23 Tháng Mười Một, 2023

Procedure for opening an indirect investment capital account in Viet Nam

Question: I am a foreigner, not residing in Viet Nam but in Singapore. I start to plan to invest capital in a company in Viet Nam. But in order for the company to operate, it needs to be transferred a source of money to carry out the business. So in my case, do I need to open an investment capital account in Viet Nam? If so, what do I need to do?

Nghiep Thanh Law would like to answer your question as follows:

Based on the information you provided, it can be seen that you are in the form of indirect investment, and because you are a non-resident foreign investor and carry out investment activities. indirectly in Viet Nam. So you have to open a capital account, exactly called an indirect investment capital account (IDICA).

So what is the procedure?

Currently, according to the provisions of Circular 05/2014/TT-NHNN, it is not stated clearly what exact type of documents required in specific procedures that are carried out in accordance with the regulations of the bank allowed. In which, banks allowed are commercial banks, foreign bank branches are allowed to do business and provide foreign exchange services.

“Is a Viet Nam dong payment account opened by a foreign investor at a bank allowed to conduct income and expenditure transactions related to foreign indirect investment activities in Viet Nam.”

You need to pay attention to the principles to understand how to use the IDICA, that is:

– All investment activities must be done in Viet Nam dong and must go through 01 IDICA opened at a bank allowed. .

However, in terms of a basic dossier, you should provide:

(1) Documents to show that the organization is legally established and operating. Specifically, the establishment decision, operation license, business registration certificate, etc.
(2) A valid identity card/citizen identity card/passport of the legal representative of the organization
(3) The decision on appointing a chief accountant (in charge of accounting) together with identity card/citizen identity card/passport (in case it requires the signature of the chief accountant or the person in charge of accounting on accounting documents of transactions with the bank)

The content above is the advice on “Procedure for opening an indirect investment capital account in Viet Nam”

You may refer to the form of direct investment through Procedures for opening a direct investment capital account in Viet Nam

If you find the article useful, let’s spread this knowledge to the Community by clicking “Share: this article.

Nghiep Thanh Law thank you for reading and sharing. We look forward to receiving your feedback and suggestions.

Translator: Le Khanh Linh

Content writer: Nguyen Linh Chi

Instructor: Nguyen Minh Co

Admin: Lawyer Thuan

Share this post:

Discover more articles