Key Steps for Obtaining an IRC Certificate in Vietnam

An IRC investment registration certificate acts as a fundamental legal instrument, documenting an investor’s project registration in Vietnam and affirming their lawful investment rights.

Introduction to IRC Investment Registration Certificate

The IRC investment registration certificate is associated with the sanctioning of projects for investors in Vietnam. It may be offered in both paper and electronic versions, in alignment with the 2020 Investment Law, ensuring the lawful rights of such investments. This certificate is vital for domestic and international investors alike.

The Investment Registration Certificate (IRC) plays a critical role in the execution of investment projects across Vietnam. As per the 2020 Investment Law guidelines, it serves as a verified document confirming the registration details of an investor, acting as a prerequisite for project establishment. This certificate is issued by pertinent authorities such as the Department of Planning and Investment or management entities within industrial or economic zones.

Core Elements in an IRC

Each IRC must delineate mandated information per Article 40 of the Investment Law 2020, which covers:

• Name of the project and its investor.
• Code for the investment project.
• Designated location and land magnitude for the project.
• Objectives, scope, and financial structure, inclusive of raised and contributed capital.
• Project’s operational duration and implementation timeline.

Projects Necessitating an IRC

The essential cases for an IRC process are:

• Investment ventures by foreign stakeholders.
• Projects initiated by economic bodies with foreign investment exceeding 50% of charter capital.
• Partnership firms largely controlled by foreign nationals.

Other projects falling outside these criteria typically don’t need an IRC unless foreign investment engagement is involved.

Validity Duration of the IRC

This document can be presented in paper or digital format, with validity typically aligning with project timelines. Changes in initial registration details, such as addresses or investor data, necessitate adjustment procedures.

The IRC serves as a pivotal regulatory document, endorsing project recognition and oversight under Vietnamese laws, providing a framework for sustainable project advancement for investors in the country.

Situations Necessitating an IRC Certificate

Pursuant to Article 37 of the 2020 Investment Law, scenarios where an IRC is mandatory include projects by foreign investors, organizations with foreign entities holding over 50% of the capital, or instances where foreign individuals have a principal stake.

In Vietnam’s construction and energy domain, procuring an Investment Certificate is significant in validating legal grounds for foreign-invested projects and related organization endeavors.

• Foreign Investor Projects: Any ventures with foreign investor involvement must secure an Investment Certificate, acting as a critical compliance step with 2020 Investment Law stipulations.
• Projects by Economic Organizations with Foreign Investment Capital: According to the 2020 Investment Law, institutions where foreign capital surpasses 50% must adhere to IRC processes. This regulation applies to various scenarios, including foreign-dominated partnerships or organizations with majority foreign stakeholdings.
• General IRC Issuance Criteria: Projects should not be enlisted under prohibited sectors per national and international treaties Vietnam adheres to. Projects also require a well-defined execution site compatible with local plans, in addition to meeting land and workforce criteria.
• IRC Issuance Timeframe: The IRC process typically concludes within 15 days from submission of a valid dossier to authorities, facilitating optimal conditions for foreign investors.
• IRC Exceptions: Some economic organizations outside outlined criteria as per Article 37 of the 2020 Investment Law do not require an IRC. Details remain unspecified within this documentation.

These regulations are designed to uphold the rights and duties of parties in an investment endeavor, prompting legally and sustainably advantageous investments in Vietnam.

Application File and Procedure for IRC

Investors should organize their application as specified in Clause 1, Article 33 of the Investment Law, filed with the investment registration authority. For multi-provincial projects, a solitary Department of Planning and Investment will manage submissions. Certification follows upon meeting conditions within 15 days.

Streamlining the Certificate of Investment Registration (IRC) demands meticulous file preparation and execution understanding per Investment Law stipulations. A comprehensive guidance follows deconstructing this procedure:

Essential Investment Dossier

Investors must compile the subsequent documents for IRC eligibility:

• Project Execution Proposal: It highlights the investor’s agreement to absorb costs and risks if the project falls through.
• Proof of Investor’s Legal Status:
• Individuals: Copy of ID, citizenship, or passport.
• Organizations: Copy of business registration or equivalent legal document.
• Proof of Financial Capacity: Includes a financial statement from the past two years or a pledge of financial backing.
• Investment Project Proposal: Detailed objectives, scope, whole investment capital, site, timeline, land and human resources necessities.
• Land Use Right Documents: Projects using land necessitate submission of usage rights or lease documentation.
• Technology Details: Pertinent to projects needing technological assessment.
• Business Cooperation Contract (BCC): Needed for investments under BCC terms.
• Power of Attorney: Necessary if the filer does not directly represent the investor.

IRC Receipt Conditions

Projects seeking IRC must meet these stipulated conditions:

• Projects must not fall under banned or constrained investment sectors per Vietnam or global treaties involved.
• A clear, legally substantiated locale must be evident, confirmed through land use rights or legitimate leases.
• Compliant with wider planning frameworks at varying governance levels.
• Adheres to investment density and labor usage laws dictated by the regional Provincial People’s Committee.
• Particular entry conditions for foreign investors are satisfied.

IRC Application Procedure

The procedural completion includes:

1. Assemble dossier: As per the prescribed document checklist, ensuring completeness and correctness.
2. Submit dossier: IRC applications should be filed at the local Department of Planning and Investment (DPI) pertaining to the project locale. Some provinces offer online submissions, affirm methodology with local DPI.
3. Review dossier: DPI will scrutinize the dossier within 15 to 45 days, potentially requesting further details if needed.
4. Certificate issuance: Compliance with criteria results in DPI distributing the Investment Registration Certificate, a precursor for ensuing business processes.

Comprehending IRC dossier prerequisites and procedural nuances not only accelerates file processing but guarantees project legality and successful execution.

Criteria for IRC Issuance

Decree 31/2021/ND-CP Article 36 outlines IRC issuance preconditions such as completing a valid file, outside the realm of investment policy approval, alongside Investment Law stipulations.

To obtain an IRC in Vietnam, compliance with Decree 31/2021/ND-CP and Investment Law is necessary. Essential conditions include:

• Permissible investment sectors: The project shouldn’t be enlisted as prohibited per Vietnam’s laws and international engagements, aligning with overarching investment paradigms.
• Legitimate project venue: Organizations must substantiate land usage rights or leasing agreements. A defined locale facilitates project undertakings.
• Planning Consistency: The project must parallel national, regional, and targeted area frameworks, reinforcing harmonious strategic advancement.
• Correspondence with investment dynamics and workforce parameters: Per Provincial Committee criteria, projects ought to satisfy investment volume and labor quantity metrics.
• Foreign access provision: Standards set by investment law and international treaties applicable to foreign investors must be observed.

IRC-Needed Projects

Categories necessitating IRC cover:

• Projects where foreign investors control beyond 50% charter capital.
• Partnership entities dominated by foreign individual participation.
• Economic organizations with additional organizational ownership surpassing 50% charter capital.
• Entities dominated by foreign stakeholders or entities commanding 50% or more.

IRC Issuance Procedure

The pertinent investment authority allocates the Investment Certificate upon satisfying dossier and project conditions, guided by the 2020 Investment Law and relevant documents, spelling out project specifics, stakeholders, project code, execution site, and business domains.

Details within the IRC Certificate

An IRC investment certificate outlines project name, investor, project code, location, investment scale, capital, duration, and progress conforming to Article 40 of the 2020 Investment Law.

In Vietnamese ventures, the IRC certificate serves as a vital document, furnishing essential project data. To foster clarity and proficiency, the contents of the IRC should be articulated comprehensively and completely.

• Project Title: A unique name is mandated for project clarity in official processes and documentation.
• Investors: Details the party or entity executing the project, establishing clear roles and responsibilities.
• Investigation Project Code: This idiosyncratic code facilitates project monitoring in state systems.
• Location and Land Utilization: Identification of space and land usage for stringent management and planning purposes.
• Objectives and Dimensions: Describes project’s aim and operational scope for impact assessment and potential realization.
• Financial Outlay: Includes owned and external financial provisions confirming a solid, transparent plan.
• Operational Timeframe: Stipulates project timeline for comprehensive long-run strategy planning.
• Execution Timeline: Adheres to the schedule of capital injection, mobilization, and project aim fulfillment.

Article 39 of the 2014 Investment Law likewise identifies any project-specific incentives and conditions in the registration certificate. The IRC issuance process demands adherence to stringent procedural and conditional grounds, typically involving complete file submission to authorities for evaluation. Adjustments to ensure currency with changing project particulars are critical, with issuance timelines principally contingent on dossier completion.

Authorities Issuing IRC Certificates

The responsibility for IRC certificate issuance falls to the provincial Department of Planning and Investment or the Management Board of Industrial Zones, export processing zones, subject to the specific scale and type of the project. Exceptional projects might necessitate higher management clearance.

In light of Vietnam’s investment milieu in construction initiatives, grasping the certificate issuance authority is imperative for streamlined operations. Provisions in the 2020 Investment Law and accompanying statutes delineate the agencies responsible for certificate distribution.

• Management Boards for Industrial Zones, Export Zones, High-tech Parks: Oversee certificate allocation, modification, or withdrawal in these precincts, encompassing infrastructural development and commerce unless diverging regulations apply.
• Department of Planning and Investment: Predominantly for projects outside board-run zones, it handles certificates for projects in unmanaged industrial settings and local investment applications.
• Investment registration entity tasked with certificate concerns: In specific instances, this entity assumes responsibility except for projects needing approval from sovereign or prime ministerial levels.

Assigned agencies not only dispense certificates but manage modifications or withdrawals aligned to their duties. Proficiency in understanding the 2020 Investment Law and allocating certificate authority is vital for proactive investment approaches, especially within energy and electrical ventures.

The investment certificate acts as an enforceable basis for domestic and overseas investors to execute projects legally. To enable hassle-free interactions and bypass legal pitfalls, consulting the exact competent body is crucial.

Securing an IRC investment registration certificate is crucial to actualize investment plans in Vietnam, assuring regulatory adherence and expanding opportunities for international investors.

Reach out to QuangAnhcons at Hotline: +84 9 1975 8191 for exhaustive guidance on IRC certificate application procedures.

QuangAnhcons pledges to facilitate all phases of the IRC filing, from paperwork assembly to proceedings, guaranteeing the seamless progress of your investment projects.