Science/technology

Detailed regulation on funds for innovative startup introduced

The government has just issued Decree No.38/2018/ND-CP on regulation for investment into small and medium startup and innovative firms.

Accordingly, investors can raise capital for a startup fund in Vietnam dong, gold, land use right, and other assets that can be valued in Vietnam dong. However, they are not allowed to use loans to contribute to any innovative startup fund.

Regarding investment activities, the Decree states that investors cannot deposit more than 50 percent of the charter capital of small and medium startup and innovative firms. All the capital contributions and assets of investors of a fund must be audited independently from their fund management company. 

All investors of a fund arrange among themselves the right to decide investment fields, which must be clearly stated in the fund regulations as well as the contract between investors with their fund management company if available.

In addition, investors of a fund can found or hire a fund management company who will be responsible for procedures to set up the fund and announcements on additional investment sectors and fields under the provisions of the government’s regulations on enterprise registration.

 

By GIA QUANG – Translated by Yen Nhi

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