Procedures for adjusting capital for projects in Nghe An

Nghe An belongs to the North Central economic region with many development potentials, large-scale human resources, and rationally planned land fund for development investment. Nghe An has three types of terrain: mountainous, plains, and coastal areas. Therefore, local authorities have different development in each feature, not only in industry, agriculture but also in trade and services. Nghe An is currently the destination of many domestic and foreign investors. By the end of 2020, the province issued72 licensed investment projects with a capital of more than 7,700 billion VND.

For an investment project, capital is an inseparable element. The effectiveness of a project implementation depends on how effective the capital use. Therefore, from the stage of investment registration, the law stipulates that investor need to determine the amount of capital for project implementation, types of capital assets, methods of raising capital, and progress of capital mobilization. Permitting the investment policy or issuing Investment Registration Certificate is a commitment to implement the project for the investor. Capital also demonstrates the size of a project. The larger the investment capital, the larger the project. However, when implementing the project in reality for various reasons such as objective conditions of society and nature, changes in business strategy that total investment capital may change in the direction of increase or decrease. At that time, investors need to carry out capital adjustment procedures at the competent authority. The following article will specifically address this issue.

WHAT IS PROJECT INVESTMENT CAPITAL?

According to the definition in the Investment Law 2020, investment capital is money and other assets under the provisions of civil law and international treaties to which the Socialist Republic of Vietnam is a signatory to carry out operations. Business Investment. The definition of an investment project is also associated with capital, especially a set of proposals for medium-term or long-term capital to conduct business investment activities in a specific area, within a defined time.

Note: Project investment capital may be different from the charter capital of a company. Charter capital is the total value of assets contributed or committed to by members of the company and the company owner when establishing a limited liability company or partnership; the total par value of shares sold or registered for purchase upon the establishment of a joint-stock company.

For an investment project, the registered capital for implementation of the investment project is determined based on:

– Capital contributed by the investor in cash, machinery, equipment, the value of intellectual property rights, technology, technical know-how, the value of land use rights, and other assets according to civil law and international treaties on investment;

– Raised capital may include loans from credit institutions, capital mobilized from shareholders, members, and other entities; Capital raised from other sources

In addition, the investors’ residual profit to re-investment (if any) also counted in the total project investment capital.

The investor determines performing investment of the project based on contributed funding, mobilized capital, and retained profits for the re-investment in the project implementation. Investors themselves determine the value of the investment capital of the investment project after the project is into operation.

To ensure the state management performance of science and technology or to determine tax bases, state management authorities may request an independent assessment of the value of investment capital, quality of machinery, equipment, and technological lines after the investment project into operation. The investor must bear the cost of assessment if the assessment results lead to an increase in tax obligations to the State.

Procedures for adjusting capital for projects in Nghe An

For projects with approved investment policies

Due to the provisions of Article 41 of the Law on Investment 2020, if the investor’s investment project has already been authorized, they must carry out an approval procedure for the adjustment of the investment policy if the total investment capital changes from 20 % or more lead to changing the size of the investment project.

Dossier for adjustment of approval of investment policy includes:

a) A proposal for adjustment of the investment project: clearly stating the registered capital before and after the adjustment, and the reason for the adjustment

b) Report on the implementation of the investment project up to the time of adjustment;

c) The investor’s decision on the adjustment of the investment project, for the investor being an organization;

d) Explain or provide documents related to the adjustment of investment capital such as documents proving the financial capacity of the investor, investment project proposal on capital mobilization plan;

e) A copy of the decision approving (adjusting) the investment policy (if any), the decision on approving (adjusting) the investor (if any), the decision approving (adjusting) the investment policy in the same manner. time with investor approval (if any), Investment Registration Certificate/Investment Certificate/Investment License/Business License ………… (number, date of issue, issuing agency) (if applicable) Yes).

Investors submit documents at:

– The Ministry of Planning and Investment if the investment project falls under the authority of the Prime Minister to approve the investment policy.

– Management boards of industrial parks, export processing zones, high-tech zones if the investment project falls under the authority to approve investment policies of the Management Board of industrial parks, export processing zones, hi-tech parks, or economic zones.

– Department of Planning and Investment of Nghe An province for the remaining cases

The agency competent to approve investment policies is also the agency competent to adjust decisions on approval of investment policies.

After receiving the decision on adjustment and approval of the investment policy, the investment registration authority that has issued the Investment Registration Certificate will adjust the information about capital on the new Investment Registration Certificate.

For projects that have been granted investment registration certificates but are not subject to the approval of investment policies

An investor submits a dossier similar to the above case to the investment registration authority that has issued the Investment Registration Certificate, including:

a) A written request for adjustment of the investment project: clearly stating the registered capital before and after the adjustment; reason for the adjustment

b) Report on the implementation of the investment project up to the time of adjustment;

c) The investor’s decision on the adjustment of the investment project, for the investor being an organization;

e) Copy of Investment Registration Certificate/Investment Certificate/Investment License/Business License …… (number, date of issue, issuing agency) (if any).

The Investment Registration Authority shall amend the Investment Registration Certificate for the investor within ten days from the date of receiving valid documents.

Original source: Thủ tục điều chỉnh vốn đối với dự án tại Nghệ An – Vanluat.com