05 Dec EXTENDING REPRESENTATIVE OFFICES LICENSE – WHAT YOU NEED TO KNOW
Every representative office operating in Vietnam needs to pay close attention to the expiry date mentioned in the license of establishment. License extension is very important. Fail to extend the license on time means you are operating without license, which is risky because of serious penalties and fines from the authorities and the business will be named in the blacklist of the state agencies.
APPLICATIONS FOR THE EXTENSION OF LICENSE FOR ESTABLISHMENT OF REPRESENTATIVE OFFICE
An application for extension of License for Establishment shall include:
- An application form for extension of License for Establishment of the representative office or using the form promulgated by the Ministry of Industry and signed by a competent representative of the representative office;
- Copies of the Certificate of Business registration or equivalent documents of the representative office;
- 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 representative office issued or certified by competent authorities where such representative office is established;
- Copies of the existing License for Establishment of the or representative office:
Documents specified in point b, clause 1 of this Article shall be translated into Vietnamese and certified or legalized by overseas diplomatic missions or Consulates of Vietnam in accordance with laws of Vietnam.
Documents specified in point c, clause 1 of this Article shall be translated into Vietnamese and certified true in accordance with laws of Vietnam.
PROCEDURES FOR THE EXTENSION OF LICENSE FOR ESTABLISHMENT OF REPRESENTATIVE OFFICE
- At least 30 days prior to the expiry of the license, the applicant shall apply for the extension of License for Establishment of representative office.
- The representative office shall submit the application to the licensing agency where the representative office is expected to be located directly or by post or online (where applicable).
- Within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete). The request for supplementation to the application shall be made only once during the processing of the application.
- Within 05 working days from the date of receipt of the valid application, the licensing agency shall grant an extension of the license or establishment of the representative office to the applicant. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.
- With respect to applications for extension of the License for Establishment of representative office that has yet to be governed by specialized legislative documents, the licensing agency shall submit a written request for directions to the relevant Ministry within 03 working days from the date of receipt of the valid application. Within 05 working days from the date of receipt of the request for directions from the licensing agency, the relevant Ministry shall submit the licensing agency a written notification of whether they approve for the application for extension of the License for Establishment of representative office. Within 05 working days from the date of receipt of the notification from the relevant Ministry, the licensing agency shall send the applicant a written notice of whether the extension is granted or not. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.
TIPS ON REPRESENTATIVE OFFICE LICENSE EXTENSION
There are many reasons may prevent you from extending the license properly, and you should prepare for at least 03 months before the deadline. It would take time to get all necessary dossiers done for the license extension. Moreover, the authority will audit your previous operations, tax declaration and settlement as well as other conditions before deciding if your office license will be extended or not. The period of new license will be valid for 1 to 5 years, depending on the reasonable of submitted application and records.
TO AVOID AND PREVENT RISKS COULD HAPPEN RELATING
According to Clause 4, Article 86, Decree 185/2013:
The representative office of foreign traders may lead to a fine up to 30 million – 50 million VND for one of the following violations:
- Continue to operate after the foreign traders have terminated their operation;
- Continue to operate after competent authorities have revoked the license of establishment or the license is expired or not being extended.
Moreover, failure to extend license on time may affect the future office license renewal and other procedures, as well as require supplementary reports.
Our practical experiences can identify every legal requirement / manage for the full procedures / representative of you for any query or requirement from the officers… Your new office license will be obtained in a smooth and efficient manner with 3 key steps:
- Prepare 08 kinds of papers according to our checklist
- Just sign and stamp the prepared dossiers
- Wait and receive successful result from us within 30 days
Besides the new office license, representative offices should consider getting renewal of work permit, temporary resident card and taxation for expat staffs and their relatives. These costs can be saved when it is managed to sort out at the same time.
ABOUT VIVA BUSINESS CONSULTING
Who we are
- 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.
- The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Secretarial services help us build trust and confidence in the entrepreneur's community.
- We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigner working in Vietnam, Vietnamese SMEs, Chief Operation Officers.
What we do
- Services for Expats in Vietnam: Visa, Work Permit, Temporary residence card, Compulsory Insurances, Personal Income tax, Labor contracts, Employment Records and Relations, Other Secretarial Services.
- Services for Representative offices in Vietnam: Establishment, extension of representative office licenses. Required compliance procedures during operation. Rights and obligations of the chief of representative office. Closure of representative office risks management.
- Services for a company in Vietnam: Setting up a new company and licensing service. Business records management. Daily business transactions management. Tax management. Accounting and financial statements. Employments, payroll and compulsory insurances. Representative on behalf at competent state agencies for any business administration procedures.
Motivated by our core values of ceaseless improvement, our great insights in local business culture and regulations, as well as the exclusive services, promise to offer you one-stop and tailored-made solutions that optimize every of your business in Vietnam in the lawful manner.
We are looking to be your valued business partner and resources in Vietnam as we have been choosing since 2006.