To invest or open a business in Vietnam, investors must follow several procedures, including obtaining licenses, opening a bank account, submitting tax documents, and contributing capital within 90 days from the date of receiving the enterprise registration certificate, so on.
All these steps are important, but today I would like to highlight a particularly critical issue: capital contribution within the required 90-day period.
It is essential to alert all investors to pay close attention to this requirement, as failure to comply can seriously impact your business and result in significant penalties.
According to Decree 122/2021 – Penalties for Administrative Violations Against Regulations on Planning and Investment,
Clause 3: A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for the following violations.
In some cases, depending on the situation, authorities may impose a higher fine.
So, if you transfer the capital into your capital account in Vietnam after the 90-day deadline, counted from the date of receiving the Enterprise Registration Certificate, your business may face the following consequences:
- A financial penalty as mentioned above.
- Delays in business activities, as banks may refuse to process capital contributions until you obtain an extension of your Investment Registration Certificate.
- In the worst-case scenario, your company may risk having its licenses—such as the Investment License or Business License—revoked if it fails to comply with penalties or other regulatory requirements.
We hope this information is helpful as you prepare to do business in Vietnam. To ensure full compliance with all legal requirements, it is highly recommended to work with a qualified lawyer or consultancy firm who can guide you before and after your business launch.
At HT—short for Honesty and Trust—we are dedicated to delivering genuine value to our clients. Your success is our success, and we are committed to minimizing any potential risks to your business.
If you have any questions about this topic or any legal matters in Vietnam, feel free to contact us.
To save time on researching procedures, filling out forms, notarizing, and waiting to submit documents, you can contact HT for consultation and assistance for Investment
Contact us at:
Email: hue.truong@htlaw.vn
Phone: +84 935 439 454.