How Foreign Entity Could Set up a Branch Office in Vietnam
A foreign business
entity or a foreign trader is allowed to set up a branch office in Vietnam to
conduct business activities.
How to
Set up branch office in Vietnam?
Having the right to conduct
business activities and make profit are how a branch differs from
a representative
office in Vietnam. A branch depends on the foreign business entity
that set-up the branch while a foreign owned company set-up in Vietnam exists
by itself. The Vietnam Department of Industry and Trade will be approving the
establishment of a branch office in Vietnam while Vietnam Ministry of Planning
and Investment will be the State agency that coordinate the setting up a company in Vietnam.
In particular, the
branch of a foreign business entity in Vietnam (referred to as the “Branch”)
means a subsidiary unit of the foreign business entity, established in
accordance with the law of Vietnam in order to enter into contracts in Vietnam
and conduct activities being the purchase and sale of goods and other
commercial activities consistent with its licence for establishment in
accordance with the law of Vietnam and any international treaty to which the
Socialist Republic of Vietnam is a member.
The Branch will need to
apply and obtain the establishment license; and have a seal bearing the name of
the branch.
1. Rights of the Branch
-To rent offices and to
lease or purchase the equipment and facilities necessary for the operation of
the branch.
-To recruit Vietnamese
and foreign employees to work for the branch in accordance with the law of
Vietnam.
-To enter into contracts
in Vietnam in accordance with the activities stated in the license for
establishment of such branch and in accordance with the Vietnam Law.
-To open Vietnamese dong
and foreign currency accounts at banks which are licensed to operate in
Vietnam.
-To remit profits abroad
in accordance with the law of Vietnam.
-To have a seal bearing
the name of the branch in accordance with the law of Vietnam.
-To conduct activities
being the purchase and sale of goods and other commercial activities consistent
with its license for establishment in accordance with the law of Vietnam and
any international treaty to which the Socialist Republic of Vietnam is a
member.
2. Requested Conditions
for Establishment the Branch Office in Vietnam
A foreign company which
has effectiveness business activities will be allowed to open the branch office
in Vietnam if this company has real demand to open the market in Vietnam and
meet some conditions as below:
-Being a trader recognized by the law of the
country where it has been lawfully established or made its business
registration;
-Having been operating for at least five years
after its lawful establishment or business registration certificate in Vietnam.
3. Issuance the
Certificate of Branch:
The issuance of the
Certificate of Branch will be implemented by the Department of Industry and
Trade Department after the foreign company meets all of conditions as Vietnam
legal requirements.
The issuing period will
be within 20 working-days after the date of submitting the full valid documents
as requested.
With highly professional
staff and great experience in investment in Vietnam, ANT Lawyers – English speaking law firm in Vietnam would like to support you to set up the branch office in Vietnam
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