including 100% foreign-owned companies, during operation, always wants to expand the company's market share in the market, so they often call for more capital to contribute to the company. The forms of capital raising and capital contribution are very diverse, including the form of converting loan capital into contributed capital. For companies with 100% foreign capital, converting loan capital into contributed capital means increasing investment capital. Therefore, investors cannot convert loan capital into contributed capital in a 100% foreign-owned company but must carry out this procedure at the competent authority and according to the legal procedure. However, when carrying out this procedure, it is difficult for investors to avoid difficulties and problems because they do not understand all the legal regulations on the issue of converting loan capital into contributed capital in 100% foreign-owned companies. Therefore, when the need arises, many foreign investors have chosen to use the service of converting loan capital into contributed capital in 100% foreign-owned companies instead of doing it themselves. So, what is converting loan capital into contributed capital in a 100% foreign-owned company? Why should businesses choose to use the Loan to Contributed Capital Conversion Service in a 100% foreign-owned company?
Please join us to learn about the service of converting loan capital into contributed capital in 100% foreign-owned companies through the article below:
Photo 1. Services for converting loan capital into contributed capital in 100% foreign-owned companies_Hotline: 0972118764
I. WHAT IS CONVERTING LOAN CAPITAL INTO CONTRIBUTED CAPITAL IN A COMPANY WITH 100% FOREIGN CAPITAL?
Converting loan capital into contributed capital in a company with 100% foreign capital is understood as the conversion of the company's debt into investment capital by a company with 100% foreign capital. This is one of the forms of foreign debt repayment without going through a loan account recognized by Vietnamese law. However, this conversion is only considered legal when the investor carries out the procedures in accordance with the order prescribed by law regarding the conversion of loan capital into contributed capital.
When converting loan capital into contributed capital, the company's capital has been increased. At that time, the investor is forced to carry out procedures to adjust the Investment Registration Certificate regarding the capital content of the investment project to ensure the accuracy of the investment project's information. Because, converting loan capital into contributed capital in a 100% foreign-owned company has changed the content of the previously issued State Investment Registration Certificate.
In addition, when converting loan capital into contributed capital in a company with 100% foreign capital, the investor (borrower) must also notify the bank providing account services so that the bank can promptly monitor and control this company's loans. Along with the written notice, the investor needs to send the bank documents and vouchers related to the conversion of loan capital into contributed capital.
=> See more: What types of periodic reports must be submitted by foreign companies?
II. WHY SHOULD BUSINESSES CHOOSE SERVICES TO CONVERT LOAN CAPITAL INTO CONTRIBUTED CAPITAL IN COMPANIES WITH 100% FOREIGN CAPITAL
For any business in operation, including 100% foreign-owned enterprises in Vietnam, there is a need to call for investment capital. Investors can call for investment capital through many different ways, including converting loan capital into contributed capital. When carrying out procedures to convert loan capital into contributed capital in a 100% foreign-owned company, investors must carry out procedures at a competent authority to legalize this capital conversion.
During the process of converting loan capital into contributed capital in a company with 100% foreign capital, it is difficult for foreign investors to avoid legal problems, so choose the Loan Conversion Service. Becoming a capital contribution in a 100% foreign-owned company is an extremely useful and comprehensive solution for investors. Because this is a service that helps investors be proactive, flexible, and have the most effective solutions for handling legal issues related to investment capital of 100% foreign-owned companies as follows:
1. Foreign investors are advised on the most optimal options
Unlike converting loan capital into contributed capital in a Vietnamese company, foreign investors, when increasing investment capital for a 100% foreign-owned company, must carry out two quite complicated administrative procedures at the same time to comply. formalize this capital transfer.
For the current Vietnamese legal system, legal regulations related to the issue of converting loan capital into contributed capital in 100% foreign-owned companies are stipulated in many different documents such as the Investment Law, Enterprise Law, Tax Law, State Bank Law and system of guiding documents. Therefore, when wanting to carry out the procedure to convert loan capital into contributed capital in a 100% foreign-owned company, it requires foreign investors to invest time in learning and researching laws which regulate this problem. However, most foreign investors have difficulty understanding Vietnamese legal regulations because of language barriers, differences in legal systems and their relatively large workload... so It is difficult for them to carry out the procedure for converting loan capital into contributed capital in a 100% foreign-owned company accurately and quickly.
In addition, when converting loan capital into contributed capital in a company with 100% foreign capital, foreign investors must carry out several additional related procedures such as deposit, registering to change the charter capital of the company. companies with 100% foreign capital. This makes them even more confused, not knowing how to carry out the procedure in the correct order.
If you choose to use the service of converting loan capital into contributed capital in a 100% foreign-owned company, foreign investors will receive consulting and support from a team of experts with specialized knowledge and long-term experience to create optimal solutions corresponding to the needs and conditions of foreign investors. From there, investors can avoid unexpected risks and disadvantages that affect their business activities in Vietnam.
=> See more: What documents need to be prepared for an investment project capital increase application?
2. Shorten time and save costs to complete procedures
With their experience and knowledge, the specialists supporting the implementation of procedures for converting loan capital into contributed capital in 100% foreign-owned companies have grasped and clearly understood each step in the procedure implementation process and always update changes in legal regulations related to this issue. Therefore, they always know how to handle unexpected situations and ensure optimal time and cost of performing this procedure.
So it is certain that when an investor chooses to use the service of converting loan capital into contributed capital in a 100% foreign-owned company, the time and cost to complete the entire procedure will be saved a lot, instead foreign investors perform this procedure by themselves.
3. Ensure information security and complete procedures
For any business in general and 100% foreign-owned business in particular as well as investors, they always need to keep business and personal information confidential when choosing to use legal services. physical. Understanding this, when choosing to use the service of quickly converting loan capital into contributed capital in a 100% foreign-owned company in Vietnam, foreign investors absolutely do not need to worry or worry about this issue. information security issue. Because customer records will always be stored and kept confidential according to customer requests and the terms of the service contract. At the same time, we always try to complete all procedures before handing over to customers.
=> See more: Where to submit application to convert loan into investment capital?
III. SERVICE TO CONVERT LOAN CAPITAL INTO CONTRIBUTED CAPITAL IN 100% FOREIGN CAPITAL COMPANY AT TLK LAW Firm
TLK Law Firm is one of the leading units in the field of providing services for converting loans into capital contributions in 100% foreign-owned companies. With a team of consultants with high expertise and expertise, we ensure the best handling and completion of business issues. The process of implementing the Loan to Contributed Capital Conversion Service in a 100% foreign-owned company at TLK is as follows:
1. Receive customer information;
2. Find the investor's need to convert loan capital into capital contribution in a 100% foreign-owned company;
3. Consulting on legal regulations and drafting documents to adjust the Investment Registration Certificate and documents to notify of conversion of loan capital into contributed capital in accordance with legal regulations;
3. Representing the customer to carry out procedures for adjusting the Investment Registration Certificate at the Department of Planning and Investment; procedures for notifying the conversion of loan capital into contributed capital at the bank providing services in the account and monitoring, urging, and explaining (if any) during the process of processing documents;
4. Receive and hand over the results of the procedure to the customer.
=> See more: Can foreign investors contribute capital to 100% Vietnamese-owned companies?
Photo 2. Services for converting loan capital into contributed capital in 100% foreign-owned companies _Hotline: 0972118764
IV. 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 when 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 best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
V. SOME QUESTIONS RELATED TO SERVICES FOR CONVERTING LOAN CAPITAL INTO CONTRIBUTED CAPITAL IN COMPANIES WITH 100% FOREIGN CAPITAL
Question 1: Does TLK Company provide services in the Southern region?
Reply:
The answer is yes.
TLK is growing stronger and affirming its position. Currently, TLK has 03 offices in Hanoi City, Ho Chi Minh City and Bac Ninh province to meet the legal needs of individuals and organizations in all parts of the country. Therefore, when foreign investors need to convert loan capital into contributed capital in a company with 100% foreign capital, they can completely feel secure in choosing to use the Services for converting loan capital into contributed capital in 100% foreign-owned companies of TLK.
Question 2: Can my company convert loan capital into internal capital contribution?
Reply:
The answer is No.
When converting loan capital into contributed capital, it means that there has been a change in the content of the Investment Registration Certificate. At this time, you must carry out procedures to adjust the Investment Registration Certificate. Failure to notify and adjust the Investment Registration Certificate will be subject to administrative sanctions with a fine ranging from 70,000,000 VND to 100,000,000 VND. At the same time, they were forced to carry out procedures to adjust the Investment Registration Certificate for violations.
TLK Law Firm provides support services in implementing foreign loan registration procedures for 100% foreign-owned companies. Therefore, when the need arises, customers can completely feel secure in choosing to use TLK's legal services regarding foreign loan registration procedures.
=> See more: Conditions for increasing investment capital?
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!
Administrative Procedures Department - TLK Law Firm
WORK PERFORMED BY TLK LAW Firm
1. Advise customers on all legal issues related to social life, individuals, organizations, businesses and investors.
2. Providing to customers, representing all legal services related to social life, individuals, organizations, businesses and investors.
INCENTIVES
1. Support customers in connecting and promoting trade during operations.
2. % discount on service fee when customers use the service for the second time.
3. Free legal advice on corporate law for one year (if you are an organization or business).
4. Care and free legal advice on tax and accounting laws for businesses within one year (if you are an organization or business).
5. Provide an internal business management system (if Customer is an organization or business).
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TLK LAW Firm
- Tel: +(84) 243 2011 747 Hotline: 097 211 8764
- Email: info@tlklawfirm.vn Website: tlklawfirm.vn
