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Establishing a representative office in Vietnam is a crucial step for businesses to expand their operations and establish a presence in key target countries. The following article will highlight the points that businesses need to consider regarding the establishment procedures for opening representative office in Vietnam.
Documentation Requirements for Establishing Representative Offices in Vietnam
Article 45, Clause 2 of the Enterprise Law 2020 specifies the necessary documents for establishing representative offices, including:
a) Notification of establishment of branch offices or representative offices;
b) Copies of the decision on establishment and minutes of the meeting regarding the establishment of branch offices or representative offices of the enterprise;
c) Copies of legal documents of individuals holding positions at branch offices or representative offices.
Establishment Procedures for Representative Offices in Vietnam
The establishment procedures for opening representative office in Vietnam include the following steps:
Step 1: Foreign traders can submit application documents directly, by post, or online (if permitted) to the licensing authority at the intended location for establishing the representative office.
Step 2: Within 03 working days from the date of receiving the application dossier, the registration authority will review and request additional documents if necessary. Requests for additional documents can only be made once. Unless otherwise stipulated in Clause 4 of Article 11 of Decree 07/2016/ND-CP, within 07 working days from receiving a complete and valid dossier, the registration authority will issue or refuse to issue the License.
Step 3: If the provisions of Clause 5 of Article 7 of Decree 07/2016/ND-CP apply, or if there are no specific provisions, the registration authority will send a letter to solicit opinions from the specialized management agency within 03 working days from receiving a complete and valid dossier.
Step 4: The specialized management agency provides results (if necessary) within 05 working days from receiving the request for opinions from the licensing authority, including consent or refusal to issue the license.
Step 5: Upon receiving the opinion of the specialized management agency, the registration authority will issue or refuse to issue the License. In case of refusal, the reason will be clearly stated in the document.
Step 6: After obtaining the license, the enterprise will create a round seal and register the seal sample of the representative office in Vietnam.
Step 7: Finally, the enterprise registers for the tax identification number of the representative office.
Procedures After Establishing Representative Offices
After opening representative office in Vietnam, the enterprise needs to undertake the following procedures:
- Open a bank account to conduct financial transactions and manage finances of the representative office (open a specialized account in foreign currency and a specialized account in Vietnamese dong with foreign currency origin at a bank licensed to operate in Vietnam).
- Submit annual reports on the activities of the representative office to the Department of Industry and Trade before January 30th each year, according to the prescribed form of the management agency.
- Apply for work permits for foreign workers (if any) working in Vietnam.
- Pay personal income tax and insurance for the employees of the representative office (if any), while retaining all tax declarations and tax payment receipts as required by the state authorities.
*** ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.
