Service of establishing a foreign branch in Vietnam

Procedures for setting up a branch of a foreign company in Vietnam?

Dossier, procedures and services for establishing branches of foreign companies are reputable and fast. Setting up a branch for what? To expand business activities, establishing a branch is something that businesses will think about. The establishment of a company branch for convenience later requires a certain understanding of tax and corporate law. With many years of experience in the field of corporate law, Van Luat provides comprehensive advice to help businesses expand their business activities when opening a branch of a foreign company in Vietnam.

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What is a branch of a foreign trader in Vietnam?

A branch of a foreign trader in Vietnam is a dependent unit of the foreign trader, established and conducting commercial activities in Vietnam in accordance with the provisions of Vietnamese law or an international treaty to which the Socialist Republic of Vietnam is a member. Vietnamism is a member. Vietnameseism is a member.

Branches of foreign traders

According to the provisions of the Commercial Law 2005, a branch of a foreign trader in Vietnam is a dependent company of the foreign trader and is allowed to build brands and conduct commercial activities in Vietnam in accordance with the law. . Vietnam or an international treaty to which the Socialist Republic of Vietnam is a signatory.

Foreign traders are not allowed to set up more than one representative office or branch with the same name in a province or centrally run city.

Foreign traders must bear obligations before Vietnamese law for all activities of their representative offices and branches in Vietnam.

Conditions for establishing branches of foreign traders

According to the guidance in Article 8 of Decree No. 07/2016 / ND-CP, Conditions for grant of branch establishment licenses

A foreign trader may be licensed to establish a branch when meeting the following conditions:

1. The foreign trader has been established or has registered its operation under the law of a country or territory being member to a treaty to which Vietnam is a contracting party or recognized by the law of such country or territory.
2. The foreign trader has been operating for at least 5 years since its establishment or business registration.
3. In case the foreign trader’s business registration certificate or equivalent paper indicates its term of operation, the remaining term must be at least one year by the date of submission of the application.
4. Contents of operation of the branch must comply with Vietnam’s commitments to market access in treaties to which Vietnam is a contracting party and with the business lines of the foreign trader.
5. In case contents of operation of the branch fail to comply with Vietnam’s commitments or the foreign trader is not located in a country or territory being member to a treaty to which Vietnam is a contracting party, the establishment of such branch shall be approved by the minister of the line ministry concerned.

Rights and obligations of foreign branches in Vietnam

Branches provide services in service industries, except for service industries where the establishment of branches in that field is prescribed in specialized legal documents. In case a branch operates in industries and trades for which all conditions are required by law, the branch may only operate when fully satisfying the prescribed conditions.

Branch rights

– Renting the office, hiring and purchasing the necessary means and supplies for the branch’s operations.

– Recruit Vietnamese and foreigners to work at the Branch in accordance with Vietnamese law.

– Enter into contracts in Vietnam in accordance with the operation contents specified in the License for establishment of the branch and the provisions of the Commercial Law 2005.

– Open an account in Vietnam dong or in foreign currency at a bank licensed to operate in Vietnam.

– Remittance of profits abroad in accordance with Vietnamese law.

– Having a seal bearing the branch’s name in accordance with Vietnamese law.

– Carrying out goods sale and purchase activities and other commercial activities under the establishment license in accordance with the provisions of Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a signatory.

– Other rights as provided for by law.

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Obligations of the branch

– Implement the accounting regime according to the provisions of Vietnamese law; In case it is necessary to apply another commonly used accounting system, it must be approved by the Ministry of Finance of the Socialist Republic of Vietnam.

– Report on the operation of the branch in accordance with the law of Vietnam.

– Other obligations as prescribed by law.

Authority to allow foreign traders to operate

The authority to allow foreign traders to appear on the market Branches of foreign companies are prescribed as follows:

– The Ministry of Industry and Trade shall grant the branch branding license if the branch establishment has not been specified in specialized legal documents;

– In case the specialized law has specific provisions on the competence of ministries or ministerial-level agencies to manage the grant of licenses to foreign traders to conduct commercial activities in Vietnam, the provisions of specialized laws shall apply. branch. that industry.

Thus, foreign traders wishing to establish a branch in Vietnam need to fully satisfy the conditions specified in Article 8 of Decree No. of the competent authority before operating. And there is only one representative office or a branch with the same name that is branded within the province or city directly under the Central Government. The rights and obligations of branches of water traders do not comply with the provisions of the Commercial Law 2005 and other legal documents of Vietnam.

Service packages for establishing foreign branches in Vietnam

Accounting PL provides many types of accounting services for customers to choose according to the needs and finances of the business.

SERVICE PACKAGES FOR BUSINESS ESTABLISHMENT
	Pack 1	Pack  2	Pack  3	Pack 4	Pack 5
Certificate of business registration	ü	ü	ü	ü	ü
Company round mark	ü	ü	ü	ü	ü
Notice of seal sample	ü	ü	ü	ü	ü
Electronic Signature	û	One year	Three years	One  years	Three years
Electronic invoice 300 numbers	û	û	û	ü	ü
Give away the license declaration package	û	û	ü	ü	ü
Free declaration for the first quarter	û	û	ü	ü	ü
PRICE	499.000 VND	1.400.000 VND	1.900.000 VND	2.300.000 VND	2.900.000 VND

Dossier to establish a branch of a foreign enterprise

Profile 01 set includes:

• An application form for a branch establishment license, made according to a form signed by a competent representative of the foreign trader;
• A copy of the business registration certificate or equivalent document of the foreign trader;
• Written appointment/appointment of the head of the branch of the foreign trader;
• A copy of the audited financial statement or the document certifying the fulfillment of tax and 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. headquarters. foreign business establishments issue or certify, prove the existence and operation of foreign traders in the latest fiscal year;
• Copy of the Charter of the Branch;
• Copy of passport or identity card or citizen identification card (if Vietnamese) or passport copy (if foreigner) of the head of the branch;
• Documents on the proposed location of the branch office, including: A copy of the memorandum of understanding or agreement on leasing the location or a copy of the document proving that the trader has the right to exploit and use the location to set up the location. branch headquarters. Branch.

Documents in the application file must be translated into Vietnamese and authenticated in accordance with Vietnamese law, especially the business registration certificate must be certified by the diplomatic mission or consular office of the country. Vietnam abroad. consular receipt or legalization in accordance with Vietnamese law.

Procedures for setting up a branch of a foreign company

• Foreign traders submit dossiers directly or by post or trực tuyến (if any) to the licensing agency.
• Within 03 working days from the date of receipt of the dossier, the licensing agency shall examine and request supplementation if the dossier is incomplete or invalid. The request for additional records is made at most once during the processing of the application.
• Within 07 working days from the date of receipt of complete and valid dossiers, the licensing agency shall grant or refuse to grant a branch establishment license to the foreign trader. In case of refusal, the reason must be clearly stated in writing.

Note: In case the operation contents of the Branch are not consistent with the commitments of Vietnam or foreign businessmen, except for cases not belonging to a country or territory participating in an international treaty to which Vietnam is a contracting party , and where the Affiliate is present in the market. which have not been specified in specialized legal documents, the licensing agency shall consult in writing with the specialized management ministry.

Service of setting up a branch of a foreign company in Vietnam

Along with the service of establishing a foreign-invested company, Van Luat’s service of establishing a branch of a foreign company in Vietnam is also a strength in recent years.

1. Consulting and answering questions about setting up branches of foreign enterprises

We will advise and answer questions, as well as guide customers how to

• Conditions for establishing branches;
• Model and organizational structure of the branch in accordance with the law of Vietnam;
• Business conditions of the industry or trade in which the branch has registered to operate;
• Rights and obligations of the branch.
• Consulting on specific financial and accounting contents for branches of foreign companies…

1. Prepare dossiers and carry out procedures for licensing the establishment of branches of foreign enterprises
2. Coordinating with competent agencies in seeking opinions from the relevant Ministries in charge of specialized management for the fields of operation of the sector which have not been specified by law.

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Notes when setting up a company branch

The statutory food service business is an independent business. The establishment of a branch in the same province but in a different district is still required to declare and pay taxes like an independent company. This is a very error-prone case, so businesses need to be very careful.

Law on establishment of branches of companies (enterprises)

• Enterprise Law No. 68/2014 / QH13 takes effect on July 1, 2015
• Decree No. 78/2015/ND-CP detailing the Law on Enterprises on business registration; effective from November 1, 2015;
• Circular No. 20/2015 / TT-BKHDT guiding Decree 78 on business registration; effective from January 15, 2016;
• Decree 96/2015 / ND-CP guiding the Enterprise Law 2014 takes effect from December 8, 2015
• Decision No. 27/2018 / QD-TTg: The decision to promulgate the Vietnam Economic Sector System takes effect from August 20, 2018.
• Decree No. 07/2016 / ND-CP detailing the Commercial Law on Representative Offices and Branches of Foreign Companies in Vietnam, effective March 10, 2016