DOES INCREASE INVESTMENT PROJECT CAPITAL NEED TO BE ADJUSTED TO THE CURRENT INVESTMENT REGISTRATION CERTIFICATE?

Legal basis:

  • Investment Law 2020;
  • Decree No. 112/2021/ND-CP.

 

Does increasing investment project capital need to adjust the investment registration certificate according to current regulations?

According to Article 40 of the Investment Law 2020, the content of the Investment Registration Certificate includes:

  • Name of the investment project.
  • Investors.
  • Investment project code.
  • Location and land area of the investment project.
  • Objectives and scale of the investment projects.
  • Capital investment in the investment project (including the investor’s contributed capital and raised capital).
  • Operational term of the investment project.
  • Duration of the investment project.
  • Forms of incentives and investment support and grounds and conditions for application (if any).

According to Article 41 of the Investment Law 2020, during the implementation of an investment project, the investor shall carry out procedures to adjust the Investment Registration Certificate in case the adjustment of the investment project changes the content of the Investment Registration Certificate.

Thus, one of the mandatory contents that must be shown on the Investment Registration Certificate is the capital of the investment project (including the investor’s contributed capital and mobilized capital). Therefore, if an investor needs to increase the capital of the investment project, he or she must carry out procedures to adjust the Investment Registration Certificate according to regulations.

How much fine can be imposed for increasing the capital of an investment project without adjusting the investment registration certificate?

According to Clause 2, Article 17 of Decree No. 122/2021/ND-CP, if an organization increases investment project capital without adjusting the Investment Registration Certificate, it may be fined from VND 70,000,000 to VND 100,000,000 and forced to carry out procedures to adjust the Investment Registration Certificate for the above violations.

According to Clause 2, Article 4 of Decree No. 122/2021/ND-CP, the fine for not adjusting the Investment Registration Certificate for individuals is equal to a half of the fine for organizations, which is from VND 35,000,000 to VND 50,000,000.