Foreign investors establish advertising service companies in Vietnam

Procedures for foreign investors to establish an advertising service companies in Vietnam

Post date: 07-04-2023

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Foreign investors establish advertising service companies in Vietnam

Foreign investors establish advertising service companies in Vietnam

 

Advertising is the employment of various means in order to present the public with the profitable products, goods and service; non-profitable products and services;

Advertising service providers are organizations that perform one, a number of, or all the phases of an advertising process under the advertising contract with the advertiser.

Foreign investors who want to set up an advertising service companies in Vietnam will carry out the procedures for setting up a business in accordance with the provisions of the Investment Law, the Enterprise Law and relevant specialized laws. related taxes, advertising, WTO commitments and international agreements, etc.

1. Commitment of Vietnam, a member of the WTO, on foreign investors to establish advertising service companies in Vietnam

Advertising services (CPC 871) are committed in the WTO Service Commitment Schedule to which Vietnam is a member, specified as follows:
“None, except: Upon accession, foreign service suppliers are permitted to establish joint venture or business cooperation contract with Vietnamese
partners who are legally authorized to do advertising services. Upon accession, joint ventures shall be allowed with foreign capital
contribution not exceeding 51% of the legal capital of the joint venture. As of 1 January 2009, there shall be no limitation on foreign
capital contribution in the joint ventures
Thus, foreign investors are not allowed to establish 100% foreign-owned advertising companies in Vietnam, but they are only allowed to establish joint ventures companies or cooperate under business cooperation contracts. The amount of capital contributed to establish a company is not limited in proportion, but only needs to meet the requirement of less than 100%.

2. Conditions for a Vietnamese partner to establish an advertising service companies in Vietnam.

According to the WTO Service Commitment Schedule, "foreign service suppliers may establish joint venture companies or enter into business cooperation contracts with Vietnamese partners who have been licensed to provide advertising services". Thus, the Vietnamese partner must satisfy the condition that the company has registered in the advertising industry and has documents proving experience in this service.

3. Procedures for setting up an advertising service company in Vietnam

a. Issuance of investment registration certificates: Investors submit dossiers at the Investment Management Agency to be granted investment certificates. Dossier for issuance of investment certificate includes:
- A written request for implementation of the investment project;
- Proposing investment projects
- An explanation of the investor”s financial capacity and supporting documents (financial statements or confirmation of the bank”s deposit balance).
- Power of attorney for a third party to do on behalf investor;
- A certified copy of the location lease contract or the Memorendum of Understand  of the location lease contract for project implementation.
- A certified true copy of consular legalization of the investor”s legal documents (the investor”s passport and the representative of the company, the business establishment document if it is an company).

b. Issuance of business registration certificate: After being granted an investment certificate, the investor submits an application at the Business Registration Office to be granted a business registration certificate. An application for a business registration certificate includes:
- An application for business registration;
- Company charter;
- List of members (for limited liability companies with two or more members); List of founding shareholders (for Joint Stock Company);
- List of authorized representatives (for institutional investors);
- Power of attorney for a third party to do on behalf of investor;
- A certified copy of the Investment Registration Certificate;
- A certified true copy of consular legalization of the investor”s legal documents (the investor”s passport and the representative of the company, the business establishment document if it is a company).

c. Tax registration: After receiving the business registration certificate, the investor will carry out the online registration procedures with the Tax Authority and pay taxes in accordance with the law.

For any information about foreign investors setting up an advertising service companies  in Vietnam, please contact us.

Lawyer Vietnam Law Firm- Vietnamese Lawyers, attorney at law, solicitor, advocate, barrister

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