Licensing Dossier for a Microfinance Institution Organized as a Single-Member LLC

Short answer: The licensing dossier of a microfinance institution organized as a single-member limited liability company is now prepared underCircular No. 33/2024/TT-NHNN (on dossiers and procedures for licensing the organization and operation of microfinance institutions), on the basis ofthe Law on Credit Institutions 2024 (No. 32/2024/QH15). The old provisions of the Law on Credit Institutions 2010 and Circular 03/2018/TT-NHNN no longer apply.

Current legal framework

The Law on Credit Institutions 2024 (No. 32/2024/QH15) governs the organization and operation of credit institutions, including microfinance institutions. To guide licensing dossiers and procedures, the State Bank of Vietnam issued Circular No. 33/2024/TT-NHNN on dossiers and procedures for licensing the organization and operation of microfinance institutions. The dossier of a microfinance institution organized as a single-member limited liability company is set out inArticle 7 of Circular 33/2024/TT-NHNN.

The licensing process has two stages: (1) in-principle approval and (2) license issuance.

Stage 1: Dossier for in-principle approval

Under Circular 33/2024/TT-NHNN, the dossier requesting the State Bank of Vietnam’s in-principle approval for establishing a microfinance institution organized as a single-member limited liability company includes:

• The application for in-principle approval usingAppendix 01 issued with the Circular;
• The draft charter of the microfinance institution;
• The establishment plan of the microfinance institution (organizational model, operational plan, business plan);
• Dossiers of the owner and proposed personnel (curriculum vitae, diplomas, certificates, papers evidencing capacity and experience as prescribed);
• Other related documents as prescribed by the Circular.

Stage 2: Dossier for license issuance

Within60 days from the date of the State Bank of Vietnam’s in-principle approval, the owner must submit the dossier requesting license issuance, whose core documents include:

• The charter of the microfinance institutionas adopted by the Members’ Council;
• The owner’s decision on appointing management and executive positions (Chairman of the Members’ Council, General Director/Director, Head of the Supervisory Board/Supervisor and other positions as prescribed);
• Additional and finalized documents as required in the in-principle approval document.

Processing time of the State Bank of Vietnam

• Within05 working days from the date of receipt of the dossier, the State Bank of Vietnam issues a written confirmation of receipt of a complete and valid dossier (or requests supplementation if the dossier is incomplete);
• Within30 days from the date of receipt of the complete and valid dossier, the State Bank of Vietnam considers and grants the license or refuses in writing with reasons stated.