DISTINCTIONS BETWEEN IRC, ERC, AND BRC ACCORDING TO THE LAW OF VIETNAM

IRC, ERC, BRC are terms used in investment and business. So what do IRC, ERC, BRC stand for and what do they mean according to Vietnamese law? Find out with OTIS LAWYERS in the article below...

What is IRC?

According to Clause 11, Article 3 of the Law of Investment 2020, an Investment Registration Certificate (IRC) is a paper or electronic document recording the investor's registration information about an investment project.

Contents of Investment Registration Certificate

According to Article 40 of the Law of Investment 2020, the contents of the Investment Registration Certificate include:

1. Name of investment project.

2. Investor.

3. Investment project code.

4. Location of the investment project, land use area.

5. Objectives and scale of investment projects.

6. Capital of an investment project (including capital contributed by investors and mobilized capital).

7. Operational duration of the investment project.

8. Investment project implementation schedule, including:

a) Progress of capital contribution and mobilization of capital sources;

b) The progress of the implementation of the main operational objectives of the investment project, in case the investment project is divided into phases, the progress of each stage must be specified.

9. Forms of investment incentives and support and grounds, conditions for application (if any).

10. Conditions for investors implementing investment projects (if any).

What is ERC?

ERC is an acronym for the English word Enterprise Registration Certificate. This is a license issued to companies operating under the Law of Enterprise 2020 and the Law of Investment 2020 in Vietnam.

The term ERC is often used for companies with foreign capital. The Enterprise Registration Certificate (ERC) is issued by the Business Registration Office. The registered enterprise will be a legal entity responsible for the implementation of the project.

Content recorded on the ERC includes the following information

• The enterprise code is also the tax code.

• Business name: Vietnamese name, international transaction name, abbreviated name.

• Business address, phone number, email, website, fax.

• Registered Charter Capital.

• Number of shares (For Joint Stock Company)

• Capital-contributing members (For LLCs with 2 or more members)

• Company owner (For 1 member limited liability company)

• Legal representative of the Company.

Type of business that needs an enterprise registration certificate

Types of businesses that need an enterprise registration certificate include the following types:

• Limited liability company with one member

• Limited liability company with 2 or more members.

• Joint Stock Company.

• Partnerships.

• Private enterprise.

• The authority that issues the enterprise registration certificate is the Department of Planning and Investment of the province and city under the management.

In fact, the application for registration of enterprise establishment will depend on each type of business separately. Each type of business will have 1 set of registration documents and accompanying information corresponding to the business registration dossier. Therefore, before registering a enterprise, the client need to choose the appropriate type.

What is BRC?

BRC (Business License) stands for Business Registration Certificate 

A business registration certificate is a type of document issued by a competent state authority (Department of Industry and Trade) to an individual or organization. Some cases must apply for a business license such as: retail distribution of goods, import and export, wholesale of goods such as rice, cane sugar, lubricating oil, etc.

Business conditions are requirements that an enterprise must have or must fulfill when conducting business in a specific line of business, which is expressed by a business license, certificate of business eligibility, practice certificate, certification professional liability insurance, legal capital requirements or other requirements.). In fact, we often refer to all these papers as business licenses for short.

Distinguish IRC, ERC, BRC

ERC stands for Enterprise Registration Certificate, BRC can be understood as Business License. These two terms are often applied to FDI enterprises, especially in the field of distribution and trade.

For any questions or comments, please contact:

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