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FOREIGN REPRESENTATIVE OFFICES IN VIETNAM
HOW TO MANAGE THE ANNUAL OPERATION REPORTS

FOREIGN REPRESENTATIVE OFFICES IN VIETNAM
HOW TO MANAGE THE ANNUAL OPERATION REPORTS

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.

How to manage the annual operation report

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.

Fail to prepare and submit the annual operation reports may impact to good standing, prevent office license extension, leads to serious penalties, and special inspection from licensing agency.

LEGAL GROUNDS

  1. By January 30th of the following year, every representative office shall deliver in person or mail the annual report on its operations using the form issued by the Ministry of Industry and Trade to the licensing agency.
  2. Also, upon the request of competent state regulatory authorities, a representative office shall submit operation reports, documents and other explanatory information, which are kept at its office for its license renewal/revision during its operation.
  3. There will be comparison between licensing agency with others state agencies, therefore, the figures and information in the report shall be consistent with submitted reports to the Tax department and Labor department.
  4. Failure to submit the annual operation reports on time may lead to a penalty of up to 40 million VND and impact to good standing of representative office in Vietnam, prevent representative office license extension in future.
  5. Last but not least, based on the annual operation report, the competent state agencies will review and identify if there are any violation between actual activities with allowed activities of a representative office, and, if the the activities are fair with number of employees, operation expenditures…

WHAT ARE THE REQUIREMENTS ON ACCOUNTING AND TAX REPORT FOR A REPRESENTATIVE OFFICE

Base on every 3 to 5 years of office operating, the Tax Department will require your office to provide cashbooks – petty cash, bank statements, all related vouchers – lawful invoices as well as employees profile, payrolls for tax inspection:

  1. How much the fund from headquarters over the years of operation.
  2. How much the paid expenditures.
  3. How much the paid salary and insurances.
  4. If the paid expenditures are in line with allowed activities of the office? If the paid expenditures proved by the lawful invoices? If not, there will be tax arrears and fines.
  5. If the paid salary has lawful labor records? If not, there will be tax arrears and fines.

Actually, many representative offices have been paying for disaster lessons during the inspections. To avoid seriously tax arrears and fines which may also impact to your good standing in Vietnam, you should:

  1. Review the required business records and compliance reports in advance,
  2. Verify for any of exists and risks,
  3. Complete the required records and reports to manage the final payable amount in the optimal – reasonable – lawful manner.

WHAT ARE THE REQUIRED PROCEDURES THAT FOREIGN EMPLOYEES IN VIETNAM SHALL BE COMPLIED WITH?

  1. Visa for experts and businessmen
  2. Work permit
  3. Temporary residence card
  4. Personal income tax
  5. Compulsory insurances
  6. Labor contracts, Employment records and relations
  7. Rights and obligation of Chief of representative offices and other procedures at the local competent state agencies

WHAT ARE THE REQUIRED PROCEDURES ON LABOR RELATIONS?

  1. Relations between employees with company in signing and implementation of labor contracts, payrolls…
  2. Relations between company with Compulsory insurances and labor agencies in reporting and payments, Social/health/unemployment insurance management.
  3. Relations between company with Tax Department in reporting, payments and annually settlement, quarterly declaration, annual final tax settlement, tax refund, tax completion certificates.

We hope will support you to completely remove any exists and risky things from 2020 and before, create good bases for you to prevent the same things may happen in years ahead.

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.

Thanks to a unique combination of local expertise and global experiences, VIVA BUSINESS CONSULTING is the one-stop solution for the required compliance procedures in Vietnam for foreign investors and experts. We are still here since 2006s because of our thousands of satisfied clients and our employees. Our staying power is a testament to the professional resources, and so much more.

 

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.”

 

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