Chương 2 Nghị định 16/2001/NĐ-CP: Tổ chức và điều hành công ty cho thuê tài chính

Chapter II

ORGANIZATION AND ADMINISTRATION OF FINANCIAL LEASING COMPANIES

Section I. GRANTING OF ESTABLISHMENT AND OPERATION LICENSES

Article 8.-

1. Conditions for a financial leasing company to be granted the establishment and operation license:

a/ Wishing to conduct financial leasing activities in the geographical area where it plans to operate;

b/ Having enough legal capital as prescribed by the Government in Decree No. 82/1998/ND-CP of October 3, 1998;

c/ Its founding members being prestigious and financially capable organizations and/or individuals;

d/ Its managerial and executive staff having full civil act capacity and professional qualifications suited to its operations;

e/ Having a draft organization and operation charter compliant with the provisions of the Law on Credit Institutions and other law provisions;

f/ Having a feasible business plan.

2. Apart from the conditions specified in Clause 1 of this Article, the foreign parties to the joint-venture companies or companies with 100% foreign capital must be permitted by competent bodies under the provisions of foreign laws to enter into joint ventures or to conduct financial leasing activities in Vietnam.

Article 9.-

1. Dossiers of application for establishment and operation licenses of financial leasing companies:

a/ An application for the establishment and operation license;

b/ The draft charter;

c/ The operation plan for the first three years, clearly stating the economic efficiency and benefits of the company;

d/ The list, CVs and diplomas evidencing the professional capability and qualifications of founding members, members of the Management Board, the Control Board and the general director (director);

e/ The capital contribution plan and the list of capital-contributing individuals and organizations;

f/ The financial status and information about big share-holders;

g/ The approval of the competent-level Peoples Committee of the locality where the financial leasing companys head office is to be located.

2. Apart from the documents specified in Clause 1 of this Article, for the application for establishment and operation licenses of joint-venture financial leasing companies or financial leasing companies with 100% foreign capital, the following documents are also required:

a/ The operation charter of the foreign-based organization;

b/ The operation license of the foreign-based organization;

c/ The written permission of a competent foreign organization for the foreign party to operate in Vietnam;

d/ The audited balance sheet and profit-loss statement, the report on the situation of the last three years operation of the foreign-based organization;

e/ The draft joint-venture contract.

3. The dossiers of application for the licenses prescribed in Clause 2 of this Article must be made in two sets, one in Vietnamese and the other in a common foreign language. The State Bank shall specify which documents in the foreign-language dossier set are required to be consularized. Vietnamese-language copies and translations from foreign languages into Vietnamese must be certified by Vietnamese notary offices or overseas Vietnamese representative missions or consulates.

Article 10.- Financial leasing companies established according to the provisions of Clauses 1, 2 and 3, Article 2 of this Decree shall have to pay a licensing fee and a fee for each extension of their establishment and operation licenses, being equal to 0.1% of their charter capital.

The fee payment by joint-venture financial leasing companies and financial leasing companies with 100% foreign capital shall comply with the provisions of Article 18 of the Governments Decree No. 13/1999/ND-CP of March 17, 1999.

Article 11.-

1. In order to be operational, a financial leasing company shall have to meet all the following conditions:

a/ Its charter already approved by the State Bank;

b/ Having enough legal capital, its head office suited to the requirements of financial leasing activities and having been granted the business registration certificate;

c/ The cash amounts contributed to its charter capital must be deposited in a blocked account at the State Bank at least 30 days before it starts operation.

d/ Having published the contents of its license on central and local newspapers according to law provisions.

2. Within 12 months after being granted the establishment and operation license, the financial leasing company must commence its operation.

Article 12.- The withdrawal of the licenses of financial leasing companies shall comply with the provisions of Article 29 of the Law on Credit Institutions and the guidance of the State Bank.

Section 2. ORGANIZATIONAL, ADMINISTRATIVE, EXECUTIVE AND CONTROL STRUCTURE OF FINANCIAL LEASING COMPANIES

Article 13.-

1. The opening of domestic and overseas branches and representative offices of financial leasing companies must be approved in writing by the State Bank.

2. The establishment of the financial leasing companies independent cost-accounting affiliate companies having the legal person status to operate in the finance, banking and insurance fields shall comply with the regulations of the State Bank.

Article 14.- Dossier conditions, procedures for opening of branches and representative offices of financial leasing companies shall comply with the provisions of Article 33 of the Law on Credit Institutions and the guidance of the State Bank.

Article 15.- The administration, execution and control, the internal inspection and auditing systems of financial leasing companies shall comply with the provisions of Sections 3 and 4, Chapter II of the Law on Credit Institutions.