“In most cases, to enter into a licence agreement, the foreign licensor does not need to establish a business entity in Vietnam. Establishing a subsidiary or branch office in Vietnam is optional.
Foreign licensors who wish to establish a business entity in Vietnam have to satisfy certain conditions or restrictions imposed on foreign investors. Typical examples of these conditions and restrictions include, among other things:
-limitations on foreign ownership in certain sectors;
-business sector restrictions;
-requirements for forms of investment;
-geographic restrictions;
-conditions on the qualifications of Vietnamese partners; and
-other conditions or requirements relating to specific business sectors.
As for regulatory review requirements, to establish a company in Vietnam, foreign licensors must obtain at least
-an investment registration certificate (IRC). The IRC will set out content relating to the investment project, such as investors, project location, objectives and scale of the project, investment capital, investment incentives and restrictions; and
-an enterprise registration certificate (ERC). The ERC will provide the corporate details, such as the company name, registered office address, charter capital, owner’s details and legal representatives of the company.
The provincial Department of Planning and Investment or the board of management of the relevant industrial zone or park with jurisdiction over the location of the investment project has the power to approve the IRCs and ERCs. However, larger-scale projects and certain types of projects require a ‘decision on investment planning’ approval from higher-level government bodies prior to submission of the IRC and ERC to the local investment authorities. In addition, approval of the foreign investment from a number of other government bodies may be required, depending on the nature and scale of the foreign investment.”
Thought we already had an IRC and an ERC?!
Jonnyo07
Good things come to those who can wait...
