In September 2019, new provision on the investment and enterprises have been promulgated by the Ministry of Finance and the State Bank of Vietnam. Hereinafter LuatViet presents:
Circular 06/2019/TT-NHNN (“Circular 06”) of the State Bank of Vietnam, which came into force on 06th of September 2019:
Circular 06 provides the definition of “Foreign direct investment enterprises”, which includes:
- Any enterprises established in the form of investment of establishing a business organization, whose members or shareholders are foreign investors (“FIs”) and granted the Investment Registration Certificate (“IRC”);
- Any enterprises other than those granted the IRC and at least 51% of charter capital of which is owned by foreign investors;
- Project enterprises established by the FIs to implement PPP projects in accordance with law on investment.
Moreover, investors and enterprises please note that:
- In case that foreign investors have opened and used the indirect investment accounts (“IICAs”) but hold at least 51% of its charter capital, such enterprise shall convert to a direct investment account (“DICA”);
- In case that enterprises have opened the DICAs but foreign investors hold less than 51% of its charter capital, shall close their DICAs, and their non-resident FIs shall open an IICA, except for enterprises, who are borrowing and repaying foreign debt through their DICAs.
The conversion of above accounts must be proceeded within 12 (twelve) months from the effective date of Circular 06.
Circular 47/2019/TT-BTC (“Circular 47”), which was issued by the Ministry of Finance, entered into force on September 20th 2019 – Exemption and reduction of enterprise registration fees:
Regarding Circular 47, enterprises which are exempted from the enterprise registration fee includes:
- Enterprises, which supplement and/or change their enterprise information due to the change of administrative boundaries;
- Registration of enterprise’s dissolution, suspension of business; termination on the operation of branches, representative offices, business locations;
- Business registration was conducted online;
- Small and medium enterprises (“SMEs”) converted from business households.
Accordingly, from 20th of September 2019, the fee rate was reduced at merely VND 50,000 / time (currently VND 100,000 / time) for cases of the change in the contents of:
- Enterprise registration certificate (“ERC”);
- Operation registration certificate (“ORC”) of branch, representative office, business location of the enterprise;
- The above Circular also stipulates a reduction of the fee for publishing enterprise registration information from 300,000 VND to 100,000 VND / time.
We trust the above is useful for all purposes and respond to the needs of all our Clients.