What is a BCC contract?

“business cooperation contract” means a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization. (according to Clause 14, Article 3 of Law on Investment 2020).

Accordingly, it can be understood that the nature of a BCC contract is a contract signed between two or more entities that have a common business project and want to implement it together but do not want to establish an economic organization.

Content of BCC contract

According to Article 27 of the Law on Investment 2020, the BCC contract is signed between:

- Business cooperation contracts signed between domestic investors shall be executed in accordance with the civil law.

- Procedures for issuance of investment registration certificates in Article 38 of this Law shall apply to business cooperation contracts signed between a domestic investor and a foreign investor, or between foreign investors.

- Parties to a business cooperation contract shall establish a coordinating board to execute the BCC. Functions, tasks and powers of the coordinating board shall be agreed upon by the parties

Pursuant to Article 28 of the Investment Law, the BCC contract includes the following main contents:

- Names, addresses and authorized representatives of parties to the contract; business address or project address;

- Objectives and scope of business;

- Contributions by the parties to the contract, and distribution of business investment results between the parties;

- Schedule and duration of the contract;

- Rights and obligations of parties to the contract;

- Adjustment, transfer and termination of the contract;

- Responsibilities for breaches of the contract; method of dispute settlement.

In addition, the parties to a business cooperation contract are entitled to agree upon other items which are not contrary to law.