Establishing a representative office of a foreign-invested company in Vietnam
1. Legal grounds
– Law on Investment 2020;
– Commercial Law 2005;
– Decree 07/2016/ND-CP detailing the Commercial Law on representative offices and branches of foreign traders in Vietnam
2. What is a representative office?
A representative office is a dependent unit of an enterprise, which has the task of representing by authorization for the interests of the enterprise and protecting those interests. An enterprise has the right to establish a representative office in a locality according to the administrative division boundaries. So, what are the requirements for setting up a representative office and how to prepare documents? How is the procedure performed?
3. Conditions for granting a representative office establishment license:
– Foreign traders may establish and register their business in accordance with the laws of countries or territories participating in international treaties to which Vietnam is a contracting party or recognized by the laws of these countries and territories. take;
– Foreign traders have operated for at least 01 year from the date of establishment or registration. In case the business registration certificate or paper of equivalent validity of the foreign trader stipulates the operation term, such time limit must be at least 01 year from the date of application submission;
– The operation contents of the representative office must be consistent with Vietnam’s commitments in international treaties to which Vietnam is a signatory;
– In case the operation content of the representative office is not consistent with the commitments of Vietnam or the foreign trader does not belong to a country or territory participating in an international treaty to which Vietnam is a contracting party, the establishment A representative office must be approved by a minister or head of a specialized management ministerial-level agency (hereinafter referred to as the minister of specialized management).
4. Term of Representative Office Establishment Certificate
The foreign trader’s branch establishment license is valid for 5 years but must not exceed the remaining term of the business registration certificate or equivalent document of the foreign trader in case such papers contain deadline regulations.
5. License file
When meeting the establishment conditions, traders need to prepare a set of documents including:
– An application form for a representative office establishment license, made according to the form of the Ministry of Industry and Trade;
– A copy of the business registration certificate or an equivalent document of the foreign trader. This copy must be certified or legalized by a diplomatic mission or consular office of Vietnam abroad in accordance with Vietnamese law.
– The document of the foreign trader appointing/appointing the head of the representative office;
– A copy of the audited financial statement or a document certifying the fulfillment of tax or financial obligations in the latest fiscal year or a paper of equivalent value issued by a competent agency or organization where the trader is located. established foreign traders grant or certify and prove the existence and operation of foreign traders in the latest fiscal year;
– Copy of passport or identity card or citizen identification card (if Vietnamese) or passport copy (if foreigner) of the head of the representative office;
Documents on the proposed location of the representative office’s headquarters include:
– A copy of the memorandum of understanding or agreement to rent the location or a copy of the document proving that the trader has the right to exploit and use the location to locate the representative office;
– A copy of the document on the proposed location of the representative office’s head office in accordance with relevant laws.
Note: Non-Vietnamese documents must be translated and notarized according to Vietnamese regulations.
6. Order and procedures for applying for a license
Apply in person or by mail or online
Within 07 working days from the date of receipt of complete and valid dossiers, the licensing agency shall grant or not grant a license to establish a representative office for the foreign trader. In case of refusal, there must be a written explanation clearly stating the reason.
7. Process of setting up a representative office for a foreign company
Khoa Tin Law will implement the work right from the time of signing a service contract with customers.
Time to complete the procedure is from 10 to 15 working days from the date of valid dossier (not including the time to carry out the seal issuance procedure).
Above is the advice of Khoa Tin Law on “Establishment of representative offices of foreign-invested companies in Vietnam”
In case customers have unclear issues or need to discuss further, please call us immediately at 0983.533.005 for a free consultation.
Best regards./.
Latest news