ESTABLISHMENT OF COMPANY WITH FOREIGN ELECTRICAL EDUCATION BUSINESS

ESTABLISHING A COMPANY WITH FOREIGN ELEMENTS DOING BUSINESS IN EDUCATION AND TRAINING IN VIETNAM

With the view that "Education and training are top national policies" is emphasized in Resolution No. 04-NQ/TW of the Government of Vietnam. Education is always a priority and focused on development in Vietnam.

The policy focuses on improving high-quality human resources to meet domestic and international work needs. Investment in education has become a matter of concern and is a potential field, attracting many foreign investors. In this industry - International treaties that Vietnam participates in and Vietnamese laws have policies to support and create conditions for foreign investors to invest and do business in Vietnam.

Understanding that the Education and Training field belongs to the group of conditional business investment industries and professions, the procedures and processes are somewhat complicated and especially more difficult for foreign investors. Through this article ABA VISA Share useful information about legal procedures for foreign investors

ESTABLISHING A COMPANY WITH FOREIGN ELEMENTS DOING BUSINESS IN EDUCATION AND TRAINING.

Legal basis

– WTO, AFAS, AANZFTA;

– Investment Law 2020;

– Enterprise Law 2020;

– Decree 86/2018/ND-CP regulating foreign cooperation and investment in the field of education.

– Law on Enterprises 2020 No. 59/2020/QH14 issued on June 17, 2020, effective from January 1, 2021;

– Decree 01/2021/ND-CP on business registration;

– Education Law 2019;

– Circular 04/2020/TT-BGDDT detailing a number of articles of Decree No. 86/2018/ND-CP regulating foreign cooperation and investment in the field of education.

1. CONDITIONS FOR ESTABLISHING A COMPANY WITH FOREIGN ELEMENTS DOING BUSINESS IN EDUCATION

1.1. Regulations on investment capital when establishing foreign-invested educational institutions:

In Decree 86/2018/ND-CP, Article 35 stipulates as follows:

➠ Establishing a foreign-invested company in education for preschool education establishments must have an investment of at least 30 million VND/child (excluding land use costs).

➠ Investment projects to establish foreign-invested companies in education for general education establishments must have an investment rate of at least 50 million VND/student (excluding land use costs). ). The minimum total investment capital is calculated based on the time of highest expected scale, but not less than 50 billion VND.

➠ Establishing a short-term training and fostering facility must have an investment of at least 20 million VND/student.

➠ Establishing a higher education institution must have a total investment capital of at least 1,000 billion VND.

➠ Establishing a branch of a foreign-invested higher education institution in Vietnam must have a minimum investment capital of 250 billion VND. By the time of appraisal to allow the establishment of a university branch, the value Investment must be over 150 billion VND.

➠ For foreign-invested educational institutions that do not build new facilities but only rent them or have the Vietnamese party contribute capital with existing facilities to deploy operations, the investment level is low. Must reach 70% at the above levels.

1.2. Regulations on facilities and equipment when establishing foreign-invested educational institutions:

1.2.1. For short-term training and refresher establishments:

• Have classrooms with appropriate lighting, tables, chairs, and teaching equipment;
• There is an area used for studying and teaching; at least 2.5 m2/learner for short-term training and refresher establishments;
• There are offices of the board of directors, leaders, teachers' room, and library.

1.2.2. For preschool educational establishments:

• The school is concentrated in one location, with a good environment, with an average number of children of at least 08 m2/child for cities and towns and 12 m2/child for rural areas;
• There are classrooms, children's bedrooms and appropriate function rooms;
• There are school offices, administrators' offices, administrative offices, health care rooms, security rooms...;
• Have a clean water system, drainage system, restroom, and sanitary equipment to ensure safety and cleanliness;
• There is a kitchen organized according to a one-way operating process with appropriate equipment, ensuring food hygiene and safety;
• There is a playground and walls surrounding the school area.
• There are trees in the school area.

1.2.3. For general education establishments:

• The school is concentrated in one location, with a good environment;
• Have an area used for learning and teaching that ensures an average of at least 2.5 m2/student;
• There are school offices, administrators, teachers' rooms, and meeting rooms;
• There are subject classrooms, libraries, tables, chairs, equipment, and teaching aids, ensuring prescribed standards;
• There is a multi-purpose gym, an art education room, an information technology room, a room to support the education of disabled students, and a school health room;
• There is a clean water system and appropriate toilets;
• There is a playground, practice area, and parking area with an area at least equal to 30% of the total area of the school.

1.2.4. For higher education institutions and branches of foreign-invested higher education institutions in Vietnam:

• Average land area is at least 25 m2/student;
• The average house construction area is at least 09 m2/student;
• There are a sufficient number of lecture halls, classrooms, and appropriate function rooms;
• There are enough offices, administrative areas and administrators;
• There are halls, libraries, laboratories, internships, practice facilities and other facilities;
• There are restaurants, construction works serving entertainment, sports, cultural activities and medical works;

There is a technical construction area, garage for cars, motorbikes and bicycles.

1.3. Regulations on educational programs implemented at foreign-invested educational institutions:

Educational programs implemented at foreign-invested educational establishments must demonstrate educational goals and must not contain content that is harmful to national defense, national security, or community interests; Do not spread religion or distort history; does not adversely affect Vietnamese culture, ethics, customs and traditions and must ensure transfer conditions between educational levels and training levels.

Foreign-invested educational institutions are allowed to teach:

• Vietnam's educational program according to the provisions of Vietnamese law;
• Foreign preschool education programs and general education programs for educational establishments specified in the Decree;
• Foreign short-term training and refresher programs; Foreign training programs at university, master's and doctoral levels within the framework of training links with foreign countries.

2. Procedures and documents for establishing a foreign-invested education and training company

The application process for establishing a foreign-invested education and training company includes 3 steps as follows:

Step 1: Apply for an investment certificate

Preparing documents to apply for an investment certificate includes:

• Document requesting implementation of investment project;
• Copy of identity card or passport for individual investors; Copy of Business Registration Certificate for investors who are legal entities;
• Investment project proposal includes the following contents: investor implementing the project, investment objective, investment scale, investment capital and capital mobilization plan, location, term, investment progress , labor needs, proposals for investment incentives, assessment of impact and socio-economic efficiency of the project;
• Copy of one of the following documents: the investor's 02 most recent financial statements; commitment to financial support from the parent company; commitment to financial support from financial institutions; guarantee of the investor's financial capacity; Documents explaining the investor's financial capacity;
• Propose land use needs; In case the project does not request the State to allocate land, lease land, or allow change of land use purpose, submit a copy of the location lease agreement or other documents certifying that the investor has the right to use the location for implementation. current investment project;
• Explanation on technology use for projects using technology on the List of technologies restricted from transfer according to the law on technology transfer including the following contents: technology name, technology origin, technological process diagram; Main technical parameters, usage status of main machinery, equipment and technological lines;
• BCC contract for investment projects in the form of BCC contract.

Where to submit application: Department of Planning and Investment where the headquarters is expected to be located.

Processing order: Within 15 days from the date of receiving complete and valid documents, the Department of Planning and Investment will issue an Investment Registration Certificate to the foreign investor. In case of refusal, the Department of Planning and Investment will respond in writing and clearly state the reason.

Step 2: Register to establish a foreign-invested company in Vietnam

Documents to establish a company with foreign capital include:

➠ Application for business registration;

➠ Company charter;

➠ List of founding shareholders and shareholders who are foreign investors (if a joint stock company);

➠ List of members (if it is a two-member LLC);

➠ Certified copy of identity card or citizen identification card or passport (if an individual); Establishment decision, business registration certificate or equivalent document and citizen identification card or identity card or passport with authorization document for the capital manager in Vietnam (if an organization) ;

➠ Certified copy of the issued Investment Registration Certificate;

Where to submit application: Department of Planning and Investment where the enterprise is headquartered.

Duration: After 03 working days.

Step 3: Apply for an education and training license

Documents to apply for an education and training license include:

➠ Application for registration of educational activities according to Form No. 16 in the Appendix issued with Decree 86/2018/ND-CP.

➠ A certified copy or a copy accompanied by the original for comparison of the decision permitting the establishment of a foreign-invested educational institution; Certified copy or copy enclosed with the original for comparison of the investment registration certificate and business registration certificate for short-term training and retraining establishments with foreign investment.

➠ Regulations on organization and operation of educational institutions.

➠ Report on the progress of investment projects, capital contributions, loans, and total investment capital made.

➠ Report explaining that the educational institution or branch of the higher education institution has met the conditions for establishment, and attach:

Where to submit application:

☑️ Ministry of Education and Training for educational activity registration dossiers of higher education institutions and branches of foreign-invested higher education institutions;

☑️ Department of Education and Training for registration documents for educational activities of short-term training and fostering establishments; preschool education establishments, general education establishments; Preschool education establishments and general education establishments established by foreign diplomatic missions or intergovernmental international organizations.

Processing order:

☑️ Within 20 working days from the date of receiving complete dossiers, the dossier-receiving agency shall preside over and coordinate with relevant agencies and units to appraise the prescribed conditions to submit to competent authorities. the right to consider and decide to permit operations.

☑️ In case the dossier is incomplete, within 05 working days from the date of receiving the dossier, the receiving agency shall notify the investor in writing directly or by post or email. .

☑️ In case the educational institution is not qualified to operate, within 05 working days from the date of receiving the opinion of the competent authority, the receiving agency shall respond in writing to the investor. , which clearly states the reason.

SERVICES FOR ESTABLISHING A COMPANY WITH FOREIGN ELEMENTS DOING BUSINESS IN EDUCATION

♥️ Consulting on conditions for establishing foreign invested companies: capital contribution ratio of foreign investors in Vietnam; business conditions of various industries; project implementation location; Note the procedures before and after establishing a foreign invested company;

♥️ Consulting on choosing the right company type for investors: Limited Company or Joint Stock Company;

♥️ Consulting on opening a capital transfer account, capital contribution deadline;

♥️ Consulting and guiding investors to prepare necessary documents to establish foreign-invested companies;

♥️ Consulting and drafting company establishment documents for investors;

♥️ Investor representative works with competent Vietnamese state agencies during the process of implementing company establishment procedures for investors (Application for Investment Registration Certificate, Registration Certificate Business registration, business license, license according to specialized requirements, making legal seal, procedures after company establishment,...;

♥️ Comprehensive, regular consulting, accounting services, tax law package of activities arising during the process of doing business in Vietnam for investors.

See more services:

Instructions for registering the need to use foreign workers