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Thứ 5, Ngày 14/12/2017, 11:00
Question 34
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14/12/2017

​New investors investing in IPs (not VSIP) carry out the initial two licensing procedures, namely the Investment Certificate issued by the Binh Duong Industrial Zones Authority and Business Registration Certificate issued by the Department of Planning and Investment.

In investment certificate, Binh Duong Industrial Zones Authority allows chartered capital contribution in 2 years, however, Department of Planning and Investment requests 90 days to complete capital contribution procedures.

Please ask the business based on which authority to implement?

Answer by Department of Planning & Investment and Binh Duong Industrial Zones Authority:

Regarding issues related to charter capital in Business Registration Certificate issued by the Department of Planning and Investment and investment capital for project implementation in Investment Registration Certificate issued by the Binh Duong Industrial Zones Authority, we would like to reply as follows:

- Regarding the difference between Charter Capital and Project Contribution Capital:

Pursuant to Clause 29, Article 4 of Enterprise Law No.68/2014/QH13 dated 26th November 2014, "Charter capital is the total value of assets contributed or committed to contribute when establishing a company limited or a partnership; is the total par value of shares purchased or have been registered to purchase when establishing the business for joint-stock companies. "

Pursuant to Clause 13, Article 4 of Enterprise Law No.68/2014/ QH13 dated 26 November 2014, "Capital contribution is the contribution of assets to form the charter capital of the company. Capital contribution includes capital contribution to establish a company or additional capital of the established company".

Pursuant to Clause 18, Article 3 of the Investment Law No.67/2014/QH13 dated 26th November 2014, "Investment capital is the money and other assets to carry out business investment activities".

Pursuant to Clause 3, Article 44 of the Government's Decree No.118/2015/ ND-CP of November 12nd 2015 detailing and guiding the implementation of a number of articles of the Investment Law, "Charter capital of economic organization by foreign investors established to implement investment projects, not necessarily with investment capital of investment projects. An economic organization established under the provisions of Point b, Clause 1, this contributes capital and mobilizes other sources of capital to implement investment projects according to schedule prescribed in investment registration certificate".

Pursuant to above provisions, it is conceivable that, charter capital is the amount of capital that member of company commits to contribute to the company for a period of time and is recorded in Charter of the company. Meanwhile, investment capital is prescribed for each investment project of company, including capital contribution of investors for the project.

Charter capital for establishment of company and contribution capital for investment project implementation are completely different.

- Regarding to prescribe time limit for Charter capital and contribution capital for project implementation:

Under the provisions of Enterprise Law No.68/2014/QH13 dated 26th November 2014, the charter capital must be fully contributed with right type of assets as committed upon establishment registration of company within 90 days, from the issued date of Business Registration Certificate.

Under the provisions of Investment Law No.67/2014/QH13 dated 26th November 2014, for contribution capital for project implementation, the investment registration office will be based on the duration of investors committed to contribute capital to be recorded in Investment Registration Certificate.

Therefore, enterprises and investors must base themselves on the time committed for contribution recorded in Business Registration Certificate and Investment Registration Certificate to comply with the regulations.

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