Mr. Tran Van Quang's company (HCMC) has foreign investment capital, the director is a foreigner and has not been able to come to Vietnam due to the impact of the epidemic. Currently, the company needs to open a capital account to contribute capital as well as a payment account to operate its business.

Mr. Quang asked, when carrying out the procedures to open a company account, is it required that the account holder of the business is the legal representative who must be in Vietnam? Does the director need to provide a visa when opening an account for the company?

Company director Mr. Quang often travels between different countries. Therefore, if the director is required to be present when carrying out procedures or providing visas, it will cause difficulties and obstacles for foreign businesses like Mr. Quang’s company.

The State Bank of Vietnam responded to this issue as follows:

Regarding documents and procedures for opening payment accounts for organizations, Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the State Bank of Vietnam guiding the opening and use of payment accounts at organizations Payment service providers (amended and supplemented in Circular No. 16/2020/TT-NHNN) stipulates as follows:

- In Article 12 of the application for opening a payment account, for an individual's current account, it must include at least the following documents:

"a) An application form for opening a payment account, made according to the form of the bank or foreign bank branch where the account is opened;

b) Personal papers including citizen identification card or people's identity card or valid passport or birth certificate (for individuals who are Vietnamese citizens who are under 14 years old and do not have a passport); a valid entry visa or papers proving that they are exempt from entry visas (for individuals who are foreigners), except for cases where the individual is a foreigner who opens a payment account as prescribed in Clause 4 of this Article 14 of this Circular".

For an organization's current account, include at least the following documents:

"a) An application form for opening a payment account, made according to the form of the bank or foreign bank branch where the account is opened;

b) Papers proving that the organization opening a payment account is established and operates legally: Decision on establishment, operation license, certificate of business registration or other documents as prescribed by law:

c) Papers proving the legal representative's status as a representative together with the identification papers of such persons;

d) Decision on appointment of chief accountant or person in charge of accounting”.

- In Article 14 on the order and procedures for opening a payment account:

For payment accounts of organizations: "Banks, foreign bank branches are allowed to meet or not face-to-face with the legal representative of the customer when entering into an agreement to open and use a payment account. 

In case of not directly meeting the legal representative of the customer, the bank must apply appropriate measures to verify the accuracy of the signature, seal (if any), digital certificate (if any) of the legal representative of the account holder on the agreement to open and use the payment account and ensure the correct match with the signature, seal (if any), digital certificate (if any) of the legal representative 2 of the account holder during the use of the payment account;…

4. In case the customer is an individual overseas, the bank or foreign bank branch may open an account without meeting the customer face-to-face but must verify the customer identification information through the representative bank or an intermediary and must ensure accurate verification of the customer opening the account and take full responsibility for the identification and verification of the customer opening a payment account at his/her unit. The selection of an intermediary to verify customer identification information must comply with the provisions of the law on prevention and combat of money laundering”.

Based on the above quotation, for customers being organizations, the bank may or may not meet face-to-face with the legal representative of the customer when entering into an agreement to open and use a payment account.

In case the customer is abroad, does not meet face-to-face, the bank will verify the identification information through a correspondent bank or an intermediary in accordance with the provisions of the law on prevention and combat of money laundering and does not require a visa.

Mr. Quang needs to contact the bank for instructions on procedures and documents to open a payment account in accordance with the law.