CASES WHEN FOREIGN INVESTORS MUST REGISTER IF CONTRIBUTING CAPITAL, PURCHASING SHARES OR STAKES OF A ECONOMIC ORGANIZATION

Legal basis:

– Law on Investment 2020.

 

Upon contributing capital, purchasing shares or purchasing stakes of a business entity, the investor shall satisfy conditions and follow procedures for change of members or shareholders in accordance with each type of business entity.

A foreign investor shall follow procedures for registration of capital contribution or purchase of shares or stakes of a business entity prior to change of members or shareholders in one of the following cases:

  1. The capital contribution or purchase of shares or stakes increases the ownership ratio by foreign investors in a business entity conducting business in the business lines allowed in market with conditions applied to foreign investors.
  2. The capital contribution or purchase of shares or stakes results in a foreign investor, a business entity with foreign investors, a partnership that the majority of the general partners are foreigners holding over 50% of the charter capital of the economic organization in the following cases: 

– The charter capital ownership ratio by the foreign investor is increased from less than or equal to 50% to over 50%; 

– The charter capital ownership by the foreign investor is increased while such foreign investor is holding over 50% of the charter capital of the business entity.

  1. The foreign investor that contributes capital, purchases shares or stakes of a business entity has a certificate of rights to use land on an island or in a border or coastal commune; in a coastal commune; in another area that affects national defense and security.