When planning on doing business in Vietnam, foreign investors may need to familiarize themselves with the term Investment Registration Certificate. This is one of the fundamental business licenses for foreign-owned businesses in Vietnam, along with an Enterprise Registration Certificate (ERC). In this article, we will provide you with an overview of the Investment Registration Certificate, and how to apply for it.

1. What is an Investment Registration Certificate in Vietnam?

Investment Registration Certificate Vietnam, also known as IRC Vietnam, records the investor’s registration information about an investment project in Vietnam, such as the investors’ information, the scope of business, the investment capital, and/or investment incentives, etc. The IRC concept in Vietnam is similar to Investment License in other jurisdictions.

According to the Investment Law 2020, in order to establish a company and perform business activities in Vietnam, the first step, foreign investors must register a new investment project by applying for an IRC (and/or In-Principle Approval). So, applying for the IRC is a must in order to start a foreign business in Vietnam. 

The official language used in the IRC is Vietnamese. The IRC is also an important license for a foreign business to obtain in Vietnam. Always keep the IRC safe and in good condition.

2. Which information is contained in an Investment Registration Certificate?

On an IRC, the following basic information will be set out:

• Investment project code;
• Investors’ Information;
• Name of the investment project;
• Location of the investment project, land use area;
• Objectives and scale of investment projects;
• Investment capital of an investment project (including capital contributed by investors and mobilized capital);
• Operational duration of the investment project;
• Investment project implementation schedule
• Forms of investment incentives and support and grounds and conditions for application (if any);
• Conditions for investors implementing investment projects (if any).

The investor must carry out the procedures for adjusting the IRC in case the adjustment of the investment project changes the contents of the IRC.

3. How to get an Investment Registration Certificate

Listed below are the 4 steps to get the IRC Vietnam for a foreign investment project:

Step 1. Seek advice from a lawyer

The first thing to do is to consult with your Vietnamese lawyer. This’s really important because you need to understand all the market access conditions applied to foreign investors, then evaluate the opportunity to get the authorities’ approval for each specific business.

Step 2. Prepare required documents

Please note that foreign documents need to be notarized and translated into the Vietnamese language. Some are required to have consular authentication.

Step 3. Apply for an Investment Registration Certificate

According to Article 38 of the Investment Law 2020, new investment projects with foreign capital that satisfy the following conditions will be granted an IRC:

• Not in the industries banned from investment and business according to regulations;
• Has a proper location/site to carry out the investment project;
• Meets market access conditions applied for foreign investors.

The timeframe for the assessment process is from15 working days.

Step 4. Apply for an Enterprise Registration Certificate

Upon obtaining the IRC, the investor will move to the step of applying for ERC, in order to establish a new company to implement the investment project. This licensing process is simple and fast. The timeframe for the assessment process is from 03 working days.

Read more: How to get an ERC in Vietnam

4. Investment Registration Certificate Cost

So, how much is an IRC in Vietnam? The short answer is, it depends.

The application fee and other costs depend on which kind of business and project scale. For example, the cost to apply an IRC for a manufacturing project is more expensive than for an import-export project.  Fees can also vary between local authorities and cities.

Learn more: Estimating Realistic Startup Cost in Vietnam.

5. Licensing and Management Investment Authorities

During the course of doing business here in Vietnam, a foreign investor will need to deal with the Management Investment Authority for new registration, adjustments, and termination. To be more specific:

• The Management Board of industrial parks, export processing zones, hi-tech parks, and economic zones shall issue, adjust and revoke investment registration certificates for investment projects INSIDE industrial parks, export processing zones, and industrial parks, hi-tech parks, and economic zones.
• The Department of Planning and Investment shall grant, adjust and revoke the Investment Registration Certificate for investment projects OUTSIDE industrial parks, export processing zones, hi-tech zones, economic zones, and economic zones.

6. To Sum-Up

The Investment Registration Certificate is a compulsory and important license for foreign-owned businesses in Vietnam. Its licensing process is also complex and lengthy. But don’t worry. Nova Law is here to help. Our lawyers will advise you on all legal conditions to successfully obtain an IRC for your business. We will represent the foreign investor to register the IRC, as well as other licenses, with the licensing authority.

Nova Law has been assisting foreign investors in setting up businesses in Vietnam for years. Nova Law offers a wide range of business legal services: Legal Consulting, Company Registration, Licensing, Visas, and more.

Contact our lawyers to register your Vietnam company today!