CIRCUMSTANCES THAT NEED TO ADJUST IRC

 

In the market economy, investment activities become more popular and talked about. In particular, foreign investment plays an important role, being a strong lever for economic development, leading to the development of many other aspects of society. But not all foreign investors can arbitrarily invest in Vietnam, investors can only invest when they have investment registration certificates (also known as IRC – Investment Registration Certificate). The IRC is one of the important documents to ensure legal investment activities in Vietnam, showing the basic contents of an investment project. In fact, investment projects do not always develop according to the investor’s initial plan as previously registered in the IRC. So what changes need to be adjusted to IRC, what is the adjustment process? Let’s find out with Pham Consult in the article below.

What is IRC?

According to the provisions of Clause 11 Article 3 of the Law on Investment in 2020, an IRC means a physical or electronic document bearing information registered by an investor about an investment project.

The IRC not only has the effect of proving that the investor can implement the project, but also serves as the basis for the competent authorities to check whether the investor has implemented the project in accordance with the project’s contents, duaration, implementation progress or not as well as purpose of foreign individuals and organizations applying for IRC to legally invest in Vietnam.

When implementing investment projects and establishing foreign-owned companies, investors are required to have an IRC, which helps the State to well manage operations as well as foreign investment capital into Vietnam

Circumstance that need to adjust IRC

Pursuant to the provisions of Clause 2, Article 41 of the Investment Law 2020:

“Article 41. Adjustment of investment projects

…

2. The investor shall carry out procedures for adjusting the Investment Registration Certificate in case the adjustment of the investment project changes the contents of the Investment Registration Certificate.”

 

 

Accordingly, leading to Article 40 of the Investment Law 2020 stipulates the contents of IRC as follows:

“Article 40. Contents of Investment Registration Certificate

1. Name of the investment project.
2. The investor.
3. Investment project code.
4. Location and land area of the investment project.
5. Objectives and scale of the project.
6. Capital investment in the investment project (including the investor’s contributed capital and raised capital).
7. Duration of the investment project.
8. Project execution schedule, including:
9. a) Capital contribution and capital raising schedule;
10. b) Schedule of achievement of primary operational objectives of the investment project; execution schedule of each stage (if the project is divided into multiple stages);
11. Investment incentives or investment assistance, and bases or conditions for application thereof (if any).
12. Conditions applied to the investor executing the investment project (if any)”

Thus, if there is a change in the contents of Article 40 of the Law on Investment, the investor needs to carry out procedures for adjusting the IRC.

Adjustment process of IRC

Step 1: Prepare investment IRC adjustment documents

An IRC adjustment profile typically includes:

• Written request for adjustment of investment project (Form AI11.h issued together with Circular No. 03/2021/TT-BKHĐT);
• Report on implementation of investment projects up to the time of adjustment (Form AI12 issued together with Circular No. 03/2021/TT-BKHDT);
• Decision and valid copy of meeting minutes of the Members’ Council/General Meeting of Shareholders/owner of the economic organization implementing the investment project on the adjustment of the investment project;
• Explain or provide documentation related to the adjustment.

Step 2: Submit your application

Location: Depending on the investment project, the investor shall submit an application at one of the following competent agencies:

• Management Board of industrial parks, export processing zones, hi-tech parks and economic zones for investment projects in industrial parks, export processing zones, hi-tech parks, economic zones, etc
• Department of Planning and Investment where investors implement investment projects for investment projects outside industrial parks, export processing zones, high-tech zones, economic zones, etc.
• Investment registration agency.

For investment projects that are not subject to investment policy approval, investors can choose to submit an application for issuance and adjustment of a paper IRC or to submit an online application on the national investment information system according to regulations. one of two forms: using digital signature or not using digital signature (Clause 1, Article 39 of Decree 31/2021/ND-CP).

Note: Before carrying out the procedures for granting and adjusting IRCs, investors must declare online information about investment projects on the National Investment Information System. Within 15 days from the date of online declaration, the investor shall submit the application for issuance and adjustment of the IRC to the investment registration agency. If the online application is not received by the investment registration agency within 15 days from the date of online declaration, the online declaration will no longer be valid (Clause 1, Article 38 of Decree No. 31/2021/ND-CP).

Time limit for settlement: Depending on the type of investment project and the content of adjustment, the time limit for settling IRC changes is also different.

Fees and charges: No

Step 3: Get the result

In case the dossier is valid, the Competent Authority will issue the adjusted IRC to the Investor.

In case of refusal to adjust the IRC, the Regulating Authority must notify the Investor in writing and clearly state the reasons therefor.

Above is information about the regulations governing the IRC. However, in reality, administrative procedures in the investment field are often complicated and language barriers make it difficult for foreign investors to do it themselves. Pham Consult with many years of experience in this field is committed to providing professional consulting services on fast, efficient and quality IRC adjustment registration to help customers save time, money as well as peace of mind. sustainable development of its investment.

Pham Consult is a unit specializing in providing tax consulting services, financial consulting, accounting services, salary preparation and payment. Contact us via hotline: (84-28) 3930 2487 or our Facebook if you need assistance.