The Ministry of Planning and Investment (MPI) has recently revealed a draft decree detailing creative startup investment, which is expected to create a legal framework and provide incentive policies for attracting more investment in this field.
With 40 articles arranged in seven chapters, the draft is now available for public comment at www.mpi.gov.vn.
Under the draft, creative startup companies and investment funds would be exempt from corporate income tax for a definite period of time.
However, the future regulation proposes that creative startup investors must meet certain financial conditions. Specifically, individual investors would be required to have an annual income of VND 200 million for the last two years before filing their investment applications, or total assets, minus their personal debts, of at least VND 500 million. For institutional investors, the total assets recorded in their latest financial statements must be at least VND 1 billion.
Besides, it requires creative startup investors, enterprises, organizations and individuals to reach agreement on to-be-contributed capital value and proportion, shares, and proportion of shares in their future companies. They would also have to take responsibility before law for investment funds’ sources, and comply with the Vietnamese and international laws on money laundering prevention and combat.
This move of MPI is warmly welcomed by the startup community.
Dinh Viet Hung, founder of Design Bold revealed that many Vietnamese startups have registered their businesses in Singapore and the US in order to quickly receive investment funds due to an inadequate legal framework for startups in Vietnam. Therefore, policies to promote startups should be implemented in a prompt and intense manner as startup is a speedy game, he said.- (VLLF)