PROCEDURES TO REMIT INVESTMENT CAPITAL OVERSEAS

In the period of international integration, other than local investment activities, foreign investment activities are also growing and becoming popular.

To implement and expand business activities overseas, procedures to remit investment capital overseas are one of the prioritized issues by investors. Below is some of our consulting information on procedures and related issues when investors want to remit your investment capital overseas.

1. Conditions for investors to remit investment capital overseas

An investor is permitted to remit investment capital overseas in order to conduct investment activities on satisfaction of the following conditions:

Having been issued with an offshore Investment Registration Certificate (IRC), except in the case that an investor is permitted to transfer foreign currency or goods, machinery and equipment overseas in order to serve activities being survey, research and market exploration and to conduct other investment preparatory activities in accordance with Government regulations.

The investment activities have been approved or are licensed by the competent agency of the investment recipient country. If the law of the investment recipient country does not stipulate permission for investment or approval of investment, then the investor must have data proving the right to conduct the investment activities in the investment recipient country;

Having a capital account opened at an authorized credit institution (commercial bank) according to the regulations of the State Bank.

2. How to legally open an offshore investment capital bank account?

To implement investment projects and remit investment capital overseas, investors must open an offshore investment capital bank account as prescribed in Article 65 of the Law on Investment 2020, specifically:

Investors shall open an offshore investment capital bank account at an authorized credit institution in Vietnam in accordance with the law on foreign exchange control.

Any transaction for remittance of money overseas from Vietnam and into Vietnam relating to offshore investment activities must be conducted through an investment capital bank account mentioned above in accordance with the law on foreign exchange control.

3. Registration process to remit investment capital overseas

Step 1: Investors submit an application at State Bank

According to Article 9 of Circular No. 12/2016/TT-NHNN of the State Bank in Vietnam, investors submit an application in person or by post to the branch in the province or city of the State Bank where the business is located head office or an individual registered for permanent residence. Records include:

The application form for the registration of outward investment-related forex transactions (using the form stated in Annex No. 01 of Circular 12/2016/TT-NHNN of the State Bank of Vietnam);

Offshore IRC issued by the competent authority of Vietnam (certified copy or copy with original for verification;

Approval letter or investment license issued by an authority of the receiving country (foreign language copy, Vietnamese translation - the investor's receipt of the accuracy of the copy and the original copy);

A confirmation letter of an authorized credit institution on the opening of an investor's investment capital account, clearly stating the account number and type of foreign currency (the original);

A written certification from an authorized credit institution of the amount of money the investor has remitted abroad before being granted the Certificate of offshore investment registration to meet expenses for the formation of the investment project. overseas investment (in case the investment capital has been transferred abroad before being granted the Certificate of offshore investment registration);

Explanation letter of the need to transfer investment capital abroad in Vietnam Dong (in case of transferring investment capital abroad in Vietnam Dong).

Step 2: The State Bank considers the application

According to the provisions of Circular 12/2016/TT-NHNN of the State Bank of Vietnam, the time limit for settlement is as follows:

If the application is incomplete or invalid, the State Bank shall send a written request to the investor to supplement the application within 5 working days from the date of submission of the application.

Within 10 working days from the date of receipt of complete and valid documents from the investor, the State Bank shall confirm or refuse to confirm the registration of foreign exchange transactions related to offshore investment activities (in case of refusal to confirm, there will be a written notice clearly stating the reason).

ADK & Co Vietnam Lawyers