In recent years, Vietnam is one of the attractive tourist destinations in Asia, attracting many international tourists. Therefore, there are many foreign investors who want to invest in travel services in Vietnam. Let’s find out with AMI about procedures to establish a foreign-invested company trading travel services through the following article.
Conditions for travel service business:
Based on Vietnam’s Commitments on Trade in Services in the WTO, foreign investors wishing to provide travel agency and operating service tours must enter into joint ventures with Vietnamese investors and not be limited to foreign investors’ capital contribution. Joint-venture enterprises can only provide international travel services to serve international tourists coming to Vietnam (inbound) and domestic travel for tourists entering Vietnam as part of activities to bring tourists into Vietnam, be not allowed to trading services on bringing tourists from Vietnam to abroad (outbound).
According to Article 31 of the Law on Tourism 2017 and relevant guiding documents, conditions for international travel business services include:
- The enterprise is established as prescribed by the law on enterprises;
- The enterprise must make has paid a deposit to a bank (Business travel services for international tourists to Vietnam) with the rate is 250.000.000 Vietnam dongs.
- The person in charge of provision of travel services holds an associate degree or higher in travel; in case he/she holds an associate degree or higher in another major, a certificate of training in domestic tour operation is required;
- Tour guides in foreign-invested enterprise must be Vietnamese citizens.
Procedures for establishing a foreign-invested company to provide travel services:
Step 1: Applying for Investment Registration Certificate
The investor submits application for Investment Registration Certificate at Investment Registration Agency, dossier component includes:
- Written proposal for implementation of the investment project;
- Copy of the identify card or passport, for individual investors; copy of the establishment decision or an equivalent document certifying the legal status, for institutional investors;
- Proposals for the investment project;
- Copy of one of the documents proving the investor’s financial capacity: A copy of one of the following documents: the investor’s financial statement of the last 2 years; financial support commitment of the parent company and of a financial institution; guarantee for the investor’s financial capacity; and document explaining the investor’s financial capacity;
- Proposals on land use; in case the investor does not propose the State to allocate or lease land or to permit change of land use purposes, the investor shall submit a copy of the site lease agreement or another document certifying that the investor has the rights to use the site used for project implementation;
- The BCC, for investment projects in the form of BCC.
Documents such as the enterprise registration certificate or other equivalent documents shall be consularly legalized.
Within 15 days after receiving a complete dossier, the investment registration agency shall grant an investment registration certificate. In case of refusal, it shall issue a written reply clearly stating the reason to the investor
Step 2: Applying for Enterprise Registration Certificate
After being granted an Investment Registration Certificate, the investor submits application for business registration at the Business Registration Office – the Department of Planning and Investment at the province level, the composition of the application includes:
- Enterprise registration application;
- Draft of company’s charter;
- List of members, List of founding shareholders;
- List of authorized representatives for members, shareholders are organizations;
- Valid copy of one of the documents: Citizen or people’s identity card, passport or other valid personal identification papers, for individual members; Establishment decision or other equivalent documents of the organizations; and one of the personal identification papers of the authorized representative and the corresponding authorization document;
- The investment registration certificate is licensed by the competent authority.
Within 03 working days from the date of receiving valid dossiers, the Business Registration Agency grants a business registration certificate to the company
Dossier component to apply for International Tour Operator License includes:
- An application form for issuance of the International Tour Operator License;
- Notarized copy of the business registration certificate or investment registration certificate issued by a competent authority;
- A certificate of deposit payment;
- Notarized copy of qualifications of the person in charge of provision of travel services;
- Notarized copy of the decision on appointment or employment contract between the travel service provider and the person in charge of provision of travel services.
The enterprise applying for the International Tour Operator License shall submit 01 application to the General Department of Tourism. Within 10 days from the day on which a valid application is received, the General Department of Tourism shall assess and issue the International Tour Operator License to the enterprise and inform the tourism authority of the province where the enterprise is located thereof; in case of refusal, a written response stating reasons thereof must be given.
The above is the procedures for establishing a foreign invested company operating in the field of travel services. If you have any questions, please do not hesitate to contact AMI for advice and support.