Today, with the development of the economy, companies often tend to expand their business to foreign markets. One of their options is to set up a corporate branch to conduct business operations. The branch of a foreign company in Vietnam is a subsidiary of foreign traders, established and commercial activities in Vietnam in accordance with the provisions of law. However, legal issues are the top concern of companies when they want to set up branches in Vietnam. Understanding this, Van Law will provide you with procedures and issues related to the establishment of branches of foreign companies in Vietnam in accordance with the current law.
XEM THÊM: Establishment Of A Company In Vietnam
Conditions for establishment of a foreign company branch in Vietnam
– Foreign traders shall be established and registered for business in accordance with the laws of the countries and territories to which Vietnam is a member or are recognized by the laws of these countries and territories;
– Foreign traders who have been operating for at least 05 years, from the date of establishment or registration;
– In case the business registration paper or papers of equivalent value of the foreign trader stipulates the operating time limit, that time limit must be at least 01 year from the date of submission of the dossier;
– The operation contents of the Branch must be in line with Vietnam’s commitment to open the market in international treaties to which Vietnam is a member and in accordance with the business lines of foreign traders;
– In case it is inconsistent with the commitments of Vietnam or foreign traders who are not part of the country or territory participating in the international treaty to which Vietnam is a member, the establishment of the Branch must be approved by the Minister of Specialized Management.
Dossiers of establishment of branches
– Application for a branch establishment license under form MD5 of Circular No. 11/2016/TT-BCT
– Copies of business registration papers or papers of equivalent value of foreign traders, which must be translated into Vietnamese and certified in accordance with Vietnamese law
– Documents of foreign traders appointing/appointing the head of the branch: must be translated into Vietnamese and certified in accordance with Vietnamese law.
– Copies of audited financial statements or documents 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 or certified: must be translated into Vietnamese and certified in accordance with Vietnamese law
– Legal papers of the head of the branch: must be translated into Vietnamese and certified in accordance with the provisions of Vietnamese law
– Documents on the planned location of the branch headquarters include:
+ A copy of the minutes of the agreement on the lease of the place or a copy of the document proving that the trader has the right to exploit and use the location to locate the branch headquarters;
+ A copy of the document on the expected location of the branch headquarters
Note: For copies of business registration certificates of foreign traders, they must be certified or consular legalized by diplomatic missions or consular offices of Vietnam in accordance with Vietnamese law..
Competence to grant licenses for establishment of branches
The Ministry of Industry and Trade will issue licenses to establish branches for foreign traders to establish branches in Vietnam
Authority issue branch establishment license of foreign company
The license to establish a branch has a term of 05 years. In case the business registration paper or legal papers of the foreign company have provisions on the duration, the duration of the branch establishment license shall not exceed the remaining time limit stated in the business registration paper.
Procedure of opening branches of foreign companies
– Step 1: The foreign company submits a set of documents to the licensing agency. Can be submitted in person, by post or online
– Step 2: The department receives and returns the results of receiving dossiers and granting receipts
– Step 3: The duration of the license
- Within 3 working days, from the date of receipt of sufficient dossiers if the dossier is incomplete, valid licensing agency will require additional amendments
- Within 7 working days from the date of receipt of the full dossier, the licensing authority will decide whether to grant or not to issue a license.
- In case of having to seek comments, the licensing agency shall send a written request to the specialized management ministry within 3 days from the date of receipt of the complete dossier. Within 05 days the ministry must give an opinion. Within 05 days from the date of receipt of the notice, the licensing agency shall issue or fail to issue a license to establish a branch for foreign traders.
The above are the provisions of Vietnamese law regarding the opening of foreign company branches in Vietnam. If you are still experiencing any difficulties, contact them for assistance as soon as possible. With dedication and experienced team, we are honored to bring the best service to you.
The source: https://thuvienphapluat.vn/