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.
Based on Decree No.07/2016/ND-CP dated on January 25, 2016 which provides detailed regulations on the establishment, operation, rights and obligations of foreign representative office and branch of foreign traders in Vietnam under the Law on Commerce. Where foreign representative office or branch specializing in fields prescribed by specialized legislative documents, the establishment of such foreign representative offices or branches shall comply with provisions promulgated in the respective specialized requirements, including the effective period of license.
REQUIREMENTS FOR GRANT OF LICENSES FOR FOREIGN REPRESENTATIVE OFFICES IN VIETNAM
Foreign traders shall be granted Licenses for Representative Offices if they satisfy the following requirements:
- The foreign trader is incorporated and registers for doing business in accordance with provisions of laws of countries or territories being parties to treaties to which Vietnam is a signatory or is recognized by the aforesaid countries or territories;
- The foreign trader has come into operation for at least 01 year from the date of establishment or registration;
- The Certificate of Business Registration or the equivalent document is valid for at least 01 more year from the date of submission of the application;
- The scope of operation of the foreign representative office is consistent with Vietnam’s Commitments to treaties to which Vietnam is a signatory;
EFFECTIVE PERIODS OF FOREIGN REPRESENTATIVE OFFICE LICENSE
- The License for Establishment of a representative office or branch shall be valid for 05 years but not exceeding the remaining effective period of the Certificate of Business Registration or the equivalent (for documents having an expiry date);
- The effective period of an extended License for Establishment of the representative office shall be equal to that of the current license.
Read more:
- 03 cases that office license shall be changed
- Cases of adjustments to licenses for establishment
- Cases of adjustments to the office license
- Cases of re-grant of licenses for establishment
- Conditions for being granted licenses to set up representative offices in Vietnam
- Grant licenses to set up representative offices in Vietnam for foreign insurance brokers
- Extending representative offices license: what you need to know
- Compliance procedures for license of foreign representative office in Vietnam
