What is Investment Capital?

Investment Capital refers to the funds that shareholders or investors commit to a company either at its inception or during its operational phase. This capital establishes the company’s financial foundation, determines its size, and influences its borrowing capacity and expansion potential.

Purpose of Increasing Investment Capital

Increasing Investment Capital is a strategic move for many businesses, including joint-stock companies. Key reasons include:

  • Registering Additional Business Activities: Certain sectors, like real estate, require minimum investment thresholds (e.g., 20 billion VND).
  • Expanding Business Operations: To scale up production and services.
  • Increasing Borrowing Capacity: To access higher limits from banks or financial institutions.
  • Meeting Project Bidding Requirements: Essential for participating in large-scale projects or entering into significant cooperation contracts.

Process and Documentation for Increasing Investment Capital

Process:

  1. Conduct a Shareholders’ Meeting: Decide on increasing Investment Capital.
  2. Contribute Additional Shares: Shareholders must contribute according to their registration.
  3. Prepare Documentation: Gather necessary documents for the increase.
  4. Register the Change: Officially register the increase with relevant authorities.
  5. Submit Additional Tax Declaration: File the new business license tax declaration.

Documentation Required:

  • Notification of Changes: Document detailing the increase in Investment Capital.
  • Shareholders’ Meeting Decision: Records of the decision and meeting minutes.
  • Asset Valuation Report: If additional capital is contributed in the form of assets.
  • Identification Documents: Notarized copies of ID cards or passports of new shareholders.
  • Shareholder Register: Updated register of shareholders.
  • Power of Attorney: Authorization for a representative to handle the procedures.
  • Authorized Representative’s ID: Notarized copies of the representative's ID.

For detailed, prompt, and free consultation on increasing Investment Capital for various types of businesses, please contact us for expert advice and support.

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