WAYS OF INCREASING INVESTMENT CAPITAL? IN WHAT WAYS DO INVESTORS CONTRIBUTE CAPITAL TO VIETNAM?
QUESTION
Dear TLK Law Firm, I currently have a question and hope to hear from you as follows: I am an American citizen who wants to contribute capital to invest in Vietnam's real estate market. However, I don't know what capital investment methods there are and how can I increase my investment capital after contributing capital? Looking forward to your company's answer. Thank you!
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1. Consulting on establishing investment projects quickly, professionally and comprehensively
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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
Currently, foreign investors coming to Vietnam invest more and more in different forms of investment capital contribution. It can be seen that with the preferential policies that our State has issued to promote the development of the economy, it has attracted a lot of investment capital from abroad. However, are there any ways that investors can contribute capital to Vietnam? Once they have invested capital in Vietnam, can investors increase their investment capital and in what forms? This is also a question that many customers send to TLK Law Firm.
Therefore, through this article, we will answer your questions about "What are the forms of increasing investment capital? "In what ways do investors contribute capital to Vietnam? ”.
Photo 1. Ways of increasing investment capital? In what ways do investors contribute capital to Vietnam?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO FORMS OF INCREASING INVESTMENT CAPITAL, METHODS WHICH INVESTORS CONTRIBUTE CAPITAL INTO VIETNAM
1. What is investment capital? What is an investor?
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 investment activities investors' business. Investors are organizations and individuals carrying out business investment activities, including domestic investors, foreign investors and economic organizations with foreign investment capital. In particular, foreign investors are individuals with foreign nationality or organizations established under foreign laws carrying out business investment activities in Vietnam. Domestic investors are individuals with Vietnamese nationality or economic organizations that do not have foreign investors as members or shareholders.
2. Forms of increasing investment capital
Pursuant to the Investment Law 2020, investors can increase their investment capital in the following forms:
(1) Purchase shares of a joint stock company from the company or shareholders;
(2) Purchase of capital contributions includes:
- The capital contribution of a member of a limited liability company to become a member of a limited liability company;
- The capital contribution of a capital contributing member in a partnership to become a capital contributing member of a partnership;
- Capital contributions of members of other economic organizations do not fall into the above cases.
Thus, to increase their capital contribution to Vietnam, investors can choose the above forms of increasing investment capital according to the provisions of Vietnamese law.
3. Methods by which investors contribute capital to Vietnam
Pursuant to the Investment Law 2020, investors can contribute capital to Vietnam by the following methods:
(1) Buy shares issued for the first time or additional shares issued by a joint stock company;
(2) Contribute capital to limited liability companies and partnerships;
(3) Contribute capital to other economic organizations that do not fall into the above cases.
Thus, with investment methods prescribed by Vietnamese law, investors can contribute capital to Vietnam.
=> See more: Consequences of procedures for terminating investment project activities
Photo 2. Ways of increasing investment capital? In what ways do investors contribute capital to Vietnam?_Hotline: 0972118764
II. SUMMARY OF THE ANSWER SECTION: WHAT ARE THE FORMS OF INCREASING INVESTMENT CAPITAL? IN WHAT METHODS DO INVESTORS CONTRIBUTE CAPITAL INTO VIETNAM?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Business investment is where investors invest capital to carry out business activities. Thus, investors can increase investment capital in the following forms:
1. Buy shares of a joint stock company from the company or shareholders;
2. Buy members' capital contributions
In addition, investors can contribute capital to Vietnam by the following methods according to the provisions of the Investment Law 2020 as follows:
1. Buy shares issued for the first time or additional shares issued by a joint stock company;
2. Contribute capital to limited liability companies and partnerships;
3. Contribute capital to other economic organizations.
=> See more: How to carry out procedures for terminating investment project activities?
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.
=> See more: Is it possible for an enterprise to carry out steps of dissolving procedures simultaneously at multiple agencies?
IV. SOME QUESTIONS RELATED TO FORMS OF INCREASING INVESTMENT CAPITAL, METHODS WHICH INVESTORS CONTRIBUTE CAPITAL INTO VIETNAM
Question 1: What forms of investment support are there?
Reply:
Pursuant to the Investment Law 2020, with the orientation of socio-economic development and the ability to balance the state budget in each period, investors are supported in the following forms:
(1) Support the development of technical and social infrastructure systems inside and outside the investment project fence;
(2) Support training and human resource development;
(3) Credit support;
(4) Support for access to production and business premises; Support production and business establishments to relocate according to decisions of state agencies;
(5) Scientific, technical and technology transfer support;
(6) Support market development and provide information;
(7) Research and development support.
Thus, with investment support, investors can more easily invest and develop in the Vietnamese market according to the provisions of law.
Question 2: How are investors selected when implementing investment projects?
Reply:
Pursuant to the Investment Law 2020, when conducting investment activities when implementing an investment project, investors will be selected through one of the following forms:
(1) Auction of land use rights according to the provisions of land law;
(2) Bidding to select investors according to the provisions of law on bidding;
(3) Investor approval in the following cases:
- In cases where an auction of land use rights is held but only one person registers to participate or the auction is unsuccessful according to the provisions of land law or in cases where an auction is held to select an investor with only one investor, The investor registers according to the provisions of law on bidding, the competent authority carries out investor approval procedures when the investor meets the conditions prescribed by relevant laws.
- Investment projects subject to investment policy approval, the competent authority approves the investment policy and at the same time approves the investor without auctioning land use rights or bidding to select investors in the investment project. the following cases:
+) Investors have the right to use land, except in cases where the State recovers land for defense and security purposes, or recovers land for socio-economic development for national and public benefits according to regulations. of law and land;
+) Investors receiving transfers, capital contributions, or leases of agricultural land use rights to carry out non-agricultural production and business investment projects are not subject to land recovery by the State according to the provisions of law. About land;
+) Investors implementing investment projects in industrial parks and high-tech parks;
+) Other cases not subject to auction or bidding according to the provisions of law.
Thus, investors will be selected through one of the above forms when participating in investment activities in Vietnam.
Question 3: In what cases must the procedure for granting an investment registration certificate be carried out?
Reply:
Pursuant to the Investment Law 2020, investment projects must carry out procedures to apply for an investment registration certificate including:
(1) Investment projects of foreign investors;
(2) Investment projects of economic organizations are as follows: capital investment, share purchase, capital contribution purchase; Invest in the form of BCC contract if that economic organization falls into one of the following cases:
- There are foreign investors holding more than 50% of the charter capital or the majority of partners are foreign individuals for economic organizations that are partnerships;
- There is an economic organization specified in the Investment Law 2020 that holds more than 50% of charter capital;
- There are foreign investors and economic organizations specified in the Investment Law 2020 holding more than 50% of charter capital.
Thus, when investors fall into the cases specified above, they need to carry out procedures to apply for an investment registration certificate according to the provisions of Vietnamese law.
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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