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With the continuous development of economic integration, more and more businesses want to conduct overseas investment activities to expand business markets and earn more profits. However, in order to do that, businesses first need to apply for an offshore investment license from the competent authority. So what is the current law of our country on this issue, find out with OTIS LAWYERS in the article below!
Legal Grounds
Investment Law 2020
What is an offshore investment license?
According to Clause 13, Article 3 of the Law on Investment 2020, offshore investment is understood as the transfer of investment capital from Vietnam to abroad by an investor; use profits earned from this investment capital to conduct business investment activities abroad.
Accordingly, an offshore investment license is a document issued by a competent authority to an investor to conduct outward investment activities; when these investors meet the conditions for licensing offshore investment as prescribed by law.
Conditions for issuance of offshore investment licenses
To be granted an investment license abroad, investors need to meet the following conditions:
– The investor's offshore investment activities must comply with the provisions of Vietnamese law, the law of the host country and relevant international treaties; self-responsibility for the efficiency of overseas investment activities.
– Satisfy the conditions on the field of investment abroad:
- Industries banned from offshore investment (Article 53 of the Law on Investment 2020);
- Sectors and trades with conditional outward investment (Article 54 of the Law on Investment 2020).
– The investor commits to arrange foreign currency by himself or commits to arrange foreign currency to carry out offshore investment activities of an authorized credit institution.
– There has been a decision to invest abroad (Article 59 of the Law on Investment 2020).
– There has been a document from the tax authority confirming the investor's tax payment obligation. The time of certification by the tax authorities is not more than 03 months from the date of submission of investment project dossiers.
Procedures for applying for an offshore investment license
Step 1: Prepare the dossier
Investors prepare valid dossiers as required. The dossier includes:
– Documents of registration of outward investment;
– Documents on the investor's legal status;
Investment project proposal (form, objective, scale, location of investment; preliminary determination of investment capital, capital mobilization plan, capital structure; project implementation schedule, stages) investment phase (if any); preliminary analysis of the project's investment efficiency);
– Documents proving the investor's financial capacity (financial statements for the last 2 years of the investor; commitment to financial support of the parent company; commitment to financial support of a financial institution); a guarantee on the financial capacity of the investor, or; other documents proving the financial capacity of the investor);
– Commitment to self-balancing foreign currency sources or a written commitment to arrange foreign currency for investors of an authorized credit institution;
– The document of the owner's representative agency approving the investor to conduct offshore investment activities and; report on internal appraisal of the state-owned enterprise's offshore investment proposal; or decide to invest abroad;
– For outward investment projects in industries and trades with conditional outward investment; the investor submits a document from a competent state agency on the satisfaction of the conditions for outward investment in accordance with relevant laws (if any).
Step 2: Submit the dossier
The investor submits the offshore investment project dossier to the Ministry of Planning and Investment.
After submitting the application, the investor shall register investment information on the National Information System on foreign investment in Vietnam and investment abroad.
Step 3: Verify the dossier
The Ministry of Planning and Investment checks the validity of the application. In case the dossier is invalid or has contents that need to be clarified, the Ministry of Planning and Investment shall notify in writing the investor within 05 working days from the date of receipt of the dossier to complete the dossier.
Step 4: Issuing/Refusing to grant offshore investment licenses
Within 15 days from the date of receipt of valid dossiers. The Ministry of Planning and Investment shall issue the Certificate of offshore investment registration; in case of refusal to grant a foreign investment license, it must notify the investor in writing and clearly state the reasons therefor.
Investment Law consulting service of OTIS LAWYERS
OTIS LAWYERS is always proud to be a professional unit in the field of investment law consulting. With a team of highly qualified lawyers, extensive experience and dedication to clients, we believe that we will provide you with the best, most professional service, reasonable cost and time. complete the process as quickly as possible. We commit that all customer information is absolutely confidential and customer interests always come first.
For any questions or comments, 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]
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