WHAT DOCUMENTS NEED TO BE PREPARED FOR AN INVESTMENT PROJECT CAPITAL INCREASE APPLICATION?
QUESTION
Dear TLK Law Firm, we hope that your company will answer the following question: I am a foreign investor implementing an investment project in Vietnam. Currently, I have mobilized additional investment capital for the project and must carry out procedures to increase investment project capital. However, I still do not understand what documents and papers need to be prepared for an investment capital increase application. So, lawyer, let me ask: What documents do I need to prepare for an investment project capital increase application? 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. Decree No. 122/2021/ND-CP issued by the Government on December 28, 2021 regulating penalties for administrative violations in the field of planning and investment;
4. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
The globalization process is strongly promoting the integration of countries into the world and regional economy. Among them, foreign direct investment (FDI) is an activity that occupies an increasingly important position for both investing and receiving countries, especially developing countries like Vietnam. This is considered a lever to help the country promote economic development. During the process of foreign investors implementing investment projects in Vietnam, it is difficult to avoid some changes that lead to adjusting the investment project, especially when increasing the capital of the investment project. In this case, foreign investors must carry out procedures to register an increase in investment capital at a competent authority in Vietnam. However, when customers carry out the procedure, they encounter many difficulties and obstacles because they do not fully understand the legal regulations governing this issue.
Through the article below, we - TLK Law Firm will help you answer questions related to what documents need to be prepared for an investment project capital increase profile?
Photo 1. What documents need to be prepared for an investment project capital increase application?_ Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO INCREASING INVESTMENT PROJECT CAPITAL
1. Distinguish between investment project capital and company charter capital
In the case of investment in the form of establishing a foreign enterprise in Vietnam by foreign investors, many people often mistakenly believe that the investment project capital and the company's charter capital are the same. However, these two types of capital are completely different. As follows:
Pursuant to the Investment Law 2020, investment project 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.
Pursuant to the Enterprise Law 2020, charter capital is the total value of assets contributed or committed to by company members and owners when establishing a limited liability company or partnership; is the total par value of shares sold or registered to buy when establishing a joint stock company.
Thus, the company's charter capital and investment project capital are two completely different concepts and are clearly explained in relevant legal documents. Accordingly, investment project capital is the capital used to implement the investment project.
=> See more: Is it possible for an enterprise to carry out steps of dissolving procedures simultaneously at multiple agencies?
2. What is registration to increase investment project capital?
Pursuant to the Investment Law 2020, 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, use 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.
Thus, in essence, registering to increase capital of an investment project is the foreign investor making adjustments to the capital content recorded in the previously issued Investment Registration Certificate. Because increasing the capital of an investment project will change the content of the Investment Registration Certificate, it needs to be adjusted to ensure the accuracy of the information on this Certificate.
=> See more: How to carry out procedures for terminating investment project activities?
Photo 2. What documents need to be prepared for an investment project capital increase application?_ Hotline: 0972118764
II. PROCESS OF IMPLEMENTING PROCEDURES FOR REGISTRATION FOR INCREASING INVESTMENT PROJECT CAPITAL
1. Steps to carry out procedures for registering an increase in investment project capital
Step 1: The foreign investor prepares documents to adjust the Investment Registration Certificate regarding the content of increasing capital of the investment project;
Step 2: Foreign investors submit documents at the Investment Registration Authority;
Step 3: The investment registration agency receives and appraises documents or requests amendments and supplements (if necessary);
Step 4: The investment registration agency decides to adjust the Investment Registration Certificate regarding the content of increasing capital of the investment project;
Step 5: Foreign investors receive the results.
2. Document components and procedures for registering to increase investment project capital
A. Document components:
1. Document requesting adjustment of investment project to increase investment project capital;
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 the adjustment
- Documents on the investor's legal status;
- Documents proving the investor's financial capacity include at least one of the following documents: the investor's 02 most recent financial statements; commitment to financial support from the parent company; commitment to financial support from financial institutions; guarantee of the investor's financial capacity; Other documents proving the investor's financial capacity;
- Investment project proposal includes the following main contents: investor or form of investor selection, investment objective, investment scale, investment capital and capital mobilization plan, location, deadline, implementation progress, information on current land use status at the project location and proposed land use needs (if any), labor needs, proposals for investment incentives, socio-economic impact and efficiency of the project, preliminary assessment of environmental impact (if any) according to the provisions of law on environmental protection.
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).
B. Resolution agency
1. Management Board of industrial parks, export processing zones, high-tech zones, and economic zones (for investment projects in industrial parks, export processing zones, high-tech zones, and economic zones); or,
2. Department of Planning and Investment (for investment projects outside industrial parks, export processing zones, high-tech zones, and economic zones); or,
3. 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 are 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 directly at the investment registration agency headquarters; or,
- Submit by post to the Investment Registration Authority headquarters; or,
- Done online through the National Investment Information System.
D. Implementation results
The investment registration certificate has had its content regarding investment project capital adjusted.
III. SUMMARY OF THE ANSWER SECTION: WHAT DOCUMENTS ARE REQUIRED TO PREPARE IN INVESTMENT PROJECT CAPITAL INCREASE DOCUMENTS?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Thus, increasing the capital of an investment project will change the content of the Investment Registration Certificate issued to the investor implementing that project. In essence, the investor who carries out the procedure to register an increase in investment capital of an investment project is to carry out the procedure to adjust the Investment Registration Certificate regarding the increase in investment capital of the investment project at the Agency. investment registration.
Documents for increasing capital of investment projects include:
1. Document requesting adjustment of investment project to increase investment project capital;
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 the adjustment;
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.
=> See more: Consequences of procedures for terminating investment project activities
V. SOME QUESTIONS RELATED TO REGISTRATION FOR INCREASING INVESTMENT PROJECT CAPITAL
Question 1: Do I have to resubmit my Investment Registration Certificate if the adjusted registration content is not subject to an Investment Registration Certificate?
Reply:
The answer is: It is not required to resubmit the Investment Registration Certificate.
Pursuant to Decree No. 31/2021/ND-CP, for investment projects that have been granted an Investment Registration Certificate but have adjusted content that does not require a Investment Registration Certificate, the investor shall return the Investment Registration Certificate to the investment registration agency (if the investor so wishes) and continue implementing the investment project according to the provisions of law.
Question 2: Will increasing investment project capital without adjusting the Investment Registration Certificate be penalized?
Reply:
The answer is yes.
Pursuant to Decree No. 122/2021/ND-CP, foreign investors do not carry out procedures to adjust the Investment Registration Certificate in case the adjustment of the investment project changes the content of the Certificate. If you accept investment registration, you will be fined from 70,000,000 VND to 100,000,000 VND.
In addition, after being fined, the investor is also subject to remedial measures by the competent authority: forced to carry out procedures to adjust the Investment Registration Certificate at the relevant Investment Registration Agency.
=> See more: Cases of terminating investment project activities? Can a project that has not yet expired be terminated?
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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