How Attorneys in Hanoi Help Foreign Clients Navigate the Thriving Business Landscape

 Hanoi, the vibrant capital of Vietnam, is a city steeped in rich history and culture. In recent years, it has emerged as a dynamic hub for business and investment, drawing significant attention from both domestic and international investors. The city’s remarkable transformation into an economic powerhouse is underpinned by various strengths that make it a compelling choice for those looking to invest. We will explore the strengths of Hanoi as an investment destination, delve into the improvements in its business and investment environment, and shed light on how attorneys in Hanoi play a pivotal role in assisting foreign clients to confidently navigate this thriving landscape.

Strengths of Hanoi: A Beacon for Investment

Hanoi boasts several key strengths that position it as a premier destination for foreign investment. These factors combine to create a compelling case for businesses and investors seeking opportunities in Southeast Asia.

Strategic Location:

Hanoi’s strategic geographical location within Vietnam places it at the heart of the country’s economic activities. It serves as a gateway to the booming markets of the Asia-Pacific region. Proximity to major trading partners such as China, Japan, South Korea, and Singapore makes Hanoi an ideal hub for companies looking to expand their reach.

Stable Political Environment:

Vietnam, and by extension, which Hanoi being capital, has consistently maintained political stability. The government has implemented policies to support economic growth and attract foreign investment, providing a secure environment for businesses to thrive.

Robust Economic Growth:

Hanoi has been a key driver of Vietnam’s impressive economic growth. Its GDP continues to rise, supported by diversification across various industries. The city’s economic resilience is particularly attractive to foreign investors.

Infrastructure Development:

Hanoi has invested significantly in infrastructure development, including transportation networks, industrial zones, and technology parks. This commitment to improving infrastructure enhances the city’s connectivity and accessibility for businesses.

Thriving Tech Ecosystem:

Hanoi is home to a thriving technology ecosystem, with a focus on high-tech industries such as information technology and electronics. This environment encourages innovation and attracts tech-savvy investors.

Educational Excellence:

The city is host to a multitude of prestigious universities and research institutions. This rich educational landscape ensures a skilled and qualified workforce, which is essential for businesses seeking to establish a presence in the region.

Cultural Heritage:

Hanoi’s cultural heritage, with its historic sites, vibrant street markets, and diverse cuisine, adds a unique charm to the city. This cultural richness appeals to tourists and investors alike.

Evolving Business and Investment Environment

Over the years, Hanoi has made significant strides in improving its business and investment environment. These improvements have been instrumental in attracting foreign investors and fostering a conducive atmosphere for business growth.

Streamlined Administrative Procedures:

The government has simplified administrative procedures, reducing bureaucracy and red tape. This streamlining of processes has made it easier for businesses to register and operate in Hanoi.

Investment Incentives:

Hanoi offers a range of incentives to foreign investors, including tax breaks, land use rights, and import-export privileges. These incentives enhance the city’s competitiveness in attracting foreign capital.

Trade Agreements:

Vietnam’s participation in numerous international trade agreements has opened up access to global markets. Investors in Hanoi can leverage these agreements for their international expansion plans.

Intellectual Property Protection:

The protection of intellectual property rights has improved significantly. Stringent measures are in place to safeguard the interests of investors, fostering an environment of trust and security.

Financial Services:

Hanoi has a well-developed financial sector, with numerous banks, financial institutions, and investment funds. Access to financial services is crucial for businesses seeking capital and financial stability.

Role of Attorneys in Hanoi

Navigating the intricate landscape of foreign investment in Hanoi requires a deep understanding of local laws, regulations, and business practices. This is where attorneys in Hanoi come into play, serving as invaluable partners for foreign clients.

Legal Expertise:

Attorneys in Hanoi possess extensive legal knowledge of Vietnam’s regulatory framework and business laws. They are well-versed in international law and can provide expert guidance on compliance, contracts, and due diligence.

Market Insight:

These legal professionals have their fingers on the pulse of Hanoi’s business environment. They can offer insights into market trends, industry-specific challenges, and investment opportunities.

Navigating Regulations:

Foreign investors often encounter complex regulatory requirements when entering a new market. Attorneys in Hanoi can help streamline the process, ensuring compliance with all legal obligations.

Risk Mitigation:

Understanding and mitigating risks is paramount in any business venture. Attorneys can assess potential risks, develop risk management strategies, and provide legal solutions to protect their clients’ interests.

Cultural Bridge:

Attorneys in Hanoi act as cultural intermediaries, bridging the gap between foreign investors and local partners. Their knowledge of local customs and business etiquette can be instrumental in building successful partnerships.

Dispute Resolution:

In the event of disputes or conflicts, attorneys play a crucial role in dispute resolution and legal representation. Their expertise can help clients navigate the legal system effectively.

Network Building:

Attorneys in Hanoi often have extensive networks within the business and legal communities. They can connect foreign clients with potential partners, suppliers, and investors, facilitating business expansion.

Due Diligence:

Conducting thorough due diligence is essential before making any investment. Attorneys can assist in conducting due diligence investigations to assess the viability of an investment opportunity

Hanoi’s strengths as an investment destination, coupled with its evolving business and investment environment, make it an attractive choice for foreign investors. Attorneys in Hanoi play a pivotal role in ensuring that foreign clients can confidently navigate the complex landscape of foreign investment. Their legal expertise, market insights, and ability to mitigate risks contribute to the success of businesses seeking to establish a presence in this thriving city. With the guidance of knowledgeable attorneys, foreign investors can unlock the vast potential that Hanoi has to offer, contributing to the city’s continued economic growth and development.

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How to Close a Business in Vietnam?

 All corporations, companies, partnerships, branch offices, representative offices and other business entities are legal entities in Vietnam which can only be dissolved through formal procedures.

I. What are the major challenges with closing a business in Vietnam?

The main thing to remember throughout the process is that the dissolving company, a branch office or a representative office, one should pay close attention to the involvement of all key stakeholders, i.e. the employees, customers, creditors, business partners and relevant authorities.

The following are key information to gather for thorough analysis

Company size in terms of capital and number of employees?

Enterprise’s business sector?

Tax invoice usage declaration?

Annual profit?

Compliance with tax procedures?

Administrative violations in the field of taxation?

Any outstanding tax?

Tax document filing records?

Other tax matters?

II. What does the dissolution process involve?

Once an analysis has been through, the next procedures mostly deal with reporting and submitting the relevant documents to the various regulatories and tax authorities at each step of the process, terminating contracts, liquidating assets and settling liabilities, and general administrative work such as returning the corporate seal, registration certificates, and having the company’s name removed from the system of the license authorities.

III) How to prepare document to close a business in Vietnam?

1. Documents submitted to the licensing authority in Vietnam:

Liquidation notice of enterprise;

Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

The company’s decision on liquidation;

Report on enterprise asset liquidation;

The list of creditors and the paid debt;

Documents evidencing that enterprise has fulfilled all of its tax;

Confirmation on social insurance for employees after the dissolution decision;

The seal and certificate of seal sample registration.

2. Documents submitted to the tax authority in Vietnam:

Liquidation notice of enterprise;

Minutes of the meeting of Management Board / Board of Directors decided on the dissolution of enterprises;

The company’s decision on dissolution;

Audit reports and tax settlements;

The financial statements for the year to date the decision on dissolution;

The company’s tax liabilities audited by tax authority;

Verification of tax obligations of the enterprise.

Closing a business in Vietnam might be a lengthy process and more complicated than setting up a company in Vietnam. Sometimes, it is important to make a decision to exit and start a new venture. As a law firm in Vietnam, we do assist clients to close the business, exit the investment and deal with pending issues with licensing authorities including department of planning and investment, department of labour, tax bureau and others.

Nguồn: https://antlawyers.vn/legal-service/how-to-close-a-business-in-vietnam.html

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Startup Company in Vietnam

 From 2015 onwards, the wave of small and medium-sized startups in Vietnam has been developing rapidly. This development is followed by government’s support in forming legal corridors, scheme to favour startup ecosystem and encourage science and technology organizations, research institute, technology incubator, etc. To be deemed as a startup, an individual or business must start their own business along with an innovative idea. Currently, startup is the legal term as recognized under the laws, especially on Law on Small and Medium Enterprises Assistance 2017.

For clarification, small and medium startups are small and medium enterprise (“SME”) established to implement its business ideas based on the utilization of intellectual property, technology and new business models and are able to grow rapidly. These enterprises are in the stage of getting a business up and running, attaches to science and technology or find out new business models, provide products and services to new market segmentation, growth rapidly and make a difference to domestic and foreign enterprises.

Directive 9/CT-TTg dated on February 18th, 2020 of the Prime Minister requires relevant ministries and agencies such as the Ministry of Planning and Investment, Science and Technology, etc. to implement solutions, remove barriers and resolve difficulties, issue policies to create favorable conditions for startups. These include the proposal to amend the Law on Investment in the direction of facilitating foreign investors to establish, contribute capital, purchase shares, or contributed capital of startup investment funds in Vietnam. Before establishing an economic organization, the foreign investor must have an investment project and carry out the procedures for issuance or amendment of the Investment Registration Certificate, except for the establishment of small and medium-sized startups and startup investment funds in accordance with the Law on Small and Medium Enterprises Assistance. Although the Law on Small and Medium Enterprises Assistance 2017 and guiding decrees have taken effect, it is not clear what procedures the foreign investors are required to do to set up a SME startup. It is necessary to wait for specific instructions for startup formation.

Moreover, according to the Law on Investment 2020, startup investment projects are included in the beneficiaries of investment incentives as recently added. Technology and intellectual property exploitation are two of subjects which are considered as startup projects. The technology sector, before the Law on Investment 2020 takes effect, has achieved a number of tax incentives for eligible enterprises, for example: enjoying enterprise income tax at rate of 10% for 15 year or tax exemption for four years, 50% reduction of taxable for the next nine years, not subject to value added tax. Furthermore, SME startups selected for SME support project are entitled to enjoy the following assistances: (i) consultation on intellectual property, intellectual property utilization and development; (ii) procedures for technical regulations and standards, quality measurement, testing and improvement of new products and business model; (iii) technology uses and transfers; (iv) training, information, trade promotion and commercialization; (v) use of technical facilities, incubators, and common working areas according to Decree No. 39/2018/ND-CP.

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How to Set Up Company in Hanoi?

The Law on investment 2021 has a lot of investment incentive policies in economic sectors in Vietnam for foreign investors.

Foreign investors that invest in Vietnam in general and Hanoi in particular for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted Investment Registration Certificates (“IRC”) and Enterprise Registration Certificate (“ERC”). Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

The investor who wishes to apply for IRC in Hanoi, s/he need to have a possible project which is accepted by the Government (The Department of Planning and Investment of Hanoi City). The dossier on applying for IRC

For Investment Registration Certificate, the investor must prepare the dossier included:

i) An application form for execution of the investment project, including a commitment to incur all costs and risks if the project is not approved;

ii) A document about the investor’s legal status;

iii) Document(s) proving the financial capacity of the investor including at least one of the following documents: the investor’s financial statements for the last two years; commitment of a parent company to provide financial support; commitment of a financial institution to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;

iv) Proposal for the investment project including the following main contents: investor or method of investor selection, investment objectives, investment scale, investment capital and plan for raising capital, location, duration and schedule of the investment project, information about the current use of land in the location of the project and proposed demand for land use (if any), demand for labor, proposal for investment incentives, impact and socio – economic efficiency of the project and preliminary assessment of environmental impact (if any) in accordance with regulations of law on environmental protection.

If the law on construction requires formulation of a pre-feasibility study report, the investor is entitled to submit the pre-feasibility study report instead of a proposal for the investment project.

v) If the project does not require the State to allocate or lease out land or to permit land repurposing, a copy of the document regarding the land use rights or other document identifying the right to use the location for execution of the investment project is required to be submitted;

vi) Contents of the explanation for the technology to be used in the investment project if the project requires appraisal and collection of opinions on the technology in accordance with the Law on Technology Transfer;

vii) The business cooperation contract if the investment project is executed under a business cooperation contract;

viii) Other documents relating to the investment project, and requirements on the eligibility and capacity of the investor in accordance with regulations of law (if any).

After having the project, the investor needs to apply for Enterprise Registration Certificate, the dossier included:

i) An application for enterprise registration;

ii) The enterprise’s charter;

iii) A list of members of a limited liability company with two or more members or a list of general partners;

iv) A notarized copy of identity card or valid passport of individual member;

v) A notarized copy of the Enterprise Registration Certificate of the organization’s member;

vi) A notarized copy of valid identity card or passport of the organization’s legal representative;

vii) The copy of Investment Registration Certificate.

The time for applying the investment project is 15 working days and the time for applying the company is 03 working days after the date of submitting the valid dossier.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang, will help customers conveniently drafting contracts, Debt Recovery, Set up business, Foreign invest, Real estate ....

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