Case Study

Company Set-Up
‍
Brendel & Associates facilitated the establishment of a large German electronics producer in 2015. This initial setup had been planned as an alternative to China and, due to its fast success, led to acquisition of four further production locations within the first three years of operations. The client, renowned for its innovative smart power supply units and drive solutions, relied on our expertise to navigate the regulatory and legal requirements of setting up a new entity, a one-member Company Limited, in Vietnam. It had been a very challenging mandate at times but we were awed by the speed with which this client has adapted to local operational requirements and are proud to have and continuously support its activities in Vietnam as well as its offshore financing structure. 

Our initial set-up support included obtaining the two essential government approvals:

1. Investment Registration Certificate (IRC)
‍The IRC authorizes foreign investors to operate a so called “Investment Project” in Vietnam i.e., permits a foreign investor to engage in certain specified business activities in a specific location to a certain/specified extent. Our role involved advising on and preparing the necessary legal documents for the Investment Project approval, reviewing corporate documentation, and guiding the client through the legalization process for documents related to the investor's legal status and financial capability. We also ensured the legality of the landlord’s building ownership documentation, a further essential aspect of the successful application.

2. Enterprise Registration Certificate (ERC)
‍The ERC confirms the establishment of the legal entity implementing the investment project. We advised on, reviewed, and assembled all required documents for the ERC application, prepared the list of authorized representatives and their respective appointment decisions, drafted, and finalized the company charter, and guided the client through the legalization procedures necessary to establish their legal entity in Vietnam. 

During and after the setup phase, which took about three months, we supported the client with coordinating and negotiating with local contractors (e.g., factory lease, renovation/construction work, local and international procurement of machinery), opening bank accounts (e.g., a Direct Investment Capital Account, to which the charter capital must be credited), and managing Work Permit and Temporary Residence Card applications for its expatriates.