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Investors Implement Investment Through Capital Contribution, Share Purchase, or Capital Share Purchase

  • Writer: Huong Mai
    Huong Mai
  • Mar 4
  • 2 min read

1. Conditions for Investors to Invest Through Capital Contribution, Share Purchase, or Capital Share Purchase:

a) Foreign investors must meet the conditions for market access for foreign investors;b) Ensure national defense and security in accordance with the Investment Law 2020;c) Comply with land law regulations regarding the conditions for land use rights, land use conditions on islands, border communes, wards, towns, coastal communes, wards, towns.


2. Investors May Contribute Capital to Economic Organizations in the Following Forms:

The forms of investment participation through capital contribution, share purchase, and capital share purchase are stipulated in Article 25 of the Investment Law 2020 as follows:

a) Purchase shares from a joint-stock company, either from the company itself or its shareholders;b) Purchase capital contributions from a limited liability company member to become a member of the limited liability company;c) Purchase capital contributions from a partner in a partnership company to become a contributing partner in the partnership;d) Purchase capital contributions from a member of another economic organization, not falling under the cases stipulated in points a, b, and c of this section.


3. Components of the Investment Procedure Documentation for Capital Contribution, Share Purchase, and Capital Share Purchase:

a) Registration document for capital contribution, share purchase, or capital share purchase (Form A.I.7.docx);b) A copy of the legal documents of the individual, organization contributing capital, purchasing shares, purchasing capital contributions, and the economic organization with foreign investment;c) A written agreement outlining the principles of capital contribution, share purchase, or capital share purchase between the foreign investor and the economic organization with foreign investment, or between the foreign investor and the shareholders or members of that economic organization;d) A copy of the land use rights certificate of the economic organization with foreign investment (in cases stipulated in point b, Clause 4, Article 65 of Decree 31/2021/NĐ-CP).

– Number of sets of documents: 01 set.– Competent authority to handle: Department of Planning and Investment.– Processing time:

  • 15 days from the date of receipt of valid documents.

  • If the economic organization with foreign investment has a land use certificate for land in islands, border communes, wards, towns, or coastal communes, or in areas affecting national defense and security: 27 days from the date of receipt of valid documents.

This is the consulting content we provide regarding the procedure for foreign investors to invest through capital contribution, share purchase, or capital share purchase. If you need to find an experienced consulting firm regarding business and legal issues related to investment activities in Vietnam, please contact us for further guidance!

 
 
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