Inquiry for establishing branch in Vietnam
We, B Consulting, are associate legal firm & consulting for investing to overseas and domestic by Korean & foreigner.
One of my Korean client want to establish branch in Bac Ninh or other City Vietnam.
This company has local company in Ho Chi Minh but Parent company want to establish another branch in Bac Ninh area or other possible area in Vietnam.
The purpose of this branch is such as agency for ordering to other factory in Vietnam to manufacture of a part of Mobile which is high tech product.
I attach Korea and Vietnam Biz License and relate certificate of this company.
This company has accepted to change to company biz type in Korea and Vietnam as well, if it has to for establishing branch.
Therefore, I would like to exchange the solution/opinion or any possible way with you.
I hope you hearing any good solution for.
ASL LAW’S ADVICE
Dear Mr. Cho,
We are so glad that we could have an opportunity to cooperate with your firm. We do hope that from now on, a long—term co-operation shall be soon set up between us.
Follow to your enquiry about the matter for establishing branch in Vietnam, we would like hereinafter to send you the legal service proposal as follow:
First of all, according to the business license of Vietnamese company which you provided us, we found that it was located in Bac Ninh Province. However, it does not matter if establishing branch in Vietnam at a same area or other area as well.
Secondly, a branch is an unit dependent on the enterprise and obliged to perform part or all of the enterprise’s functions, including representation under authorization. Moreover, branch is the legal entity and has its own seal. Besides, the business lines of the branch must be consistent with those of the enterprise. It means that, if the local company in Ho Chi Minh does not have the business lines which branch want to conduct, this local company has to add these lines into their business lines list first, then set up a branch for its purpose.
Third, for establishing a branch in Vietnam, it requires the local company to grant such an amount of money for the Investment Project of the branch. Therefore, local company has to increase the charter capital which proves ability to conduct the branch. The changing of company type is not necessary for this case.
Fourth, in regard to manufacturing or producing, the branch should be located in Industrial Zone – where specializes in production of industrial goods and in provision of services for industrial production and gives more tax incentives as well.
The aforementioned information is our basic consulting about establishing branch in Vietnam. If you have any query, please do not hesitate to contact us. We can discuss further to find out the best solution for your clients and our relationship also. Once again, thank you for contacting with us. Hope that we can become a partner in the near future.