Navigating the Financial Landscape: Establishing a Financial Investment Company in Vietnam

The prospect of venturing into the dynamic financial landscape of Vietnam as a financial investment company can be both exciting and daunting. Understanding the legal framework, fulfilling the necessary conditions, and meticulously following the established procedures are crucial for a successful launch. Read this article from NT International Law Firm for more information.

Navigating the Financial Landscape: Establishing a Financial Investment Company in Vietnam

Legal Basis for a Financial Investment Company:

• Law on Credit Institutions 2010: This law lays the foundation for the establishment and operation of financial institutions, including non-bank credit institutions like financial investment companies.
• Decree No. 56/2015/ND-CP: This decree details specific regulations and procedures for establishing and operating finance companies, outlining capital requirements, personnel qualifications, and licensing processes.
• Circulars and guidelines: Additional regulations issued by the State Bank of Vietnam may apply depending on the specific banking activities your company intends to undertake.

Conditions for Establishment:

Launching a financial investment company in Vietnam requires fulfilling specific legal and financial conditions. Let’s delve deeper into each essential aspect:

1. Capital:

• Minimum legal capital: Currently, the minimum legal capital requirement for establishing a financial investment company in Vietnam stands at 500 billion VND. This substantial capital ensures the company has sufficient resources to operate safely and efficiently, minimizing risks for investors and clients.

2. Founding Members:

• Reputability and financial capacity: The founding members, whether individuals or organizations, must possess a strong reputation for financial stability and ethical conduct. Additionally, they need to demonstrate adequate financial capacity to contribute the required capital and support the company’s initial operations.
• Qualifications for individuals:
  • Vietnamese nationality and no restrictions under the Enterprise Law 2020.
  • Sufficient financial resources to contribute capital.
  • University or postgraduate degree in economics or law.
  • Commitment to providing financial support to the company in case of capital or solvency difficulties.
• Qualifications for organizations:
  • Vietnamese enterprises or credit institutions.
  • Meet specific financial requirements based on their nature (e.g., minimum equity capital, profitability).
  • Maintain safety ratios and comply with regulatory standards.
  • Possess experienced personnel and adequate resources for financial operations.

3. Personnel:

• Qualified staff: The company needs to recruit and retain a team of qualified personnel with relevant expertise and professional licenses. The specific qualifications required will depend on the company’s chosen banking activities.
  • Expertise in finance, banking, investment, and related fields.
  • Professional licenses for specific activities (e.g., securities brokerage, financial consulting).
  • Strong analytical and problem-solving skills.

4. Additional Conditions:

• Business scope: Clearly define the types of financial investment activities the company intends to undertake.
• Compliance with regulations: Ensure adherence to all applicable laws, regulations, and circulars issued by the State Bank of Vietnam and other relevant authorities.
• Internal governance: Implement robust corporate governance practices and ensure effective risk management systems.
• Technology and infrastructure: Invest in adequate technology and infrastructure to support your financial operations.

5. Meeting Specific Activity Requirements:

• Depending on the specific banking activities your company plans to offer, additional requirements may apply. These may include:
  • Minimum capital levels.
  • Specific staff qualifications and licenses.
  • Technological infrastructure and security measures.
  • Regulatory approvals and licenses.

6. Continuing Compliance:

• Financial investment companies are subject to ongoing supervision and regulations by the State Bank of Vietnam. Companies must maintain compliance with all relevant laws and financial standards to continue their operations.

By fulfilling these conditions and demonstrating a commitment to sound business practices, financial investment companies can establish themselves as reliable and reputable players in Vietnam’s dynamic financial landscape.

Procedures for Establishment:

Step 1: Prepare Documents:

• Application for Business Registration: Form No. 03.
• Company Charter: outlining organizational structure, operations, and activities.
• List of Shareholders/Members: depending on your chosen business structure.
• Legal Documents: certified copies for all members/shareholders and authorized representatives.
• Proof of Financial Capacity: demonstrating compliance with capital requirements.
• Additional documents: may be required depending on your chosen activities.

Step 2: Submit Application:

• To the Business Registration Office of the Department of Planning and Investment in your chosen province/city.

Step 3: Processing and Review:

• 3 working days for the Business Registration Office to review your application and issue a business registration certificate.
• You may receive a notification if any revisions or additional documents are required.

Step 4: Receive Business Registration Certificate:

• Upon approval, you will receive your official Certificate of Business Registration.

Post-Establishment Procedures:

• Apply for a License to Qualify for Financial Investment Business: from the State Bank of Vietnam.
• Announce Business Registration Content: on the national electronic information portal.
• Order Seal Engraving and Announce Seal Sample: for company identification.
• Open a Bank Account: for managing company finances.
• Buy Digital Signature: for online tax payments and declarations.
• Issue Invoices and Hang Company Signs: for operational purposes.
• Declare and Pay Taxes: including value added tax, corporate income tax, and license tax.
• Contribute Committed Capital: within 90 days of obtaining the business license.
• Hire an Accountant or Use Accounting Service: for bookkeeping and tax compliance.

Additional Points:

• Seek legal guidance: throughout the process to ensure compliance and address legal complexities.
• Specific requirements may apply: depending on your chosen activities and location.
• Stay informed of updates: to the legal framework and regulations.

Conclusion:

By understanding the legal environment, fulfilling the necessary conditions, and diligently following the established procedures, you can confidently navigate the path to establishing a thriving financial investment company in Vietnam. Remember, seeking expert legal counsel throughout the process ensures a smooth launch and empowers you to navigate the intricacies of financial operations. With careful planning, meticulous execution, and a firm grasp of the legal landscape, you can confidently embark on your entrepreneurial journey and contribute to the vibrant financial ecosystem of Vietnam.

NT International Law Firm is Here to Help

NT International Law Firm has addressed the question of how you can start your own financial investment company. If you have any further questions or concerns regarding corporate law, please contact our law firm immediately for expert legal advice.

If you require any legal assistance, please feel free to reach out to us via phone at 090 252 4567 or through email: info@ntpartnerlawfirm.com. At NT INTERNATIONAL LAW FIRM, our team is committed to offering you prompt and personalized advice.

You also might be interested in:

• The 2015 Civil Code in English
• The 2020 Law On Enterprises in English