5 Key Reasons Why Foreign Investors Must Obtain a Business Register Extract in Vietnam for Safe Deals

The Critical Role of Due Diligence for Foreign Investors in Vietnam

Investing or doing business in Vietnam presents exciting opportunities, but it also comes with risks. Whether you’re entering a joint venture, acquiring a local company, or signing a business contract, it is crucial to verify your Vietnamese partner’s legitimacy before proceeding.

For foreign investors, due diligence of companies in Vietnam is not just a recommended step, it’s a necessary safeguard against potential fraud, misrepresentation, and financial losses. One of the most critical documents required for this process is the Business Register Extract in Vietnam.

The Business Register Extract in Vietnam serves as an official record of a company’s legal status, ownership structure, and operational standing. However, foreign investors often face challenges in obtaining this document due to unfamiliarity with Vietnam’s legal system, language barriers, and administrative restrictions. Most of the time, those requesting a Business Register Extract in Vietnam are based abroad and lack direct access to the country’s business registration system.

The solution? Foreign investors need a legal expert in Vietnam to handle this request on their behalf. By working with a professional who understands local procedures, investors can efficiently obtain the necessary documentation and ensure their business dealings are based on verified company information.

In this brief guide, we will explain why the Business Register Extract in Vietnam is essential for due diligence, the common challenges faced by foreign investors, and how a legal representative in Vietnam can simplify the process.

What Is a Business Register Extract in Vietnam?

A Business Register Extract in Vietnam is an official document that contains key company details registered with the Vietnamese government. It is commonly used by foreign investors, business partners, and financial institutions to verify the existence and legal standing of a company before engaging in transactions.

Key Information Included in a Business Register Extract in Vietnam

1. Company Name and Registration Number – The legal name of the business and its official registration number in Vietnam.
2. Date of Incorporation – The date when the company was legally established.
3. Legal Representative – The official person authorized to act on behalf of the company.
4. Registered Business Address – The official physical location of the company.
5. Business Activities – The scope of operations permitted under the company’s registration.
6. Ownership and Shareholders – Information about company shareholders, if publicly available.
7. Capital Structure – The registered capital and financial details of the company.
8. Current Status – Whether the company is active, suspended, or dissolved.

This document is essential for foreign investors who need to conduct due diligence before engaging in any significant business transactions.

Why Foreign Investors Need a Business Register Extract in Vietnam for Due Diligence

1. Verifying the Legitimacy of a Business Partner

Many foreign investors enter agreements based on verbal assurances or website information, only to later discover discrepancies in ownership, legal representation, or financial standing. The Business Register Extract in Vietnam provides concrete evidence that a company is properly registered and in good standing.

2. Identifying the True Owners and Legal Representatives

One of the biggest risks in foreign investment is dealing with unauthorized individuals who claim to represent a company. The Business Register Extract in Vietnam clearly lists the legal representative and/or shareholders, ensuring that investors are dealing with the right people.

3. Protecting Against Fraud and Financial Misrepresentation

Without verifying a company’s registration details, investors may unknowingly enter into contracts with inactive businesses, companies in legal disputes, or fraudulent entities. A Business Register Extract in Vietnam ensures transparency and reduces the risk of financial losses.

4. Ensuring Compliance with International and Local Regulations

Many multinational corporations have strict compliance policies requiring them to verify their business partners before entering into any financial agreements. The Business Register Extract in Vietnam helps meet these requirements and ensures compliance with anti-money laundering (AML) and foreign investment regulations.

Why Foreign-Based Investors Need a Legal Representative to Obtain a Business Register Extract in Vietnam

1. Limited Access for Foreigners

Vietnam’s business registration system is not designed for direct foreign access. Most business records are available only to individuals or organizations within Vietnam, making it impossible for foreign investors to request the Business Register Extract in Vietnam directly.

2. Navigating Vietnam’s Complex Legal System

Vietnamese administrative procedures can be complex, especially for those unfamiliar with local laws. Foreign investors often do not know where to go, whom to contact, or what documents to submit. Having a legal representative in Vietnam eliminates these barriers.

3. Language Barriers and Legal Terminology

Vietnamese legal documents and registration records are issued in Vietnamese, and their format may differ from those used in Western countries. A legal representative in Vietnam can provide a certified translation and explain the document’s contents.

4. Avoiding Delays and Administrative Hassles

Processing requests from abroad can be time-consuming and bureaucratically challenging. A local legal expert can quickly obtain the Business Register Extract in Vietnam, ensuring a smooth and efficient process.

5. Handling Document Certification and Legalization

In some cases, foreign investors may require a certified or legalized version of the Business Register Extract in Vietnam for use in international transactions. A legal representative can handle notarization, authentication, and translation as needed.

How a Legal Representative Can Help Foreign Investors Obtain a Business Register Extract in Vietnam

1. Acting on Behalf of the Foreign Investor

A legal representative in Vietnam can formally request the Business Register Extract from the appropriate government authorities, ensuring that the request is handled correctly and efficiently.

2. Verifying and Explaining the Extract’s Content

Not all investors are familiar with Vietnamese corporate registration details. A legal expert can review the extract, explain key details, and highlight any potential red flags.

3. Providing Additional Due Diligence Services

Beyond obtaining the Business Register Extract in Vietnam, a legal representative can conduct deeper investigations into a company’s financial health, legal history, and regulatory compliance.

4. Ensuring Compliance with Legal Requirements

If the Business Register Extract in Vietnam needs to be presented in another country, a legal representative can arrange for proper certification, notarization, and legalization.

Frequently Asked Questions (FAQs) About Business Register Extract in Vietnam

1. Who needs a Business Register Extract in Vietnam?

• Foreign investors conducting due diligence on a Vietnamese company.
• Companies entering joint ventures or acquisitions.
• Financial institutions verifying corporate clients.
• Legal teams handling cross-border contracts.

2. How long does it take to obtain a Business Register Extract in Vietnam?

With the help of a legal representative in Vietnam, the process can be completed in just a few days.

3. Can a foreign investor request the document directly?

No. A legal representative in Vietnam is required to obtain the document on behalf of a foreign-based company.

4. Is the document available in English?

The Business Register Extract in Vietnam is issued in Vietnamese, but a certified legal representative can provide a translated and notarized version.

Secure Your Business Interests with the Right Legal Support

For foreign investors conducting due diligence in Vietnam, obtaining a Business Register Extract in Vietnam is a critical step in verifying a company’s legitimacy and compliance.

However, since foreign entities cannot directly access this document, working with a legal representative in Vietnam is essential. Get legal help to ensure your business decisions are based on accurate and verified company records.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.