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Foreign representative offices in Vietnam

Foreign representative offices in Vietnam

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.

Manage the cashflow of representative office in Vietnam

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.

There are many foreign representative offices in Vietnam that have been paying serious lessons for violations of unallowed transactions or lawful invoices.

The cashflow chart from VIVA business consulting may help you for an overview on cashflow of a foreign representative office, the main transactions in order to manage the required compliances properly:

  • Local bank accounts – regulations on currency and investment
  • Allowed activities of a foreign representative office
  • Employment relations
  • Compulsory insurances
  • Personal income tax
Manage the cash-flows and required records
According to the Laws on VAT invoices: The sellers should issue the lawful invoices for any service or goods sold and the buyers have responsibility to collect and keep the invoices.

Since 2012, together with the Anti-money laundering regulations and the latest updates on tax laws, the tax inspectors specially focus on representative offices for tax inspection.

After every 3 to 5 years of office operating, the Tax Department will require your office to provide cashbooks – petty cash, bank statements, and all related vouchers – lawful invoices – employees profiles, proper salary payrolls for tax inspection:

  • How much are the fund from headquarters over the years of operation?
  • How much are the paid expenditures?
  • How much are the paid salary and insurances?
  • 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.
  • If the paid salary has lawful labor records? If not, there will be tax arrears and fines.

Actually, many representative offices did not believe the rules and have dealt with the tax inspection with very disastrous lessons.

To avoid seriously tax arrears and fines which may also impact to your compliance history in Vietnam, you should:

  • Review the required business records and compliance reports in advance,
  • Verify the exists and risks,
  • Complete the records and reports to manage the final payable amount in the optimal – reasonable – lawful manner.


  • Not open a local bank account.
  • Receive payment – fund from other parties.
  • Using personal accounts for representative office activities.
  • Pay for trading – manufacturing transactions – profitable activities.
  • Pay for lending activities.
  • Pay for commissions.
  • Pay without the lawful invoices
  • Pay without accounting book / cashbook / reports.


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.


“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”

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