The guide of establishing of 100% foreign owned company in Vietnam in fitness business.
Preliminary advice of ABB Law:
Firstly, on the form of investment:
Foreign investors, when establishing a project in Vietnam, must establish an economic organization managing the project. Corresponding to the two types of licenses you receive are: Certificate of investment registration (IRC) and certificate of business registration (ERC).
Secondly, on investment capital for the project implementation:
Investment capital is the money and the other assets to conduct investment activities. Investment capital includes capital contributed by investors and mobilized capital. Mobilized capital may come from various sources such as mobilizing from banks, investors themselves or from other organizations and individuals. Schedule of capital contribution and capital mobilization proposed by the investor is shown on the investment registration certificate.
The investors have to prove financing (including both contributed capital and loan) to participate in project establishment in Vietnam.
After being granted an IRC and ERC, the investors have to open a direct investment capital account at a functional bank in Vietnam to transfer contributed capital to the account of direct investment capital within the prescribed time limit.
Thirdly, on the business lines
Foreign-invested enterprises are only allowed to do business in the fields which are not in violation of the provisions of the law of Vietnam and in accordance with international treaties. The business line of investors is setting up your own gym in accordance with the franchise right. This business line is “Sports and recreation education” in Vietnam standard industrial classification. Singapore and United Kingdom were members of WTO but business line “Sports and recreation education” is unbound. The Vietnamese Law has not specified this business yet. Therefore, the investment registration agency may send a written request to the Minstry of Planning and Investment and the branch- managing ministry.
In addition, to conduct this business line, the investors have to apply for a Certificate of sport business conditions issued by provincial People’s Committee that satisfies the conditions according to the Law on Physical Training and Sports for Sports business of sports enterprises.