In the trend of globalization integration along with the development of trade and transfer of production technology, Vietnam is gradually becoming an attractive investment destination, attracting a lot of multinational corporations and foreign enterprises to invest. The demand for the establishment of foreign company representative offices in Vietnam is also increasing. So what conditions and procedures should be set up for the establishment of a foreign company representative office? This article will help you!
What is a representative office?
According to the Enterprise Law 2020, the representative office is a dependent unit of the enterprise, which is responsible for authorized representation of the interests of enterprises and protects those interests.
It can therefore be understood that the Representative Office of a foreign company in Vietnam is a dependent unit of that foreign company, established under Vietnamese law with the function of conducting market surveys and conducting trade promotion activities to the extent permitted by Vietnamese law.
Conditions for establishment of representative offices
According to Decree No. 07/2016/ND-CP, foreign traders are granted licenses to establish representative offices in Vietnam when meeting the following conditions:
- Foreign traders shall be established and registered for business in accordance with national laws and territories participating in international treaties to which Vietnam is a member or recognized by the laws of these countries and territories.
- Foreign traders have been in operation for at least 01 year, from the date of establishment or registration.
- In case the business registration papers or papers of equivalent value of foreign traders have stipulated the operating term, that time limit must be at least 01 year from the date of submission of the dossier.
- The content of the representative office's activities must be in line with Vietnam's commitments in international treaties to which Vietnam is a member.
- In case the contents of the representative office's activities are inconsistent with the commitments of Vietnam or foreign traders who are not part of the countries or territories participating in international treaties to which Vietnam is a member, the establishment of a representative office must be approved by the Minister, Heads of specialized ministerial-level agencies.
Note:
The documents should be consular legalized in accordance with the current law of Vietnam.
Establishment process
Step 1: Prepare the file
The file includes the following documents:
- Application for the establishment of a representative office of a foreign company in Vietnam.
- A copy of the enterprise registration certificate or papers of equivalent value of the foreign trader shall be certified by the competent authority where the foreign company established.
- Written appointment of the head of the representative office of the foreign company.
- A copy of an audited financial statement or a document confirming the performance of tax or financial obligations in the most recent fiscal year or papers of equivalent value issued or certified by competent agencies or organizations where foreign traders are established, demonstrate the existence and activity of foreign traders in the most recent fiscal year.
- A copy of the passport or id card or id card (if a Vietnamese) or a copy of the passport (if a foreigner) of the head of the representative office.
- Documents on the location of the representative office are expected to include:
- The lease of the office certifies.
- Notarized certificate of land use right of the lessee (if the enterprise's lease needs to provide additional business registration certificates with real estate business functions).
*Note: Documents in foreign languages must be consularly legally and notarized vietnamese in accordance with Vietnamese law.
Step 2: Apply
The dossier is submitted at the local Department of Industry and Trade where the representative office is located.
Step 3: Get the results
Thanhlap.wacontre.com consulting services
- Prior consultation on issues related to the establishment of a foreign company representative office in Vietnam
- Drafting dossiers for establishment of representative offices of foreign companies in Vietnam in accordance with customer requirements and provisions of law
- Apply for a license to establish a representative office of a foreign company in Vietnam
- Advising on procedures after establishment of a representative office of a foreign company in Vietnam
If you have any questions, please contact hotline (033) 534 4640 for advice and support quickly. Thanhlap.wacontre.com service is always ready to serve customers in the most enthusiastic and effective way. (For Japanese customers can contact via Hotline: (050) 5534 5505.)
