Issue
The client wished to convert a debt arising from a loan from its parent company into capital contribution in an economic organization in Vietnam, and to complete the legal procedures needed to record the new capital and update the related registration certificates.
What HDS did
HDS researched and advised on current regulations on converting a loan into capital contribution in a foreign-invested company, and assessed the conditions, options and legal issues arising. On that basis, HDS guided the client in preparing the required documents; drafted and finalized the legal documents for the transaction; and represented the client before the competent state authorities to complete the conversion of the loan into capital contribution and update the related enterprise registration and investment registration information.
Result
The competent authority approved the foreign investor's capital purchase; the company completed the related legal procedures and was issued an Enterprise Registration Certificate and an amended Investment Registration Certificate recording the changes as required. The loan-to-equity conversion was carried out successfully, helping optimize the capital structure and ensure the legal soundness of the company's investment activities.
