Establishing a Securities Company in Vietnam: A Comprehensive Guide

Securities companies play a crucial role in facilitating investment and fueling economic growth. However, establishing a securities company in Vietnam involves complex regulations and procedures. This guide from NT International Law Firm provides a comprehensive overview of the process, highlighting key requirements and offering valuable insights.

What is a Securities Company?

What is a Securities Company?

Imagine a bridge connecting investors and businesses seeking capital. This is the role of a securities company in Vietnam, facilitating access to the stock market and enabling the buying and selling of various financial instruments, including stocks, bonds, fund certificates, ETF fund certificates, government bonds, and more.

Operated under the license of the State Securities Commission (SCIC) and supervised by the Vietnam Stock Exchange (HOSE), Hanoi Stock Exchange (HNX), and the UPCOM Stock Exchange, securities companies go beyond mere trading. They act as trusted advisors, offering personalized investment strategies, market insights, and comprehensive financial services.

Functions of Securities Companies:

• Securities Trading: Buying and selling securities on behalf of investors on the stock exchange.
• Investment Consulting: Providing personalized investment advice and portfolio management services.
• Market Analysis and Research: Offering insights into market trends, economic conditions, and individual securities.
• Capital Raising: Assisting companies in raising capital through various avenues, including Initial Public Offerings (IPOs).
• Underwriting Services: Guaranteeing the sale of a new issue of securities to investors.

Conditions for Establishing a Securities Company:

• Legal Status: Must be a legally established entity recognized by Vietnamese law.
• Charter Capital: Minimum capital requirements vary depending on the specific business activities, ranging from VND 25 billion to VND 165 billion.
• Facilities and Technology: Adequate infrastructure and technological systems are necessary for efficient operations.
• Qualified Personnel: A team of experienced and professionally qualified staff is essential.
• Shareholder and Capital Contributor Eligibility: Specific criteria related to financial stability and legal compliance need to be met.
• Compliance with Regulations: Adherence to professional ethics, risk management, and customer protection guidelines is mandatory.

Process of Establishing a Securities Company:

1. Application Submission: Prepare and submit a complete application package to the State Securities Commission (SSC).
2. Dossier Review: SSC reviews the application for completeness and accuracy.
3. Facility Completion and Capital Blockage: Establish necessary facilities and freeze a portion of the charter capital as required.
4. License Issuance: Upon fulfilling all requirements, SSC issues an establishment and operation license.

Services Offered by NT International Law Firm:

Services Offered by NT International Law Firm:

• Process Consulting: Expert guidance on legal requirements and procedures.
• Documentation Assistance: Help in preparing necessary documents and completing applications.
• Business Planning: Support in developing a comprehensive business plan and strategy.
• Charter Capital Management: Advice on fulfilling capital contribution requirements.
• Regulatory Compliance: Ensures adherence to relevant laws and regulations.
• Licensing Registration: Assistance with registration and license acquisition.

Additional Considerations:

• Timeline: The entire process can take several months, depending on the complexity of the application.
• Legal Fees: Professional assistance incurs legal fees that vary depending on the scope of services required.
• Ongoing Support: NT International Law Firm provides ongoing assistance with legal compliance and regulatory updates after license issuance.

NT International Law Firm is Here to Help

Establishing a securities company in Vietnam requires careful planning, preparation, and compliance with intricate regulations. NT International Law Firm’s comprehensive services can help navigate the process efficiently and ensure a successful launch of your securities business.

NT International Law Firm has addressed the question of how to establish a securites 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