Meet the requirements for licenses and approvals
It is important to distinguish offshore investment from establishing an enterprise (enterprise) overseas but not doing business directly, for example setting up a company under the “offshore” model only to be used as an investment tool. Most of business investments in foreign countries are subject to approval from state agencies.
Decree 83 of 2015 replaces Decree 78 of 2006 of the Government guiding the Law on Investment 2014 which has supplemented regulations on outward investment. The Ministry of Planning and Investment will approve offshore investment when the enterprise satisfies the investment and financial conditions and has fulfilled its tax obligations in the country.
Consider when hiring an offshore investment
Problems occur mainly causing losses and losses to the business in the process of operating, breaking the agreement on hiring that director when there are high profits or the business project fails. Detailed provisions on whether the representative or director position is usually a citizen of the host country, or the hiring of a director as a foreigner can be through contract or in the form of trust in name, are required legal prompt.
Comply with tax and financial obligations
The investor must obtain certification from the tax authority of tax liability prior to investing abroad. Completion of tax procedures with the tax authorities of the host country needs special attention.
Investors always choose a country with a low tax rate to invest, like Vietnam, to enjoy incentives must go through legal procedures. It is also important to consider whether the country has a double taxation avoidance agreement with Vietnam (signed with 73 countries and territories, as of August 1, 2015) to maximize tax benefits.
Overseas companies and domestic businesses
Some Vietnamese businesses, especially startups, choose to locate their headquarters abroad and do business domestically. If you are already a foreign enterprise, your business in Vietnam will be subject to the Investment Law.
Therefore, it is necessary to consider choosing a number of nationalities of the enterprise from the very beginning to avoid problems later, in this case, it can be determined that the business has not been licensed.
Capital transfer abroad
The forms of money transfer services, bringing money to travel or through illegal transactions to carry out the phone have been warned by the authorities. Capital transfer will be made after the certificate of investment registration abroad and approval from the first receiving country is granted.
The transfer of capital to offshore investment and vice versa must be through an account opened with a domestic credit institution under the approval of the State Bank.
Registration documents for offshore investment
For investment projects subject to an offshore investment policy decision from Vietnam, the Ministry of Planning and Investment shall issue an offshore investment registration certificate to the investor within 5 working days from the date of receiving the decision on investment policy.
For projects that are not subject to an offshore investment policy decision from Vietnam, the investor shall submit an application for an investment registration certificate to the Ministry of Planning and Investment. Profile include:
- Copy of ID card, ID card or passport for individual investor; a copy of the Establishment Certificate or other equivalent document certifying the legal status of the institutional investor;
- Decision on offshore investment from Vietnam;
- A written commitment to balance foreign currency sources or a written commitment by an authorized credit institution that commits to arrange foreign currency arrangements for the investor;
- For offshore investment projects from Vietnam in the fields of banking, securities, insurance, science and technology, the investor shall submit a written approval of the competent state agency to the response. offshore investment conditions under the provisions of the Law on Credit Institutions, the Securities Law, the Law on Science and Technology, the Law on Insurance Business;
- Documents identifying the location of the investment project execution are applicable to projects that require documents certifying the location of the investment project’s execution; and
- The investor’s written certification of the investor’s fulfillment of tax obligations by the time of submission of the investment project dossier.
- Foreign currency on accounts at authorized credit institutions or purchased at licensed credit institutions or foreign exchange from other lawful capital sources as prescribed by law;
- Vietnam Dong is in accordance with the law on foreign exchange management of Vietnam;
- Devices; supplies, raw materials, fuel, finished goods, semi-finished goods; and
- Value of industrial property rights, technical know-how, technological processes, technical services, intellectual property rights, trademarks.