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Investment In Vietnam – Why Choose A Branch Office

Investment In Vietnam – Why Choose A Branch Office

VIVA BUSINESS CONSULTING là công ty tư vấn doanh nghiệp được tín nhiệm bởi hằng ngàn khách hàng danh tiếng từ năm 2006. VIVA cung cấp nền tảng quản lý toàn diện và nguồn lực thực thi theo cách kết hợp đồng thời của: Luật pháp và thủ tục hành chính trong kinh doanh – Quản lý thuế và kế toán – Quản trị quan hệ lao động – Quản trị tài chính doanh nghiệp – Quản trị và kiểm soát nội bộ. Năng lực của chúng tôi giúp khách hàng lường trước các rủi ro, tối ưu chi phí, kiến tạo lợi thế kinh doanh.

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006. We are creating added value for clients by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We keep our client’s good standing in lawful and optimal manners whenever they are working and doing business in Vietnam.

Branch office in Vietnam

Branch Office In Vietnam means a dependent unit of the foreign trader. The Headquarter shall be legally responsible for the entire operations of the branches in Vietnam. Branch is not a popular choice of foreign investors in Vietnam because of complicated entry procedures in compared with a representative office or subsidiary company. Moreover, compliance operation procedures of a branch are equal to a subsidiary company but the operation functions are less convenience.

Branch office in Vietnam
Branch office in Vietnam

Conditions for grant of Licenses for Establishment of branches

  • The foreign trader is incorporated and registers for doing business in accordance with provisions of laws of recognized countries
  • The foreign trader has come into operation for at least 05 years from the date of establishment or registration;
  • The Certificate of Business registration or equivalent document is valid for at least 01 more year from the date of submission of the application;
  • The scope of operation of the branch is conformable with Vietnam’s Commitments to market access.

Papers for Licenses for Establishment of branches

  • Copies of the Certificate of Business Registration or equivalent documents of the foreign trader;
  • A letter of appointment of the head of the branch;
  • Copies of audited financial statements or certificates of fulfillment of tax liabilities or financial obligations of the last fiscal year or equivalent documents as proof of existence and operation of the foreign trader issued or certified by competent authorities where such foreign trader is established;
  • Copies of the branch charter;
  • Copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the head of the branch;
  • Documents on the expected location of the branch including:
    – Copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the branch;
    – Copies of documents on the expected location of the branch under Article 28 hereof and provision of related laws.

Documents specified above shall be certified or legalized by overseas diplomatic missions or Consulates of Vietnam, translated into Vietnamese and certified true.

Procedures for Licenses for Establishment of branches   

  • Summit the application to the licensing agency where the representative office is expected to be located.
  • The licensing agency shall examine such application and request the applicant to complete their application by a written notification of whether the license or establishment of the branch is granted or not within 10 working days from the date of receipt of the valid application.

Structures of branch office in Vietnam

  • The organization structure and personnel of a branch shall be decided by their head office.
  • The employment of foreign workers of representative offices or branches shall comply with legislation on labor.

Rights of branch office in Vietnam

  • To rent offices, rent and purchase equipment and facilities necessary for their operations.
  • To recruit Vietnamese and expatriate employees to work for them according to Vietnamese law.
  • To enter into contracts in Vietnam in compliance with their operation contents specified in their establishment licenses.
  • To open Vietnam dong accounts and foreign-currency accounts at banks licensed to operate in Vietnam.
  • To transfer profits overseas according to the provisions of Vietnamese law.
  • To have seals bearing their own names according to the provisions of Vietnamese law.
  • To conduct activities of goods purchase and sale and other commercial activities in compliance with their establishment licenses according to the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.

Obligations of branches

  • To observe the accounting regime provided for by Vietnamese law; in cases where it is necessary to apply another commonly used accounting system, the approval by the Finance Ministry of the Socialist Republic of Vietnam is required.
  • To report on their operations according to the provisions of Vietnamese law.

 

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.

Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services,  VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…

VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.

 

VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.

The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.

YOU WILL RECEIVE

“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”

 

Read more about branch office in Vietnam:

Establishing Branch or Representative Office For a Local Company

Chief Of Representative Office Or Head Of Branch In Vietnam – Role and Responsibility

Representative Office vs Subsidiary vs Branch? How to transform business models in Vietnam

Foreign Representative Office In Vietnam | Case Of Re-Grant Of Licenses For Establishment Of Branches Or Representative Office

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