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COMPLIANCE PROCEDURES FOR LICENSE OF FOREIGN REPRESENTATIVE OFFICE IN VIETNAM

COMPLIANCE PROCEDURES FOR LICENSE OF FOREIGN REPRESENTATIVE OFFICE 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.

Compliance procedures for Representative office license

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.

Although a representative office can enhance and support business development for parent company, easy to manage and able to keep investor away from many potential risks of violating local compliance procedures: no add valued tax, no corporate income tax, no accounting books, no financial statement, no independent audit required… but, in fact, there are many representative offices have endured serious fines due to misconduct of compliance procedures. VIVA would like to share some compliance procedures for foreign representative office license in Vietnam.

EXTENSION OF THE FOREIGN REPRESENTATIVE OFFICE LICENSE

Other than cases be revoked such as:

  • Fail to come into operation for 1 year and fail to enter into transactions with licensing agencies.
  • Fail to submit the operation reports on the operation of the foreign representative office for 02 consecutive years.
  • Fail to submit annual reports to the licensing agency within 6 months from the deadline of submission or at the written request of the licensing agency.

Every office shall be eligible for the grant of extension of the license of the establishment of the representative office.

There are many reasons may trouble you to extend the license properly, and you should prepare at least 03 months in advance. It would take time to prepare for the papers and dossiers for the extension. Moreover, the officers will audit your previous operations, tax declaration and settlement and other condition before making decision on if your office license would be extended or not, a new effective period of representative office license will be 1 year or 5 years…

Read more: Extension of License for Establishment of Representative Office in Vietnam – Cases and Applications

AMEND INFORMATION ON A REPRESENTATIVE OFFICE LICENSE

When foreign traders or foreign representative offices operating in Vietnam change information, it is necessary to comply with some regulations of state agencies as follows:

Cases need to be notified:

Foreign traders must carry out procedures for adjusting license of representative office in the following cases:

  • Changing the name of the foreign trader.
  • Changing the address of the foreign business entity.
  • Changing the chief of the representative office.
  • Changing the name of the representative office.
  • Changing of operation contents of the representative office.
  • Changing of address of the representative office.

Dossier of license adjustment:

In case of change, the foreign trader shall prepare one (01) dossier set, including:

1/ Documents evidencing the change, specifically:

  • A copy of the legal document issued by a competent authority, proof of change of name or address of the foreign business establishment (if the name and address of the foreign business establishment entity are changed. To be certified or consular legalized by the Vietnamese diplomatic mission or consular office in the foreign countries according to the provisions of Vietnamese law).
  • Documents of the foreign trader appointing new chief of the representative office. Copy of passport (if being foreigners)/ ID card (if being Vietnamese) of the new chief of the representative office. Documents proving that the former chief of the representative office has fulfilled the personal income tax obligation by the time of change (if changing of the chief representative, the documents must be translated into Vietnamese and authenticated according to the provisions the law of Vietnam).
  • A copy of the lease agreement or a copy of the documents proving that the trader has the right to exploit and use the location for the head office of the representative office. a copy of the document on the location of the proposed representative office (if the address of an office is changed).

2/ The original license of the representative office:

* Handling violations:

Within 60 working days after the change of foreign traders, the procedures for modifying the representative office license must be carried out.

Depending on the seriousness of the breach, the offender shall be fined from 20,000,000 VND to 40,000,000 VND for acts of  “failing to carry out the procedures for amending, supplementing or re-granting of representative office establishment permits according”, in accordance with Decree 185/2013 / ND-CP dated 15 November 2013.

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.

 

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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