VI What is an investment registration certificate? When is it necessary to apply for an investment registration certificate? Why is an investment registration certificate required? What are the procedures for applying for an investment registration certificate and the duration of an investment registration certificate? Through today’s article, let’s learn about this issue with Pham Consult!
1. What is an investment registration certificate?
An investment registration certificate (IRC) is a type of license issued by competent authorities in Vietnam to foreign organizations and individuals with investment capital.
According to Clause 11, Article 3 of the Investment Law 2020, an investment registration certificate is a paper or electronic document recording the investor’s registration information about the investment project. This certificate certifies that the organization or individual has been permitted to carry out investment activities in Vietnam.
2. But when is it necessary to apply for an Investment Registration Certificate?
According to the provisions of Article 37 of the Investment Law 2020, the cases that must and do not require an Investment Registration Certificate include:
– Investment projects of foreign investors;
– Investment projects of economic organizations specified in Clause 1, Article 23 of the Investment Law 2020.
3. Why is it necessary to apply for an Investment Registration Certificate?
When implementing investment projects in Vietnam, foreign investors are required to apply for an Investment Registration Certificate for the following reasons:
– Registering an investment certificate is to help the State manage the investment of foreign investors;
– It is a necessary condition for the investment project to be able to operate normally;
– Is a legal basis to prove that the investment project is permitted to operate legally by the Vietnamese State. Helps investors feel secure when investing in the project;
– Licensed projects will enjoy incentives and support from the Government.
In general, applying for an investment certificate is mandatory for business activities with foreign capital elements, to ensure that the State can properly manage the activities as well as foreign investment capital in Vietnam.
4. Contents of the Investment Registration Certificate
According to Article 40 of the Investment Law 2020, the contents of the Investment Registration Certificate include, the Investment Registration Certificate records the following information of the investment project:
– Name of the investment project.
– Investor.
– Investment project code.
– Location of the investment project, land area used.
– Objectives and scale of the investment project.
– Investment capital of the investment project, (including the investor’s contributed capital and mobilized capital).
– Duration of the investment project.
– Progress of the investment project implementation, including:
+ Progress of capital contribution and mobilization of capital sources.
+ Progress of implementing the main operational objectives of the investment project. In case the investment project is divided into phases, the progress of each phase must be specified.
– Forms of incentives, investment support and basis, conditions for application, (if any).
– Conditions for investors implementing the investment project, (if any).
5. Procedures for applying for an Investment Certificate
Article 35 of Decree 31/2021/ND-CP stipulates the procedures for granting and adjusting the Investment Registration Certificate for projects subject to investment policy approval as follows:
– Procedures for granting and adjusting the Investment Registration Certificate for investment projects approved for investment policy at the same time as investor approval and subject to issuance of an Investment Registration Certificate as follows:
+ Based on the Decision on investment policy approval, Decision on investment policy adjustment approval, the investment registration agency shall grant and adjust the Investment Registration Certificate within 05 working days from the date of receipt of the Decision on investment policy approval, Decision on investment policy adjustment approval;
+ For investment projects under the authority of 02 or more provincial People’s Committees to approve the investment policy, based on the proposal of the Ministry of Planning and Investment, the Prime Minister shall assign the Department of Planning and Investment of a province or centrally-run city where the investor implements the investment project, locates or plans to locate an executive office to implement the investment project to issue an Investment Registration Certificate.
– For investment projects that have been approved for investment policy and the investor has won the auction or bid;
Investment projects subject to investor approval under the provisions of Clause 3, Article 29 of the Investment Law and subject to issuance of an Investment Registration Certificate, the investor shall submit a written request for issuance of an Investment Registration Certificate to the investment registration agency to be granted an Investment Registration Certificate within 05 working days from the date the investment registration agency receives the written request.
– For investment projects in which the Economic Zone Management Board approves the investor, the Economic Zone Management Board shall decide to approve the investor at the same time as issuing the Investment Registration Certificate. – For projects not subject to issuance of an Investment Registration Certificate, if there is a need to issue an Investment Registration Certificate, the investor shall submit a written request for issuance of an Investment Registration Certificate, a valid copy of the Decision approving the investment policy and a valid copy of the Decision approving the investor
6. How long is the validity period of the Investment Registration Certificate?
The validity period of the Investment Registration Certificate depends on the duration of the investment project. Accordingly, the duration of the Investment Registration Certificate must not exceed the duration of the investment project. Therefore, based on the Investment Law, the maximum duration of the Investment Registration Certificate is stipulated as follows:
– Not more than 70 years for investment projects in economic zones.
– Not more than 50 years for investment projects outside economic zones.
– Not more than 70 years for investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery.
The validity period of the Investment Registration Certificate depends on the duration of the investment project. Accordingly, the duration of the Investment Registration Certificate must not exceed the duration of the investment project. Therefore, based on the Investment Law, the maximum duration of the Investment Registration Certificate is stipulated as follows:
– Not more than 70 years for investment projects in economic zones.
– Not more than 50 years for investment projects outside economic zones.
– Not more than 70 years for investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery.
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