ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Thứ Tư, 31 tháng 8, 2016

CAPITAL CONDITIONS IN AIR TRANSPORTATION BUSINESS


Air transportation is the conditional business line and conducted by air transportation enterprises. Air transportation business includes air transportation activity, advertising, marketing and sale of air transportation products on the market for the purpose of making profit.

Therefore, trading in this business line is subject to strict rules of law. The conditional business lines in the field of civil aviation are detailed in Decree 92/2016/ND-CP dated July 1st 2016.
Accordingly, in the field of air transportation, business must meet capital requirements as follows:
The minimum capital requirement to establish and maintain air transportation business:
  • Operating up to 10 aircrafts: 700 billion VND for enterprises engaging in international air transportation; 300 billion VND for enterprises only engaging in domestic air transportation;
  • Operating between 11 and 30 aircrafts: 1,000 billion VND for enterprises engaging in international air transportation; 600 billion VND for enterprises only engaging in domestic air transportation;
  • Operating more than 30 aircrafts: 1,300 billion VND for enterprises engaging in international air transportation; 700 billion VND for enterprises only engaging in domestic air transportation;
The minimum capital requirements to establish and maintain general air transportation business: 100 billion VND.
Air transportation business that has foreign investment must meet the following conditions:
  • The foreign parties take up less than 30% of charter capital;
  • Must have at least one Vietnam individual or legal entity hold the largest part of the charter capital. In case Vietnam legal entity has foreign investment capital, the foreign capital share should not exceed 49% of the charter capital of the legal entity.
The transfer of share and capital contribution of air transportation business without foreign investment to foreign investor shall be made only after 02 years from the date of issuance of the air transportation business license.
Enterprises have to send the share and capital transfer proposal to foreign investor to Civil Aviation Administration of Vietnam, which includes: The transferee, transfer condition, the number of transferring shares and capital contribution; Development plans for aircraft teams, business plan, development strategies referred to in Paragraph 1, Article 9 of the Decree 92/2016/ND-CP (if any).
Within 05 working days from the date of receiving the proposal from business, Civil Aviation Administration of Vietnam will report to the Ministry of Transportation the appraisal results.
Within 05 working days from the date of receiving the appraisal result report of the Civil Aviation Administration of Vietnam, the Ministry of Transportation will consider approval or disapproval and clearly state the reasons.
ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

Thứ Ba, 30 tháng 8, 2016

Decree 118/2015/ND-CP Guiding the Investment Law 2014

Decree 118/2015/ND-CP was issued on November 12th 2015 by the Government. It takes effect from December 27th 2015 clearly regulates some regulations of the Law on Investment on the application, control, publish investment business condition; measures to ensuring investment, investment incentives, investment procedures, operational implementation of investment projects and state management of investment projects.


Regarding investment conditions in Vietnam:
– In terms of the business investment sectors, investors may invest in conditional business lines when they meet the conditions of license, practicing certificate, certified professional liability insurance or other forms of required documents under the provisions of the covered agreements that Vietnam has signed or specific regulations of the law of Vietnam.
– In addition, investors also have to meet other conditions such as charter capital (for a certain number of business lines); forms of investment; scope of investment activities; Vietnam partners to join the investment execution.
+ Establish economic organization.
+ Capital contribution or share purchase.
+ Business cooperation contract.
+ Receive transfer of investment project.
– Foreign investors when investing in Vietnam in addition to meeting conditions like investor Vietnam, they will have to meet other specific conditions. Particularly for investors that have both Vietnam and foreign citizenships, they will be able to choose to apply the conditions for foreign investor or Vietnam investor.
On the issue of investment incentives, investors will receive incentives from the State in the following cases:
– Projects under the business lines of investment incentives.
– Investing in areas with difficult economic conditions.
– Project with capital from 6000 billion VND and will be disbursed within a period of 3 years.
– Investing in projects in rural areas and use more than 500 employees.
– Investment project in the fields of science and technology.
– For investment projects in Section 3 and 4 above will be entitled to preferential investment projects in areas with difficult economic conditions. The cases that projects simultaneously under both Section 1 and 2 above shall also enjoy incentives according to investment project in areas with difficult economic conditions.
Distinguishes 3 types of projects:
– The investment project that is not subject to the investment policy decision.
– The investment project under the jurisdiction on investment policy decision of the provincial People’s Committee.
– The project that is not subject to the granting of investment certificate.
In particular, for the project’s land that is granted, lease or allow the transfer of land use purposes by the State, it is necessary to deposit to ensure the investment. The deposit rate will be 3%, 2% or 1% depending on the scale of capital is 300 billion VND or above. Depends on the enjoyed incentives that the amount of deposit will be reduced according to different rate (the typical reduction rate is 25% or 50%).
Regarding the transfer of investment project:
Investor is allowed to transfer part or the whole of their investment project to other investor under the provisions of the law on investment (paragraph 1, article 45). In case when the transfer of projects generates income, investors must comply with the relevant tax obligations.
In addition, the Decree 118/2015 also provides details about:
– The procedures for the adjustment of investment projects in the case of division, separation, merger and transformation of economic organization (Article 38);
– The procedures for the termination of investment projects (Articles 41, 42);
– The investment procedures in the form of capital contribution, share purchase and capital contribution of foreign investors.
Decree 118/2015/ND-CP takes effect from December 27th 2015.
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ANT Lawyers is a Vietnamese law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing legal services or representation in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

Musician Ed Sheeran faces copyright lawsuit over 'Thinking Out Loud'

Heirs of the composer for Marvin Gaye's "Let's Get It On" sued British musician Ed Sheeran on Tuesday.

Heirs of the composer for Marvin Gaye's "Let's Get It On" sued British musician Ed Sheeran on Tuesday, claiming his hit song "Thinking Out Loud" copies core elements of the late soul singer's 1973 track.
The copyright infringement lawsuit was filed by the heirs of Ed Townsend, who co-wrote the lyrics to "Let's Get It On" in 1973 and created its musical composition, according to the complaint filed in federal court in the Southern District of New York.
Representatives for defendants Sheeran, Sony/ATV Music Publishing, and Atlantic Records did not immediately respond to requests for comment.
The lawsuit, which asks for damages to be assessed at a jury trial, argues that the harmonic progressions, melodic and rhythmic elements central to "Let's Get It On" formed the structure of Sheeran's "Thinking Out Loud."
"The Defendants copied the 'heart' of 'Let's' and repeated it continuously throughout 'Thinking,'" the lawsuit said. "The melodic, harmonic, and rhythmic compositions of 'Thinking' are substantially and/or strikingly similar to the drum composition of 'Let's.'"
Grammy Award-winning Sheeran has become one of Britain's top-selling artists in the past two years, and has written and co-written tracks for artists such as One Direction, Taylor Swift and Justin Bieber.
The lawsuit came two months after California-based musicians sued Sheeran for $20 million over his hit song "Photograph" in an unrelated case.
Gaye's family last year successfully sued R&B recording artists Robin Thicke and Pharrell Williams for copyright infringement in another unrelated case over their hit single "Blurred Lines," winning a $7.4 million judgment.

Thứ Hai, 29 tháng 8, 2016

VIETNAM TEMPORARY RESIDENCE CARD FOR FOREIGNER

Under the provision of the Law on entry, exit, transit and residence of foreigner in Vietnam, temporary residence card is paper issued by the immigration management agency or the competent authorities under the Ministry of Foreign Affairs for foreigner. Accordingly, foreigner is allowed to reside for a definite time in Vietnam and the temporary residence card can replace visa.

The cases that are eligible for temporary residence card granting:
_ Foreigners who are members of diplomatic representative missions, consular offices, representative missions of international organizations under the United Nations, intergovernmental organization in Vietnam and spouse, child under 18 years old and maid are granted the temporary residence card with symbol NG3.
_ Foreigners who are granted visa with the symbol LV1, LV2, ĐT, NN1, NN2, DH, PV1, LĐ, TT shall be granted temporary residence cards with similar symbols with the symbols in their visas
In which the meaning of the symbols in the visa is understood as follows:
_ LV1: Issued to person coming to Vietnam to work with departments, units and agencies directly under the central of the Communist Party of Vietnam; The National Assembly, the Government, the Central Committee of the Vietnam Fatherland, the Supreme People’s Court, the Supreme People’s Procuracy, State Audit, ministries, ministerial-level agencies, agencies attached to the Government; Provincial Committees, Party Committees, People’s Councils, People’s Committees of provinces and cities under the Central Government.
_ LV2: Issued to person coming to Vietnam to work with the political – social organizations, social organizations, Vietnam Chamber of Commerce and Industry.
_ ĐT: Issued to foreign investors in Vietnam and foreign lawyers practicing in Vietnam.
_ NN1: Issued to person who is the head of the representative office, project of international organizations and international non-governmental organizations in Vietnam.
_ NN2: Issued to the head of the representative office or branches of foreign business entity, representative offices of economic, culture and other professional organizations of foreign countries in Vietnam.
_ NN3: Issued to person coming to Vietnam to work with foreign non-governmental organizations, representative offices or branches of foreign business entities, representative offices of economic, culture and other specialized organizations of foreign country in Vietnam.
_ TT: Issued to foreigners who are spouses, children under 18 years of foreigners that are granted visa with symbols LV1, LV2, ĐT, NN1, NN2, DH, PV1, LĐ or foreigners who are parents, spouses and children of Vietam citizen.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

BUSINESS LINES THAT NEED SUBLICENSE

In the process of establishing, businesses need to conduct the declaration of registered business lines as prescribed by law. For ordinary professions, businesses only need to encode the professions according to the encoding system in accordance with the law.

However, for some conditional business lines, in addition to the declaration in accordance with regulations, enterprises have to fully satisfy the prescribed conditions such as legal capital or business licenses (sublicense).
Moreover, enterprises need to pay attention to some lines of business that require sublicense during the business registration process, which includes:

No
Business line
Name of sublicense
Licensing authority
01
Travel service business
International travel business license
Vietnam National Administration of Tourism
Domestic travel business license
Department of Culture, Sport and Tourism
02
Hotel business
Decision recognizing the star rating for tourism accommodation facilities
Department of Culture, Sport and Tourism
03
Printing service
Printing operation license
Department of Information and Communication – Department of Publication, Printing and Publishing
04
Real estate business: lease for foreigner
Certificate of fire safety
Chamber/Department of Fire Protection, Province/City Police
Certificate of social security
District Police
05
Security service business
Certificate of social security
City Police (PC 13)
06
Real estate trading floor
Real estate trading floor operating announcement
Department of Construction
07
Bottled drinking water production
Certificate of food safety
Department of Health or District Department of Health
Certificate of product standard announcement
08
Food production
Certificate of food safety
Department of Health
Certificate of product standard
09
Restaurant, eateries and coffee shop business
Certificate of food safety
Department of Health
Restaurant business
Fire safety inspection record
District Police
10
Informatics/Language Center
Informatics/Language Center Operating License
Department of Education
11
Veterinary medicament business
Certificates of satisfaction of business condition
City Veterinary Department
12
Veterinary medicament production
Veterinary medicament production license
Department of Veterinary
13
Preschool
Preschool Establishment License
Department of Education

Thứ Hai, 1 tháng 8, 2016

PROPOSED TO REDUCE CORPORATE INCOME TAX TO 15 – 17%

The Ministry of Finance is drafting a report submitting to the Government on the implementation of Resolution 35/2016 of the Government on a number of solutions to remove difficulties and tax obstacles for small and medium enterprises.

Accordingly, the Ministry is expected to submit two plans to prepare for comments of the Parliament at the 2ndSession (October 2016). In which, there are two options. Option 1 is applying the general tax rate of 17% from January 1st 2016 until the end of 2020 for small and medium enterprises. Option 2 is applying the general tax rate of 15% from January 1st 2016 to 2020. The general tax rate which is currently applied is 20%.
In addition, the Ministry of Finance also proposed the plan to reduce the corporate income tax for newly established start-up businesses with investment projects in the fields of preference or in underdeveloped areas, rural areas: applying tax rate of 10% in 15 years; tax exemption for 4 years and reduce 50% of the tax payable in the next 9 years for new projects.
Concerning the handling of the tax debt, deferred payment and fines, the Ministry of Finance proposed debt relief but must ensure equality among economic sectors, non-discrimination; remove the deferred payment for cases caused by force majeure that does not have the money to pay tax; remove tax debt, deferred payment and fines for companies that were dissolved, bankruptcy, business individuals are dead or missing.

DISPUTE SETTLEMENT IN INTERNATIONAL TRADE

In international trade, when drafting international contracts, the parties usually focus on the terms of payment and expense but little attention to terms of dispute settlement. Thus, the parties should be aware that the disagreements and disputes can arise at any time. Therefore, in the process of concluding an international economic agreement, the parties should note the provisions on the selection methods of dispute settlement if a dispute occurs. Currently, there are 4 dispute resolution methods in international trade as follows: negotiation, mediation, commercial arbitration and court.

  • Negotiation
Negotiation is a settlement method which is usually applied in international dispute settlement. In particular, the parties discuss together, struggle, compromise and agree to settle the dispute. The result of the negotiation is that the dispute could be resolve or not. Negotiation is conducted in two ways: The two parties directly meet each other to discuss and deal or one party submit complaint to the other party and the other party answers the complaint.
  • Mediation
Mediation is the method of resolving dispute between the parties through the role of a third party. Mediation can be accomplished by two ways: One is that the parties agree with each other about mediation, the mediator will be designated and conduct the mediation without following any rules of mediation. The second way is that the parties agree to conduct the mediation under rules of a professional organization or one specific arbitration institution, such as mediation rules of the International Chamber of Commerce (ICC).
  • Commercial arbitration.
Arbitration is a method of dispute settlement arising in trade activities that are agreed between the parties and carried out according to the order and proceedings. Presently, there are kinds of arbitration such as: ad hoc arbitration and permanent arbitration.
  • Court.


The 3 dispute settlement methods above are voluntary in nature. They are different from the dispute settlement in accordance with judicial procedures at court. The settlement of dispute by court is to resolve dispute through the activities of the State tribunals. Therefore, litigants in the dispute are often considered as a final solution to protect their legitimate interests. Especially, when there is a conflict, the parties will choose the form of trade negotiation or mediation rather than commercial arbitration or court.

BUSINESS CONDITIONS FOR CONDOMINIUM MANAGEMENT TRAINING SERVICE

On July 1st 2016, the Government issued Decree No. 79/2016/ND-CP guiding the business of training service, improving the professional knowledge, management profession and operation of condominium.

Accordingly, organizations and individuals providing the above services must fully satisfy the 05 following conditions:
– First, the organization was established and operating in Vietnam; has the function of vocational training or college, university or postgraduate education as prescribed.
– Second, has facility and classroom to ensure sufficient seat for students and location for student to practice on professional knowledge and practice.
– Third, has syllabus or teaching materials consistent with training framework program that promulgated by the Ministry of Construction.
– Fourth, has a minimum of 40% of the teachers on the payroll or a contract of indefinite term (has social insurance contribution) in accordance with the training framework program under the guidance of the Ministry of Construction.
– Fifth, being recognized by the Ministry of Construction or the agency authorized by the Ministry of Construction as qualifying for business of condominium management training service.
In addition, this Decree also provides for conditions for business of real estate brokerage practice training service as follows:
– First, the organization was established and operating in Vietnam; has the function of vocational training or college, university or postgraduate education as prescribed.
– Second, has facility and classroom to ensure sufficient seat for students and location for student to practice on knowledge of real estate brokerage and administration of real estate trading floor.
– Third, has syllabus or teaching materials consistent with training framework program that promulgated by the Ministry of Construction.
– Fourth, has a minimum of 30% of the teachers on the payroll or a contract of indefinite term (has social insurance contribution) in accordance with the training framework program under the guidance of the Ministry of Construction.
Decree No. 79/2016/ND-CP officially takes effect upon signing.