I. Legal Basis

The Investment Law 2020 of Vietnam (effective from January 1, 2021) regulates business investment activities in Vietnam, providing guidelines on investment conditions, conditional business sectors, and administrative procedures related to both domestic and foreign investments. One of the key updates in this Law is the clarification and update of the list of prohibited or restricted sectors for investment.

Circular 06/2019/TT-NHNN (issued by the State Bank of Vietnam) sets out criteria and conditions for lending and credit extension by credit institutions in Vietnam, effective from September 3, 2019. This circular focuses on controlling credit, loan conditions, and ensuring transparency and safety within the banking system.

II. Concepts of IRC, Direct Investment Capital Accounts, and Company Registration Services

IRC stands for Investment Registration Certificate. According to Clause 11, Article 3 of the Investment Law 2020, the IRC is a written or electronic document that records the investor’s registration information regarding the investment project.

According to Clause 5, Article 3 of Circular 06/2019/TT-NHNN, a direct investment capital account is a payment account in foreign currency or Vietnamese Dong opened by a foreign-invested enterprise or foreign investor at an authorized bank to carry out transactions related to direct foreign investment activities in Vietnam.

Company registration services refer to a type of service specializing in providing consultation and support to businesses regarding all legal matters, including procedures and paperwork required for company establishment.

III. Do foreign investors need to use a direct investment capital account to pay for company registration services before being granted an IRC?

According to Article 8 of Circular 06/2019/TT-NHNN, before being granted an Investment Registration Certificate (IRC), foreign investors do not need to use a direct investment capital account to pay for company registration services. At this stage, foreign investors are allowed to transfer money from abroad or from their payment account in foreign currency or Vietnamese Dong opened at an authorized bank in Vietnam to legally pay for the company registration service during the investment preparation phase in Vietnam.

IV. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm

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