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:
- Act as a bureau of communication.
- Market research.
- Facilitate investment projects of the foreign insurance enterprise or foreign insurance broker enterprise.
- Expedite and monitor the implementat
- ion of projects in Vietnam, which are sponsored by the foreign insurance enterprise or foreign insurance broker enterprise.
- 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
- The foreign insurance enterprises and insurance brokerage enterprises have operated for five years or more;
- The foreign insurance enterprises and insurance brokerage enterprises have cooperative ties with Vietnamese agencies, organizations.
- 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.
- 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.
- 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.
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Please contact our expertises should you have any further query about the conditions, required papers and procedures.
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.
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