WHAT IS REQUIRED TO ADJUST THE INVESTMENT CERTIFICATE TO INCREASE CAPITAL?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: Currently, I am investing in a project in Hai Duong and have been approved by a competent state agency to issue investment certificates. I want to expand the scope of my business so I need to increase my investment capital, but I don't clearly understand the regulations on adjusting the investment certificate to increase 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. 29/2021/ND-CP passed by the Government on March 26, 2021 stipulating the order and procedures for appraisal of important national projects and investment monitoring and evaluation;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
When participating in investment activities, investors must meet specific conditions to be granted an investment certificate. During the implementation of an investment project, in addition to the initial investment capital that investors register and record in the Investment Registration Certificate, investors can change their investment capital. In case of increasing investment capital, investors need to carry out procedures to adjust the Investment Registration Certificate according to the provisions of law. However, what is needed to adjust the investment registration certificate in case of capital increase? This is a question that many customers sent to TLK Law Company Limited.
Therefore, through this article, we will answer your questions about "What is required to adjust the investment certificate to increase capital?".
Photo 1. What is required to adjust the investment certificate to increase capital?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO ADJUSTMENT OF CAPITAL INCREASE INVESTMENT CERTIFICATE
1. What is an investment registration certificate?
Pursuant to the Investment Law 2020, an investment registration certificate is a paper or electronic document recording the investor's registration information about an investment project. In particular, an investment project is a set of proposals to invest medium or long-term capital to conduct investment and business activities in a specific area, within a specified period of time and includes open investment projects. expansion, new investment projects, creative startup investment projects.
2. Cases where investors must make adjustments to the investment certificate
Pursuant to the Investment Law 2020, investors with investment projects must carry out procedures to adjust the investment registration certificate in case the adjustment of the investment project changes the content of the registration certificate. Invest if you fall into the following cases:
(1) Changing the objectives specified in the investment policy approval document; additional targets subject to investment policy approval;
(2) Change the scale of land area used by more than 10% or more than 30 hectares, change the investment location;
(3) Changing the total investment capital by 20% or more changes the scale of the investment project;
(4) Extending the progress of investment project implementation if the total project investment time exceeds 12 months compared to the investment project implementation schedule specified in the initial investment policy approval document;
(5) Adjusting the operating term of investment projects;
(6) Technological changes have been evaluated and consulted during the investment policy approval process;
(7) Changing the investor of an investment project whose investment policy is approved at the same time as approving the investor before the project is exploited and operated or changing conditions for investors (if any).
Thus, when falling into one of the above cases, an investor whose investment project has had its investment policy approved must carry out the approval procedure to adjust the investment policy in accordance with the provisions of law.
3. Cases in which progress is adjusted beyond the approved schedule
Pursuant to the Investment Law 2020, for investment projects with approved investment policies, investors may exceed the time limit compared to the approved progress in one of the following cases:
(1) To overcome consequences in cases of force majeure according to the provisions of civil law and land law;
(2) Adjusting the progress of investment projects due to the investor's delay in receiving land allocated, leased, or allowed to change land use purposes by the State;
(3) Adjust the progress of investment project implementation at the request of state management agencies or state agencies that are slow in implementing administrative procedures;
(4) Adjusting investment projects due to changes in planning by state agencies;
(5) Changing the objectives specified in the investment policy approval document; additional targets subject to investment policy approval;
(6) Increasing total investment capital by 20% or more changes the scale of the investment project.
Thus, for projects that fall into one of the above cases, the duration may exceed 24 months compared to the investment project implementation schedule specified in the initial investment policy approval document.
II. PROCEDURES FOR ADJUSTING CAPITAL INCREASE INVESTMENT CERTIFICATE
1. Steps to carry out procedures to adjust investment certificate to increase capital
According to Decree No. 29/2021/ND-CP, the process of adjusting investment certificates to increase capital is conducted as follows:
Step 1: Organizations and individuals apply to adjust investment certificates to increase capital;
Step 2: The agency checks the dossier and requests to complete the dossier (if any);
Step 3: If the application is valid, the state management agency will carry out procedures to adjust the investment certificate;
Step 4: Organizations and individuals receive the results.
2. Profile components
The investor prepares 01 set of documents including the following documents:
1. Written request for approval to adjust investment policies, clearly stating the contents of the request for adjustment and reasons for adjustment;
2. Adjusted investment project proposal or Adjusted Pre-Feasibility Study Report or Adjusted Feasibility Study Report;
3. Documents on the investor's legal status;
4. Documents proving the investor's financial capacity include at least one of the following documents:
- Investor's 02 most recent financial statements;
- Commitment to financial support from the parent company;
- Commitment to financial support from a financial institution;
- Guarantee of the investor's financial capacity;
- Other documents proving the investor's financial capacity.
5. In case the investment project does not request the State to allocate land, lease land, or allow change of land use purpose, submit a copy of land use rights documents or other documents determining the right to use the location. to implement investment projects;
6. Explanation content about the technology used in the investment project for projects subject to appraisal and consultation on technology according to the provisions of law on technology transfer;
7. BCC contract for investment projects in the form of BCC contract;
8. Other documents related to investment projects, conditions and capacity requirements of investors according to the provisions of law (if any);
9. Power of attorney for the person submitting the application (in case of authorizing someone else to do so);
10. Certified copy of personal legal documents (ID card, citizen identification card, valid passport) of the person performing the procedure;
11. Other documents required by competent state agencies (if any).
3. Resolution agency
Investment Registration Office - Department of Planning and Investment where the enterprise is headquartered.
4. How to do it
Submit directly or through the postal system to the Investment Registration Office - Department of Planning and Investment where the enterprise is headquartered.
5. Implementation results
Decision to adjust investment certificate to increase capital.
=> See more: If a foreign company is making a loss, can the investor contribute more capital to the company?
Photo 2. What is required to adjust the investment certificate to increase capital?_Hotline: 0972118764
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: Consulting on establishing investment projects quickly, professionally and comprehensively
IV. SOME QUESTIONS RELATED TO ADJUSTMENT OF CAPITAL INCREASE INVESTMENT CERTIFICATE
Question 1: When implementing an investment project, what principles should investors follow?
Reply:
Pursuant to the Investment Law 2020, principles when implementing investment projects include:
(1) Investment policy approval must be done before the investor carries out an investment project for investment projects subject to investment policy approval;
(2) Carry out procedures for issuance of Investment Registration Certificates before implementing investment projects for investment projects subject to issuance of Investment Registration Certificates;
(3) Investors are responsible for complying with the provisions of the Investment Law 2020, laws on planning, land, environment, construction, labor, fire prevention and fighting, and other relevant laws. Related documents, investment policy approval documents (if any) and Investment registration certificates (if any) during the implementation of the investment project.
Thus, when participating in investment projects, investors need to seriously implement the above investment principles according to the provisions of law.
Question 2: Can foreign investors contribute capital, buy shares, or purchase capital contributions of economic organizations?
Reply:
Pursuant to the Investment Law 2020, foreign investors can contribute capital, purchase shares, or purchase capital contributions from economic organizations when they fully meet the following conditions:
(1) Meet market access conditions for foreign investors according to regulations on industries and professions and market access conditions for foreign investors prescribed by the Investment Law 2020;
(2) Ensure national defense and security according to the provisions of the Investment Law 2020;
(3) Land law regulations on conditions for receiving land use rights, land use conditions in islands, communes, wards, border towns, coastal communes, wards and towns.
Thus, when meeting the above conditions, foreign investors can contribute capital, buy shares, or purchase capital contributions of economic organizations according to the provisions of Vietnamese law.
Question 3: In what cases must investors terminate investment activities?
Reply:
Pursuant to the Investment Law 2020, investors must terminate investment activities in one of the following cases:
(1) The investor decides to terminate the operation of the investment project;
(2) According to the conditions for termination of operations specified in the contract and charter of the enterprise;
(3) Expiration of the investment project's operating term.
Thus, investors must terminate investment activities according to the provisions of law when falling into the above cases according to the provisions of Vietnamese law.
=> See more: Company providing investment certificate adjustment service
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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