Note on Setting up a Representative Office in Vietnam

 Note on Setting up a Representative Office in Vietnam 

Setting up a representative office is considered one of the simplest forms of investment in Vietnam.

The representative office will help the foreign trader to lease office, hire people, open bank account, and promote the business activities in Vietnam market. The chief representative if being foreigner will then could apply for work permit and temporary residence card to stay in Vietnam.  There is no income tax as the representative office therefore the liability to maintain a representative office is less hassle.  When the purpose of setting up representative office in Vietnam has been achieved, the closing down of the business shall be not as challenging as closing down a company.

According to Vietnam laws, representative office is a dependent unit, representing the foreign entity’s interests in Vietnam. Representative office is established by foreign entities to help them liaise, implement research activities, provide information and support them in seeking new partners as well as having understanding of the new market.

The foreign entity has to meet certain conditions before setting up representative office in Vietnam. It has rights and duties in accordance with Vietnam laws.

When preparing the application for license of representative office in Vietnam, the foreign entities have to note the following.

Prepare the application forms

The application forms as issued by Ministry of Industry and Trade. The application must be signed by legal representative of the foreign entity;

Notarize, legalize and authenticate documents

The foreign entity has to prepare and provide business registration certificate, audited financial report, charter, and office lease memorandum of understanding, passport of the legal representatives of the Representative Office in Vietnam. The documents issued in foreign countries have to be notarized, legalized and authenticated (apostille procedures) in accordance with Vietnam laws to be used in Vietnam. If the business registration certificate or alternative documents have expiry date for business entity’s operation, the remaining time must be at least one year;

Who should be the chief representative?

The Chief Representative of the Representative Office in Vietnam must be different from the Director of the foreign entity.

How long does it take?

It would take around 20 business days since application until receiving the business operation registration of representative office.

ANT Lawyers – A Law firm in Vietnam has law offices in Hanoi, Ho Chi Minh City and Da Nang.  The lawyers at each law offices in Vietnam have consistently made valuable and important contributions to our profession through the cases we handled on daily basis to facilitate business transaction or represented our clients to access justice.

 

 

 

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Temporary residence card in Vietnam

If a foreigner have been sponsored work permit in Vietnam to work or he/she decides to set up a company in Vietnam, he/she could be granted temporary residence card to live in Vietnam instead of applying and re-newing business or travel visas every three months.

 

We detail here some procedures which help foreigners to prepare for before applying for temporary residence card.

I. Subjects to be granted temporary residence card

-Members of foreign representative agencies and their accompanying relatives (father, mother, wife, husband, children under 18 years old).

-Foreigners who work with the Institute of the Supreme People’s Procuracy, the Supreme People’s Court, the ministries, ministerial-level agencies, agencies attached to the Government and People’s Committees of provinces and cities directly under the Central Government and the Central offices of mass organizations, mass organizations.

-Foreigners who work in projects already approved by competent state agencies licensed in Vietnam.

-Foreigners who work with businesses in Vietnam has the work permit valued more than 01 year.

-Persons on the payroll of foreign representative offices and branches of economic organization, culture and other professional organizations of foreign non-governmental organizations based in Vietnam.

-Foreigners staying in Vietnam for other purposes.

II. Conditions for implementation

+ Time to stay in Vietnam more than 01 year;

+ Valid passport more than 01 year;

III. The composition, the number of records

1) The composition profile, including

-A written request of agencies, organizations and individuals offering, guarantee and propose for temporary residence card;

-01 declaration of information of foreigners who apply for temporary residence, with photos and sealed by the agency or organization: A written request for temporary residence card (Form N7A); a declaration about Foreigners applying for temporary resident card (Form N7B)

-02 3 x4 cm size photographs;

-01 copies of passport, valid visa, immigration cards (bring original for comparison);

-01 copies or photo (bring the original for comparison) proof of purpose to stay in Vietnam.

As the case may file appropriate documents: investment licenses, permits the establishment of enterprises, work permit in Vietnam, certificate of board members and permits the establishment of representative offices, marriage/birth registration.

2) The number of records: 01 (one).

IV. Implementing agencies administrative procedures:

Immigration management Department, Police provinces and cities directly under the Central Government.

V. Implementation time: 05 to 07 days;

VI. Subjects performed:  by organizations and individuals;

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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Temporarily Stop Granting Work Permits to Foreigners Originating from Infected Area Because of Covid-19

An outbreak of acute respiratory infections caused by a new strain of Corona virus (nCoV) was first detected in Wuhan City, Hubei Province, China in December 2019. Up to now, the disease has spread to many cities in China and more than 20 countries in the world including Vietnam. Facing new complicated movements of the acute respiratory disease epidemic caused by a new strain of Corona virus (Covid-19), on February 2^nd, 2020, the Vietnam Minister of Labor, War Invalids and Social Affairs issued Official Dispatch No. 01/CD-LDTBXH on strengthening measures to prevent and control Covid-19 epidemics through the tighter control of immigration process, including the grant of visa, work permit, temporary residence card for foreigners originating from infected area.

Immigration Lawyers in Vietnam

Accordingly, the Ministry of Labor, War Invalids and Social Affairs shall propose the Employment Department and the Department of Labor, War Invalids and Social Affairs, the Management Boards of industrial parks, export processing zones and economic zones of localities to temporarily stop granting work permit for foreign workers from epidemic areas during the time when Vietnam declared the disease. This affects the entry into Vietnam of foreign workers who have not yet been granted a work permit under the law. According to Article 10 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014; Point c Clause 4 Article 1 of the Law on Entry, exit, transit and residence of foreigners in Vietnam amended in 2019; Clause 16, Article 1 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam amended in 2019 foreign workers to be granted LD1, LD2 visas and temporary residence cards of the same type, should be issued with a work permit in Vietnam. In addition, foreign investors in Vietnam are also affected, because the temporarily stoppage of granting of work permits will also affect the application for certification of foreign workers’ eligibility for exemption from work permit for investors, it also affects the foreign investor’s temporary residence card application.

In addition, it is required that enterprises and organizations employing foreign workers to temporarily stop accepting workers from China returning Vietnam after Tet holiday to work and foreign workers moving to endemic areas during the Covid-19 epidemic announcement. In case of having received such, the enterprise must report the list of employees who have just returned to Vietnam from China with the necessary information as required, carry out isolation measures at places of residence and workplaces under the guidance of the health authorities, and at the same time monitor and examine health within 14 days from the date of entry into Vietnam.

Labour lawyers at ANT Lawyers shall closely monitor the changes of labour law to provide client with update.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

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Highlights in the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2020

Foreigners investing in Vietnam need to travel to Vietnam on investment purpose with the right visa supporting their purpose to comply with the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam.

On November 25, 2019, the XIV National Assembly officially passed the Law on Entry, exit, transit, and residence of foreigners in Vietnam amended in 2019. This amendment provides many new highlights about the immigration of foreigners.

What are visas suitable for the investors?

Investor visa is divided into 04 categories: DT1, DT2, DT3 and DT4. The classification is based on invested capital and investment industry. For example, DT1 visas are issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of VND 100 billion or more or investment in preferential industries and trades. Investment and geographical areas eligible for investment incentives are decided by the Government.

How electronic visa can be applied and issued?

Visas issued through electronic transactions are electronic visas. Foreigner and the agency or organization sponsoring for a foreigner has the right to apply for an electronic visa. Immigration authorities shall consider, process and respond to applicants for electronic visas at the e-visa information page within 03 working days from the date of receipt of sufficient information for electronic visa application and visa fee.

How to change visa type caused by change of immigration purpose?

Currently, the visa type corresponding to purpose of immigration of foreigners in Vietnam cannot be changed. In case a foreigner wishes to change visa purposes, he / she must exit Vietnam and apply for a new visa supporting the new purpose making foreigners facing challenges to manage their work, and life and associated costs and time. However, according to the provisions of new the Law on entry, exit, transit, and residence of foreigners in Vietnam, there are 03 cases of visa conversion purposes: i) have proof of being an investor or representatives of foreign organizations investing in Vietnam according to the provisions of Vietnamese law; ii) have documents proving that the relationship being father, mother, wife, husband, children with the applicant; iii) being invited or sponsored by an agency or organization or working with an electronic visa, having a work permit in Vietnam or certifying that it is not subject to a work permit as prescribed by the Labor Code. In these cases, the foreigner would be granted a new visa with the symbol and duration suitable to the purpose of conversion.

What are additional visa exemption conditions in Vietnam?

Besides inheriting the previous provisions, the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam amended in 2019, adding one more case visa exemption. Foreigners entering coastal economic zones under decisions of the Government and meeting the following conditions: having an international airport; having a separate space; having definite geographical boundaries, separated from the mainland; in accordance with the socio-economic development policy and without prejudice to national defense, national security, social order and safety of Vietnam, visa exemption is required upon entry.

What conditions qualify foreigners for Temporary Residence Card in 2020?

The duration and type of temporary residence cards are granted based on the contributed capital. Accordingly, the duration of temporary residence card DT1 for foreigners investing in Vietnam through direct investment of setting up company, obtaining investment registration certificate, with a capital contribution of 100 billion or more has a term of no more than 10 years. Temporary residence card with the symbol DT2 granted to investors contributing capital from VND 50 billion to less than VND 100 billion has a term of no more than 05 years. Temporary residence card with the symbol DT3 for investors with contributed capital valued from 03 to billion to less than 50 billion dong with duration not exceeding 03 years. And investors using DT4 visas with a capital contribution of less than 03 billion VND are not allowed to be issued temporary residence cards in Vietnam. It is important for foreigners falling under the DT4 category to consult with immigration lawyers in Vietnam to receive advice on proper advice when considering investing less then 03 billion VND.

The Law on entry, exit, transit, and residence of foreigners in Vietnam amended in 2019, will be effective from July 1, 2020.

ANT Lawyers is a law firm in Vietnam located in the business centers of Hanoi, Danang, Ho Chi Minh city. We provide convenient access to our clients. Please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529.

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Temporary residence card for foreigner in Vietnam

If the foreign investor, the employee needs to reside in Vietnam to be able to facilitate the implementation of investment, labor contract, the investor and the employee needs to have the company sponsored and proceed to apply Temporary residence card in accordance with the purpose of residence in Vietnam.

Temporary residence card is a document issued by an immigration authority or a competent authority of the Ministry of Foreign Affairs to a foreigner who is permitted to reside for a limited period of time in Vietnam and is valid for visa replacement. When a temporary residence card is available, the foreign investor or worker will present a temporary residence card instead of a visa when entering, leaving Vietnam and is legally residing in Vietnam.

To avoid administrative fines or deportation for violations of the law on residence in Vietnam, foreign investors and employees need to follow procedures for applying for a temporary residence card suitable for the purpose of entry (symbol visa). Investors, employees who have appropriate entry visas (DT or LD visa) will be considered by the Immigration Authority to grant a temporary residence card.

For the application for a temporary residence card that requires the investor, the employee needs to have all business documents, proving that it is eligible to sponsor a foreigner and enter the country for the right purpose. Request a Certification of exemption from a work permit, work permit, entry visa for the right purpose, legal residence address in Vietnam.

When all of the above conditions are met, investors and employees shall carry out the procedures for applying for temporary residence cards in Vietnam so that they can reside, leave and enter in accordance with law. The duration of the temporary residence card is issued pursuant to the purpose of entry and the proposal of agencies, organizations and individuals. The temporary residence card is from 1 to 5 years but shorter than the passport duration by at least 30 days, specifically:

– Temporary residence cards with symbols NG3, LV1, LV2, ĐT and DH are valid for no more than 05 years.

– Temporary residence cards with symbols NN1, NN2, TT are valid for not more than 03 years.

– Temporary residence cards with the symbol LD and PV1 are valid for no more than 02 years.

When the temporary residence card expires, the foreign individual will be considered to request the sponsored company to apply for a new temporary rresidence card.

Immigration lawyers at ANT Lawyers – Law firm in Vietnam will be capable to assist clients on visa application and working with immigration departments in Vietnam to help clients. The changes of laws will be monitored by ANT Lawyers.  For advice or service request, please contact us via email ant@antlawyers.vn or call +84 28 730 86 529.

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How Foreigners Could Obtain Residence in Vietnam Through Investment Scheme?

Foreigners could reside in Viet Nam under permanent residence or temporary residence status. In particular, foreign investors establishing or contributing capital to companies operating in Vietnam are subject to have temporary residence cards.

Immigration Lawyers in Vietnam

A Temporary Residence Card is the required document for the foreigners to legally stay temporarily in Viet Nam and the maximum term of a card is 05 years. The following will explain how Temporary Residence Card can be obtained in Vietnam through investment.

What are conditions for foreign investors to be granted temporary residence card?

Foreigners whom are granted a visa with a DT sign will be considered for a temporary residence card. The foreigners will need to apply for work permit exemption from authorities in Vietnam. The passport of foreigners has a minimum term of 13 months. Documents proving that foreigners contribute capital to, or invest in, enterprises in Vietnam for instance business registration certificates, investment registration certificates will be required. The foreigners will also need to provide clean criminal record card.

What required documents to be prepared for application for temporary residence card?

1. 01 Document requesting temporary residence card of guarantor ( form NA6 for agencies, organizations; form NA7 for individuals)
2. 01 Information form for a temporary resident card (form NA8)
3. 02 photos (image size 2×3 cm);
4. 01 Copy of passport and a valid visa (bring an original for comparison);
5. 01 Notice of use of the seal of the enterprise.
6. 01 Document introducing seal, signature of the authorized person of the organization (form NA16)
7. 01 Copy of legal ducuments of organizations to prove purpose to be granted temporary residence card, such as: investment registration certificate, business registration certificate.

How long it takes to apply for temporary residence card?

After 5 working days since receiving sufficient documents, state agencies will consider and issue temporary residence cards.

What are procedures to apply for temporary residence card?

Step 1: Prepare documents as prescribed by law.
Step 2: Submit application file
The officer receiving the application will check the legality and the content of the file. If the application is complete and valid, the officer receives the application and prints a receipt for the submitter.
Step 3: Return results

What state authorities to apply for temporary residence card?

Immigration Management Department of province or cities where the investment is registered.

Some difficulties when carrying out the procedure

Everyone can apply for a temporary residence card by themselves, but not all cases are eligible for a temporary residence card. When applying for a temporary residence card, have some difficulties like: the visa is not for right purposes; foreigners don’t understand the required documents, procedures for applying for temporary residence card so that you don’t know how to write the declaration of temporary residence card; have confusion about the declaration form used for individuals and agencies, organizations…. For result, application file is invalid and will be returned. You will have to go to implementing agencies many times to complete application file, which is costly, laborious, time-consuming but not yet available. Therefore, foreigners need the assistance of a reputable law firm to carry out the procedure effectively to be granted temporary residence card.

ANT Lawyers is a Law firm in Vietnam with international standards, recognized by Legal500, IFLR1000. We arre an exclusive Vietnam member of Prae Legal, the global law firm net work covering more than 150 jurisdictions. The firm provides a range of legal services as following to multinational and domestic clients. For advice or service request, please contact us via email ant@antlawyers.vn or call  +84 24 730 86 529. To learn more about us, please visit www.antlawyers.vn

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