Vietnam’s rapidly growing economy has made it an attractive destination for foreign investors. A crucial step in establishing your business presence in the country is obtaining a Vietnam Investment Registration Certificate (IRC). This comprehensive guide will walk you through the process, requirements, and best practices for securing your IRC.
1. Introduction
Foreign Direct Investment (FDI) has played a significant role in Vietnam’s economic development over the past few decades. As the country continues to open its doors to international businesses, understanding the investment registration process becomes essential for foreign entrepreneurs and corporations alike.
The Investment Registration Certificate (IRC) is a fundamental document for foreign investors looking to establish their presence in Vietnam. It serves as official approval from the Vietnamese government for your investment project and is a prerequisite for further business registration procedures.
2. Understanding the Vietnam Investment Registration Certificate
The IRC is a legal document issued by the Department of Planning and Investment (DPI) that grants permission for foreign investors to carry out specific investment activities in Vietnam. It outlines the scope of the investment project, capital requirements, and other crucial details.
The legal basis for the IRC is primarily found in the Law on Investment and its implementing decrees. These regulations have been updated recently to streamline the process and attract more foreign investment.
3. Conditions for Obtaining an Investment Registration Certificate
As stipulated in Article 38 of the Law on Investment 2020 and guided by Decree 31/2021/ND-CP.
For investment projects not subject to investment policy approval by the National Assembly, the Prime Minister, or the Provincial People’s Committee, investors may be granted an Investment Registration Certificate if the following conditions are met:
a) The project is not within sectors or industries prohibited from investment and business as stipulated in Article 6 of the Law on Investment 2020 and in international investment treaties;
b) The project has a defined location based on a valid copy of the land use right certificate, a valid copy of a lease agreement, or other documents confirming the right to use the location for the investment project;
c) The project is consistent with planning requirements as prescribed in Clause 7, Article 31 of Decree 31/2021/ND-CP;
d) The project meets the conditions for investment per land area, as determined by the Provincial People’s Committee based on local conditions and approved by the Standing Committee of the Provincial People’s Council (if applicable), and meets labor utilization requirements (if any);
e) The project meets market access conditions for foreign investors.
4. Step-by-Step Process to Obtain an IRC
4.1 Preparation of Required Documents
Before applying for an IRC, you’ll need to prepare the following documents:
- Investment project proposal
- Financial capacity proof
- Joint Venture Contract (if applicable)
- Copy of passport or ID for individual investors, or Certificate of Incorporation for corporate investors
- Power of Attorney (if submitting via a representative)
4.2 Submission of Application
Submit your application dossier to the local DPI where your project will be located. Some provinces now offer online submission options, but it’s advisable to check with the specific DPI for their preferred method.
4.3 Review and Approval Process
The DPI will review your application, which typically takes 15-45 working days. They may request additional information or clarification during this period.
4.4 Issuance of the IRC
Upon approval, the DPI will issue your IRC. This document is crucial for proceeding with further business registration steps.
5. Conclusion
Obtaining a Vietnam Investment Registration Certificate is a crucial step for foreign investors looking to tap into the country’s growing market. While the process can be complex, proper preparation and understanding of the requirements can lead to a successful application.
Vietnam’s commitment to attracting foreign investment is evident in its continual efforts to streamline the IRC process. As the country’s economy continues to grow, those who navigate the investment landscape successfully stand to reap significant rewards.
At Harley Miller Law Firm, we dedicate ourselves to providing top-notch legal services tailored to your unique needs. Whether you’re navigating complex legal challenges or seeking expert guidance, our experienced team is here to help you every step of the way.
FAQs
How long does it take to get an Investment Registration Certificate in Vietnam?
Typically, the process takes about 15 working days after submission of a complete application. However, complex projects may require additional time.
Can I apply for an IRC online?
Some provinces offer online application options. Check with the local Department of Planning and Investment for their specific procedures.
What happens if my IRC application is rejected?
You can revise and resubmit your application addressing the reasons for rejection. Seeking professional advice may help in this situation.
Do I need an IRC for all types of investments in Vietnam?
Most foreign investments require an IRC, but there are some exceptions. Consult with a legal expert to determine your specific requirements.
Can the IRC be transferred to another investor?
In most cases, transferring an IRC requires approval from the issuing authority. The process is similar to applying for a new IRC.
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