DO REPRESENTATIVE OFFICES HAVE TO OPEN BANK ACCOUNTS?

DO REPRESENTATIVE OFFICES HAVE TO OPEN BANK ACCOUNTS?

Nowadays, many representative offices in Vietnam don’t open a bank accounts, or don’t use the account properly. That leads to many administrative sanctions and other problems.

ACCORDING TO

  1. According to Commercial Law 2005, Paragraph 4, Article 17 about Representative offices rights, open bank accounts accounts in foreign currencies or foreign currency-based Vietnam dong at banks licensed to operate in Vietnam, and to be allowed to use those accounts solely for their operations.
  2. According to Circular No. 32/2013/TT-NHNN dated December 26th 2013 of the State Bank of Vietnam on guiding the implementation of regulations on restricting the use of foreign exchange within the territory of Vietnam, Article 4 about Cases allowed to use foreign exchange in the territory of Vietnam, using foreign currency for the payroll between Representative offices and Vietnamese individuals, Taxation, office rental,… is prohibited.
  3. According to Decree 70/2014/ND-CP, Paragraph 1, Article 6, date July 17th, 2014 about ” Money transfer from foreign countries to Vietnam”, “Foreign currency receipts of residents as organizations earned from such transfer process must be deposited into foreign currency accounts opened at authorized credit institutions or sold to these credit institutions.”

SO THAT

  1. According to the current forex management regulation, transferring money from overseas to individuals/ corporation’s accounts through Vietnam representative office’s bank accounts is not appropriate.
  2. The representative office has to open an account, which is specialized in transferring money for activities in Vietnam. The action of directly transferring money through chief of representative office or other individual’s accounts are considered illegal.
  3. Moreover, when using the account to receive money from the holding company, the representative office has to comply with Vietnam accounting and taxation rules. Especially, the related fees have to be suitable to the office’s function, have the appropriate bills and should be reported properly. 

 

Là nhà tư vấn doanh nghiệp về các thủ tục tuân thủ trong kinh doanh tại Việt Nam từ trước năm 2006, Viva cung cấp dịch vụ độc quyền theo cách tích hợp, hài hoà đồng thời cả 05 nền tảng chuyên sâu gồm Luật kinh doanh -  Kế toán tài chính - Quản lý thuế - Quản trị quan hệ lao  động - Thủ tục hành chính trong kinh doanh cùng với  sự kế thừa kinh nghiệm tổng cộng lên đến hằng trăm năm cho mỗi công việc.

Kiến thức chuyên môn sâu rộng và năng lực quản trị kết nối các nguồn lực địa phương giúp chúng tôi luôn sẵn sàng cung cấp các giải pháp chuyên môn đặc biệt, vượt lên các giới hạn thông thường và mong đợi của khách hàng.

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Last Updated on May 5, 2021

Summary
Article Name
Representative office in Vietnam: Open Bank Accounts
Description
According to Commercial Law 2005, opening accounts in foreign currencies or foreign currency-based Vietnam dong at banks licensed to operate
Author
Publisher Name
VIVA BUSINESS CONSULTING
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