BCC CONTRACT INVESTMENT CONSULTANCY: THE STORY OF KOREA CLIENTS

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Currently, there are many foreign investors investing in Vietnam. In order to attract foreign investors, our state has regulated many forms of investment so that investors can choose to suit their business needs. In which, many investors choose the form of BCC contract. Below, OTIS LAWYERS will share with readers an BCC contract investment consultancy for a Korean customer who invested in Vietnam.

Desire to make investments without forming an organization for business in Vietnam

Mr. Han shares: “I learned from some researches that Vietnam is a potential market with abundant human resources. Vietnam is also currently expanding its economy to attract foreign investors. In Korea I also have a shoe manufacturing company. Currently I want to expand the market to Vietnam.

I have contacted and agreed to cooperate with X enterprise specializing in distribution and retail of footwear. My company will contribute 60% capital and be responsible for production. X enterprise will contribute 40% capital, be responsible for the distribution and retail of goods. However, both sides do not want to establish an economic organization. In my side, I want to cooperate with many other enterprises in the future. Therefore, I contact lawyers to consult me, whether I can invest in Vietnam without setting up an economic organization. If so, how should I do it? Is there any form where the procedure is simplest?”

Consultation on selecting investment forms

Based on Mr. Han's wishes, a lawyer of OTIS LAWYERS has consulted 2 types of foreign investment for Mr. Han's reference:

Investment in the form of capital contribution or purchase of shares, stakes

About the advantages, investors can quickly implement the project, and save a lot of costs by not having to carry out many procedures. However, Mr. Han wants to contribute 60% of the capital, according to the provisions of the Investment Law, he has to carry out investment registration procedures. Thus, this form is relatively complicated, not suitable for the wish of Mr. Han

Investment in the form of BCC business cooperation contract

Advantages:

  • Due to not establishing a legal entity, investors are often proactive, more flexible and less dependent on partners when deciding issues of investment projects.
  • Saving time, cost of implementation, amount of capital agreed by both parties.
  • Both parties limit the risk if the business cooperation is not as desired and just liquidate the contract when they stop cooperating

Disadvantages:

  • There is no tight binding between the two parties
  • The parties agree to carry out investment activities leading to some paper problems, legal responsibility must have one responsible party, leading to unfairness, especially for foreign enterprises that can be more loss.
  • The two investors will have to choose a seal of one of the investors to serve the activities of the investment project. This may cause trouble and potential risks for investors.

After listening to consultation on the advantages and disadvantages of the two forms, Mr. Han decided to choose the investment form under the BCC contract. He asked lawyers to consult on some procedures in cooperating with X enterprise.

OTIS LAWYERS advises on investment procedures in the form of BCC contract (BCC contract investment consultancy)

According to the investment consultants of the OTIS LAWYERS, the content of the BCC contract signed between Mr. Han and X enterprise must have the following contents:

  • Names, addresses and authorized representatives of the two parties:
  • Name and address of Mr. Han, and the representative of X enterprise
  • Addresses for the transaction both sides
  • Objectives and scope of business investment activities;
  • Contributions of the parties to the contract and distribution of business investment results between the parties;
  • Progress and duration of contract performance;
  • Rights and obligations of the parties to the contract;
  • Amending, transferring, terminating the contract;
  • Liability for breach of contract, dispute settlement method.
  • In addition to the above contents, the participants have the right to agree on other contents that are not contrary to the provisions of law.

Investment consulting service of OTIS LAWYERS

[BCC contract investment consultancy] OTIS LAWYERS is always proud to be a professional unit in the field of investment consulting in accordance with the law. Having a team of lawyers with high expertise, extensive experience and dedication to clients, OTIS LAWYERS believes in providing clients with the best, most professional service, reasonable cost and fastest processing time. We commit that all information of clients is absolutely confidential and interests of clients always come first. Any questions please contact:

OTIS AND PARTNERS LAW FIRM

Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi

Email: [email protected]

Hotline: 0987748111

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