“The Law on Investment 2020 has new points compared to the expired law in 2014 in investment activities of foreign investors in the form of capital contribution, share purchase, capital contribution purchase. If you do not know, it will take a lot of time and effort for foreign investors to conduct business investment activities in Vietnam. What are the changes.”
Clause 2 Article 24 of the Law on Investment 2020 stipulates that conditions for investment in the form of capital contribution, share purchase or purchase of contributed capital for foreign investors must fully meet the following conditions and regulations:
Compared to the expired Law, the Investment Law 2020 adds provisions on ensuring national defense, security and conditions for receiving land use rights in border and coastal areas. The Law also supplements the list of sectors and trades that restrict market access to foreign investors, including sectors and trades that have not yet had access to markets and sectors with conditional market access.
Investors may CONTRIBUTE capital to the business organization in the following forms:
Investors BUY SHARES or CONTRIBUTED CAPITAL of economic organizations in the following forms:
Conditions for implementation under Article 26 of the Law on Investment 2020:
a. Investors must meet the conditions and carry out procedures for changing members and shareholders in accordance with the provisions of law corresponding to each type of economic organization.
b. Foreign investors carry out procedures for registration of capital contribution, purchase of shares or purchase of contributed capital by economic organizations before changing members or shareholders if they are in one of the following cases:
The highlight of this Law on Investment 2020 is to change the capital ownership ratio from 51% to 50% to create unity in other legal documents. According to the Law on Investment 2020 and The Dispatch No. 8909/BKHĐT-PC of December 31, 2020 guiding the implementation of the Law on Investment 2020, clearly stating the dossier of registration of capital contribution, share purchase or contributed capital includes:
Currently, there are many differences in investment regulations for capital contribution, share purchase, purchase of contributed capital compared to the expired Investment Law, investors should pay attention to update and comply, as well as consider when carrying out this activity. If you have any questions regarding the form of capital contribution investment, share purchase or purchase of capital contribution of economic organizations in Vietnam, please contact us for the most specific, quick and accurate answers.