Vietnam-based representative office of a foreign investor means a dependent unit, a lawful office in Vietnam, allowed to recruit staff to manage and promote sale contracts with local business partners, research and develop products, seeking opportunities for the purchase or sale of goods and provision of services. A foreign representative office is a simple form of investment in Vietnam to enhance business from overseas, with multiple advantages while fewer risks regarding the required business compliance procedures such as investment capital, tax, accounting, and auditing. And it is easy to be extended or terminated or dissolved. The expatriate employees who work for representative office can obtain work permit and two years multiple visa (temporary residence card) for themselves and their family in Vietnam.
Chief of representative office – head branch in Vietnam shall follow compliance procedures of an expatriate in Vietnam and also have more rights and obligations according to local regulations.
ROLE AND RESPONSIBILITY OF THE HEADS
- The chief of representative office or head of branch shall be responsible for his/her action and the operation of the representative office or branch to his/her head office within the power of attorney.
- The chief of representative office or head of branch shall be responsible for his/her activities in case of carrying out activities out of the scope of authorization.
- In the absence of the chief of the representative office or head of branch from Vietnam, he/she shall grant the power of attorney to another person by written notice. The power of attorney shall be made with the prior consent of the head office. However, the chief of the representative office or branch shall be responsible for exercising rights and obligations specified in the power of attorney.
- Upon the expiry of the power of attorney stipulated in clause 3 hereof, if the chief of the representative office or head of branch has yet to return and no additional power of attorney is made, the current authorized person shall be eligible for exercising rights and obligations as the chief of the representative office or branch, within the scope of authorization, until the heads return or the parent company appoints another person as the new chief office or branch.
- In case #001 the chief of representative offices or head of branch from Vietnam is absent from Vietnam for a period of longer than 30 days without any authorization; #002 the chief or head of branch is dead, missing, detained, sentenced to prison or has no capacity for action, the parent company shall appoint another person as the new chief office or branch.
- If the parent company authorizes the chief of the representative office or head of branch to sign, adjust or supplement contracts, the head office shall grant the power of attorney by written notice for each conclusion, adjustment, and supplementation.
THINGS THAT THE HEADS SHALL NOT BE ALLOWED TO DO
The chief of representative office shall not concurrently hold the following titles:
- The head of a branch of the same parent company.
- The head of a branch of another parent company.
- The legal representative of the same Parent company or others.
- The legal representative of a business organization incorporated in accordance with the Laws of Vietnam.
The head of branch shall not concurrently hold the following titles:
- The chief of a representative office of another parent company.
- The chief of a representative office of the same parent company.
- The legal representative of a business organization incorporated under the Laws of Vietnam.
CHIEF OF REPRESENTATIVE OFFICE OR BRANCH IN VIETNAM MUST COMPLY WITH THE LOCAL LAWS AND REGULATIONS ON FOREIGN EMPLOYEES
The foreign employees in Vietnam may enjoy a lot of promotions, incentives regarding tax, visa and administrative procedures. However, the foreign employees who work at representative office or branch in Vietnam shall be also complied with the local laws and regulations to avoid and prevent the risks in advance.
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.
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