Question
My company wants to transfer an investment project to other investors. Is this permitted by law ? Lawyer in Danang advise on procedures for changing investors in this case ?
Answer
Changing investors in case of investment project transfer ?
An investor (the transferor) may transfer part of or the whole investment project to another investor (the transferee) in accordance with the conditions specified in Clause 1 Article 45 of the Law on Investment. If the project transfer generates income, the transferor shall fulfill his/her tax liability as prescribed by law (Clause 1, Article 37, Decree No. 118/2015-ND-CP dated November 12, 2015).
Procedures for changing investors in case of investment project transfer:
Procedures for changing the investor of a project operating under an Investment Registration Certificate which is not required to have a decision on investment policies:
The transferor shall submit a set of application files to the investment registration authority, which consists of: a written request for project adjustments, a report on the project’s progress up to the time of transfer; the project transfer contract or another document with equivalent legal value; copies of the ID card or passport (if the investor is an individual) or Certificate of Enterprise Registration or another document with equivalent legal value of the transferee (if the investor is an organization); copies of the Investment Registration Certificate or decision on investment policies (if any); copies of the BCC contract (for BCC projects); copies of one of the following documents of the transferee: financial statements of the last 02 years; commitment to provide financial support by the parent company, commitment to provide financial support by a financial institution, the guarantee of transferee’s financial capacity, documents showing the transferee’s financial capacity;
The investment registration authority shall consider the fulfillment of conditions for project transfer specified in Clause 1 Article 45 of the Law on Investment to adjust the Investment Registration Certificate within 10 working days from the day on which the valid application files specified in Point a of this Clause are received (Clause 1, Article 37, Decree No. 118/2015-ND-CP dated November 12, 2015)./.
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Law on Investment in Vietnam No. 67/2014/QH13 dated November 26, 2014 (replaced the Law on Investment No. 59/2005/QH11 dated November 29, 2005).
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