Navigating the regulatory landscape to establish a joint-stock company with foreign investment is a pivotal step in international business ventures. Moreover, it involves adhering to specific rules and guidelines set forth by the host country to facilitate such ventures while ensuring compliance with international standards. Understanding these regulations is paramount for companies looking to expand their global presence and engage in cross-border investments. In this discussion, we will thoroughly explore the regulations governing the establishment of joint-stock companies with foreign investment. This will help shed light on the complexities and requirements involved in such endeavors, ultimately providing a comprehensive perspective on the critical factors at play in the realm of international business expansion.
Question:
I want to establish a Joint Stock Company with foreign investment, and a foreign individual will be listed as the license holder. What procedures do I need to follow and what requirements do I need to meet?
Answer:
In the case of a business that intends to establish a Joint Stock Company with foreign investment, you need to follow a two-step procedure:
Step 1: Complete the procedures for obtaining the Investment Certificate as specified in Articles 22, 23, and 38 of Law on Investment 2020. The application dossier should be submitted to the Department of Foreign Economic Affairs under the Authority of Planning and Investment.
Step 2: After completing the procedures with the Department of Foreign Economic Affairs, the company can refer to the forms and procedures for business registration on the website: “www.dangkykinhdoanh.gov.vn/news/latest-news/Referencetemplates” according to the regulations of Law on Investment No. 59/2020/QH14.” Once the dossier is complete, the company should submit it directly to the Department of Foreign Economic Affairs and the Business Registration Office under the Authority of Planning and Investment.
Conclusion
In conclusion, the regulations on establishing a joint-stock company with foreign investment are a crucial aspect of international business expansion. Companies embarking on this journey must, first and foremost, meticulously follow the legal framework of the host country. Additionally, they must adhere to compliance requirements and proactively seek legal counsel as needed. This approach allows them to seize global opportunities and, ultimately, establish successful joint-stock companies that significantly contribute to their growth and international presence. Understanding and meticulously complying with these regulations are paramount. They serve as the cornerstone for building sustainable and compliant business ventures on an international scale. Furthermore, adherence to these rules not only ensures legal integrity but also fosters trust among global partners. Consequently, businesses that prioritize compliance find themselves better positioned for long-term success in the dynamic landscape of international commerce.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
