WHAT DOCUMENTS NEED TO BE PREPARED FOR AN INVESTMENT CAPITAL REDUCTION APPLICATION?
QUESTION
Dear TLK Law Firm, we hope to have your company answer the following question: Currently, our investment project has been granted an Investment Certificate and wants to reduce its investment capital. So let me ask, what are the necessary documents to reduce 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
Investment policy approval is the competent state agency's approval of the project's objectives, location, scale, progress, and duration; investor or form of investor selection and special mechanisms and policies (if any) to implement investment projects. One of the forms of certifying that an investment project has been approved or that an investment project is not subject to investment policy approval is being granted an Investment Certificate. Once the Investment Certificate has been granted, investors who want to make investment capital adjustments such as increases or decreases need to submit investment capital adjustment documents to the competent authority and wait for approval.
Next, join us to learn about the documents, implementation conditions, and procedures through the following article: What documents do you need to prepare for an investment capital reduction application?
Photo 1. What documents need to be prepared for an investment capital reduction application?_Hotline: 0972118764
I. WHAT DOCUMENTS ARE SOME IMPORTANT LEGAL ISSUES RELATED TO DOCUMENTS FOR REDUCTION OF INVESTMENT CAPITAL?
1. Adjust investment projects
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. Investment capital is invested by investors who are organizations and individuals carrying out business investment activities, including domestic investors, foreign investors and economic organizations with foreign investment capital.
During the implementation of an investment project, investors have the right to adjust goals, transfer part or all of the investment project, merge projects or divide or split a project into multiple projects, land use rights and assets on land under investment projects to contribute capital to establish enterprises, business cooperation or other contents and must be in accordance with the provisions of law.
Investors carry out procedures to adjust the Investment Registration Certificate in case the investment project adjustment changes the content of the Investment Registration Certificate. In particular, changing the amount of investment capital, specifically reducing investment capital, affects the content stated in the Investment Registration Certificate. Therefore, when making changes to the investment capital, investors must carry out procedures to adjust the Investment Certificate. In this process, 2 cases occur:
(1) Investors whose investment projects have their investment policies approved must carry out procedures to approve investment policy adjustments in cases where changes in total investment capital of 20% or more cause changes of investment project scale;
(2) In the case of reducing investment capital by less than 20%, the investor who makes adjustments to the Investment Certificate is not subject to approval to adjust investment policies.
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2. Conditions for reducing investment capital
Reducing investment capital is changing one of the contents of the investment registration certificate, so the investor must adjust the capital on the investment certificate.
Conditions for investors to reduce total investment capital on the Investment Registration Certificate include:
(1) The company must explain the appropriateness of the total new investment capital in the investment project proposal;
(2) The company must ensure the feasibility of the project and ensure correct and complete implementation of the contents recorded on the investment registration certificate. In case it cannot be done correctly (For example: Changing the project implementation schedule,...), additional adjustments to those contents must be made along with increasing or decreasing investment capital;
(3) The company must explain the investor's financial capacity in case of registering to increase total investment capital, and must commit to properly and fully comply with all civil obligations, if any, in case of reducing investment capital;
(4) Approved by the investment management agency to increase or decrease investment capital expressed through the issuance of an adjusted Investment Registration Certificate.
In short, to adjust or reduce investment capital, investors must meet the conditions specified above.
II. PROCESS FOR IMPLEMENTING PROCEDURES FOR REDUCTION OF INVESTMENT CAPITAL
1. Steps to carry out procedures for requesting investment capital reduction
Case 1: Procedures for adjusting the Investment Certificate when reducing investment capital for investment projects that are not subject to approval to adjust investment policies.
Step 1: The investor submits the required documents to the competent authority to make adjustments to the Investment Project Certificate in case the change in investment capital is less than 20%;
Step 2: The competent authority reviews the dossier and requests its completion (if any);
Step 3: The competent authority issues the Investment Registration Certificate to the investor;
Step 4: Receive results.
Case 2: Procedures for adjusting the Investment Policy Approval Decision when reducing investment capital by 20% or more changes the scale of the investment project for a project that has already had an investment policy approved.
Step 1: The investor submits the required documents to the competent authority to make adjustments to the Investment Project Certificate in case of changing the investment capital from 20%;
Step 2: The competent authority reviews the dossier and requests its completion (if any);
Step 3: The competent authority issues the Investment Registration Certificate to the investor;
Step 4: Receive results.
2. Document components and procedures for applying for an Investment Registration Certificate
A. Document components:
1. Document requesting adjustment of investment project;
2. Report on the implementation of investment projects up to the time of adjustment;
3. Investor's decision on adjusting investment projects for institutional investors;
4. Explain or provide documents related to content adjustment (if any);
5. Power of attorney for the person submitting the application (in case of authorizing someone else to do so);
6. Certified copy of personal legal documents (ID card, citizen identification card, valid passport) of the person performing the procedure;
7. Other documents required by competent state agencies (if any).
Note:
1. In case of adjusting an investment project that has been granted an Investment Registration Certificate and is not subject to approval for investment policy adjustment:
- Number of documents prepared: 08 sets.
2. In case of adjusting an investment project that has been granted an Investment Registration Certificate and is not subject to approval for investment policy adjustment:
- Number of documents to prepare: 04 sets.
B. Resolution agency
Management Board of industrial parks, export processing zones, high-tech zones, and economic zones;
Department of Planning and Investment for investment projects outside industrial parks, export processing zones, high-tech parks, and economic zones;
Investment registration agency where the investor implements the investment project, places or plans to locate the executive office to implement the investment project for the following investment projects:
- Investment projects implemented in 02 or more provincial administrative units;
- Investment projects implemented inside and outside industrial parks, export processing zones, high-tech parks and economic zones;
- Investment projects in industrial parks, export processing zones, high-tech zones, economic zones where the Management Board of industrial parks, export processing zones, high-tech zones, economic zones have not been established or is not within the scope of management of the Management Board of industrial parks, export processing zones, high-tech zones, and economic zones.
C. How to do it
- Submit online application through the national investment information system; or,
- Submit application directly to the competent authority; or,
- Submit documents via postal service to the competent authority.
D. Implementation results
Decided to reduce investment capital.
Photo 2. What documents need to be prepared for an investment capital reduction application?_Hotline: 0972118764
III. SUMMARY OF THE ANSWER SECTION: PROFILE FOR REDUCTION OF INVESTMENT CAPITAL
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Dossier to reduce investment capital requires the following documents:
1. Document requesting adjustment of investment project;
2. Report on the implementation of investment projects up to the time of adjustment;
3. Investor's decision on adjusting investment projects for institutional investors;
4. Explain or provide documents related to content adjustment (if any);
5. Power of attorney for the person submitting the application (in case of authorizing someone else to do so);
6. Certified copy of personal legal documents (ID card, citizen identification card, valid passport) of the person performing the procedure;
7. Other documents required by competent state agencies (if any).
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 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.
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V. SOME QUESTIONS RELATED TO DOCUMENTS FOR REDUCTION OF INVESTMENT CAPITAL, WHAT DOCUMENTS ARE NECESSARY TO PREPARE?
Question 1: What forms of investment are there in Vietnam?
Reply:
Forms of investment in our country:
(1) Investment in establishing economic organizations;
(2) Investing in capital contribution, purchasing shares, purchasing capital contributions;
(3) Implement investment projects;
(4) Investment in the form of BCC contract;
(5) New forms of investment and types of economic organizations according to Government regulations.
Thus, it can be seen that in our country there are many diverse forms of investment for investors to choose from based on their knowledge and understanding.
Question 2: When implementing an investment project, in calling for investment capital, what options can be chosen?
Reply:
Investor selection is conducted 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) Approve investors according to regulations:
- In case an auction of land use rights is organized but only one person registers to participate or the auction fails according to the provisions of land law or in case the auction organization selects an investor but there is 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;
- For investment projects subject to investment policy approval, the competent authority approves the investment policy and at the same time approves the investor without going through auction of land use rights or bidding for investor selection. investment in the following cases:
+ Investors have the right to use land, except in cases where the State recovers land for national defense and security purposes, or recovers land for socio-economic development for national and public benefits according to the provisions of the Law. 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 on 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.
In short, choosing an investor for an investment project cannot be chosen arbitrarily but must be based on the forms of selection prescribed by law as above.
Question 3: Can an ongoing investment project be discontinued?
Reply:
The answer is yes.
Investors who may discontinue the operation of an investment project must notify the investment registration agency in writing. In case of shutdown of an investment project due to force majeure, the investor will be exempted from land rent and reduced land use fees by the State during the shutdown period to overcome the consequences caused by force majeure. . In addition, state agencies can stop operations of investors' investment projects according to regulations.
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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).
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