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.
Any foreign representative office in Vietnam shall be complied with the regulations on annual operation report as follows:
LEGAL GROUND ON THE ANNUAL OPERATION REPORTS
- By January 30th of the following year, every foreign 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.
- 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.
WHAT ARE THE MAIN CONTENTS OF THE ANNUAL OPERATION REPORT?
Labor use and employment relations:
- Reports on local employees.
- Reports on foreign employees.
- Total incomes.
- Compulsory insurances
- Personal incomes tax.
- Newly join and termination of labor relations.
Operations of the representative office:
- Commercial activities
- Manage and promote local business contracts,
- Market research
- Develop products,
- Seeking opportunities for the purchase or sale of goods and provision of services…
- Other activities
WHAT ARE THE RISKS THAT MAY HAPPEN AND SHALL BE AVOID IN ADVANCE?
- Failure to submit the annual operation reports on time may lead to a penalty amount of up to 40 million VND and impact to the good standing of the representative office in Vietnam.
- The contents in the report may conflict with the office’s functions, especially may show violations on labor declaration, foreign employees, local bank accounts and foreign currency, declaration and settlement of personal income tax …
- According to the good standing, there will be special inspection on many other required compliance procedures from local competent state agencies such as: Tax department, Labor Department, Licensing Department…
- And also according to the good standing, the representative office license could not be extended at the expired date.
HOW VIVA SUPPORT YOU IN MANAGING THE REPORTS
- Review the general activities of the office regarding to its allowed function.
- Review business records and required compliance reports on labor use and employment relations.
- Review business records and required compliance reports on personal income tax.
- Review business records and required compliance reports for the chief of representative office and expats.
- Identify the risks with correction solutions.
- Prepare a proper and optimal reports, prevent any violation in advance, keep your good standing, enhance more incentives for licensing renewal and other required compliances during office operation.
- Representative on behalf to explain and settle for any query or requirement from the related competent state agencies.
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.
- Annual operation reports for foreign representative offices
- How to manage the annual operation reports
- Manage the annual operation reports
- Representative office in Vietnam – Business records management
- Representative office in Vietnam – Manage tax declaration and settlement
- Representative office in Vietnam – How to manage the annual operation reports
- Representative office in Vietnam – Risk management on operation
- Representative office in Vietnam – Cashbook and lawful invoices for tax inspection
- Representative office in Vietnam – Annual budget and running cost
- Representative office in Vietnam – Business compliance advisory services