GRANT LICENSES TO SET UP REPRESENTATIVE OFFICES IN VIETNAM FOR FOREIGN INSURANCE BROKERS

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.

Foreign insurance brokerage enterprises may set up their representative offices in Vietnam. Such representative offices are not allowed to conduct insurance business in Vietnam.

ALLOWED ACTIVITIES OF REPRESENTATIVE OFFICES

Vietnam-based representative offices of a foreign insurance enterprise or foreign insurance brokerage enterprise can conduct these activities:

1. Act as a bureau of communication.
2. Market research.
3. Facilitate investment projects of the foreign insurance enterprise or foreign insurance broker enterprise.
4. Expedite and monitor the implementat
5. ion of projects in Vietnam, which are sponsored by the foreign insurance enterprise or foreign insurance broker enterprise.
6. Representative offices of a foreign insurance enterprise or foreign insurance broker enterprise in Vietnam shall not carry out business activities in Vietnam.

CONDITIONS FOR BEING GRANT LICENSES TO SET UP REPRESENTATIVE OFFICES IN VIETNAM

1. The foreign insurance enterprises and insurance brokerage enterprises have operated for five years or more;
2. The foreign insurance enterprises and insurance brokerage enterprises have cooperative ties with Vietnamese agencies, organizations.
3. The duration of operations of a representative office of a foreign insurance enterprise or foreign insurance broker enterprise in Vietnam shall not exceed 05 years and may be extendable.
4. In 30 days upon receiving the valid and adequate application, the Ministry of Finance shall issue the license for the foreign insurance enterprise or foreign insurance broker enterprise to set up the representative office in Vietnam.
5. In 12 months upon licensing, the representative office must launch its official operation.

REQUIRED PAPERS TO SET UP REPRESENTATIVE OFFICES IN VIETNAM

Group 01: From headquarters

• The establishment and operation license of the foreign insurance enterprise or foreign insurance brokers enterprise in the country where it is headquartered.
• The annual balance sheet and financial report, certified by the independent auditing organization of the situation of operation of the foreign insurance enterprise or the foreign insurance brokerage enterprise for the three latest years.
• A letter of appointment of the head of the representative office. The full names, curricula vitae of the chiefs of the representative offices in Vietnam.
• The written introduction of the foreign insurance enterprise or insurance brokerage enterprise as well as its cooperation with Vietnamese agencies and/or organizations.

All above papers should be certified or by overseas diplomatic missions or Consulates of Vietnam under laws of Vietnam. Translated documents in Vietnamese and certified true for any papers from overseas.

Group 02: From local agencies

• Copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the head of the representative office.
• Documents on the expected location of the representative office including:
  • Copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the representative office.
  • Copies of documents on the expected location of the representative office in accordance with related laws.

Group 03: Application and dossiers to the competent state authority

• An application form for License for Establishment of the representative office using the form promulgated by the Ministry of Industry and Trade and signed by a competent representative of the foreign investor.
• Proper papers and documents of group 1 and group 2 above.

Our expert knowledge and very practical experienced in local business culture as well local regulations, we can meet every of your expectation in a tailored and bespoke manner. We look forward to serve and deliver the best business services for you, as what we have been doing to our loyal clients since 2006.

Please contact our expertises should you have any further query about the conditions, required papers and procedures.

Read more:

• 03 cases that office license shall be changed
• Cases of adjustments to licenses for establishment
• Cases of adjustments to the office license
• Cases of re-grant of licenses for establishment
• The effective period of foreign representative office license in Vietnam
• Conditions for being granted licenses to set up representative offices in Vietnam
• Extending representative offices license: what you need to know
• Compliance procedures for license of foreign representative office in Vietnam
• Representative in Vietnam: Business record management (BRM)