Establish representative office in Vietnam

As businesses look to expand their operations into new countries, Vietnam is becoming an increasingly popular destination. With its population of over 90 million and rapidly growing economy, Vietnam offers plenty of opportunity for companies looking to grow their reach. However, before establishing a physical presence in the country, it’s important to consider the various legal and administrative requirements involved in doing so. In this blog post, we’ll discuss the process of setting up a representative office in Vietnam and provide some tips on how to get started. Let’s get started!

The procedure of establishing a representative office in Vietnam is still based on regulations written in Circular No. 11/2016 and Decree 07/2016 BPT( Law on Commerce). With the aim to offer assistance for foreign traders, this article summarulates all relevant information about opening your business’s first-time Representative Offices there as well what you should expect when doing so!

Legal foundation

– Law on Commerce 2006;

– Decree No. 07/2016/ND-CP detailed regulations of establishment of representative offices or branches of foreign traders in Vietnam;

– Circular No. 11/2016/BCT on forms prescribed in Decree No. 07/2016/ND-CP dated January 25, 2016 of the Government on Guidelines for the Law on Commerce in terms off representative offices and branches off foreign traders in Vietnam;

Requirements of establishing representative office in Vietnam

The government has given you an opportunity to establish a representative office in Vietnam. You must meet all the requirements below before being granted this privilege:

– The foreign trader is incorporated and registers for doing business in accordance with provisions of laws of countries or territories being parties to treaties to which Vietnam is a signatory or is recognized by the aforesaid countries or territories;

– The foreign trader has come into operation for at least 01 year from the date of establishment or registration;

– The Certificate of Business Registration or the equivalent document is valid for at least 01 more year from the date of submission of the application;

– The scope of operation of the representative office is consistent with that in Vietnam’s Commitments to treaties to which Vietnam is a signatory;

– Vietnam’s commitments are the only rules that should apply when operating in their country, but if you’re not located there then it’sithor Comparedto other countries with which they have agreements (such as trade), these people need approval from relevant ministers before establishing any kind Ifrepresentative office because its scope inconsistent w/otherwise applicable laws.

An application for License for Establishment of a representative office in Vietnam:

– An application form for License for Establishment of the representative office using the form promulgated by the Ministry of Industry and Trade and signed by a competent representative of the foreign trader.

– Copies of the Certificate of Business Registration or equivalent documents of the foreign trader;

– A letter of appointment of the head of the representative office;

– Copies of audited financial statements or certificates of fulfillment of tax liabilities or financial obligations of the last fiscal year or equivalent documents as proof of existence and operation of the foreign trader issued or certified by competent authorities where such foreign trader is established;

– Copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the head of the representative office;

– Documents on the expected location of the representative office including:

+ Copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the representative office;

+ Copies of documents on the expected location of the representative office in accordance with provisions of locations of representative officeshereof and related law

Documents need to be translated, notarized and certified or legalized by overseas diplomatic mission:

– Documents required to be legalized by overseas diplomatic mission and translated, notarized: Certificate of Business registration.

– Documents required to be translated into Vietnamese and notarized:

+ Passport of the head of representative office;

+ Article of Association

+ Audited financial report or certificates of fulfillment of tax liabilities or financial obligations of the last fiscal year.

The procedure after establishing representative office in Vietnam

– Open a bank account in foreign currency and an expenditure account in Vietnam dong which derives foreign currency at a licensed bank in Vietnam and only use this account for representative office’s operation;

– Annually, by January 30th of the next year, Representative office has to submit documents of report to Department of Industry and Trade;

– Having documents recording all inflows and outflows during representative office’s operation;

– Application for labor license for foreign employees working in representative office (if any);

– Submitting annual operation and getting ratification report to Department of Industry and Trade;

– Signing labor contract with the head of representative office and other employees;

– Foreign traders must confirm income and salary of the head of representative office and other employees;

– Paying personal income tax for the head of representative office and other employees (if any). Notice, after paying tax, representative office should preserve all file of tax declaration, tax payment receipt and tax audit report on behalf of head and employees of representative office.

– Other current regulated obligations.

Conclusion paragraph: Vietnam is an up and coming market with a lot of potential for businesses. The country has seen steady economic growth in recent years, and the population is young and eager to learn about new products and services. If you’re looking to establish a presence in Southeast Asia, Vietnam is a great place to start. Contact us today to find out how we can help you set up shop in this exciting new market.

Hanoi Head-office

F4 Building No 112 Trung Kinh Street, Yen Hoa Ward, Cau Giay District, Hanoi City, Vietnam
(84) 2462852839 – Mobile: (84) 981.378999

Email: lienhe@luathoangphi.vn