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OPENING BANK ACCOUNTS FOR REPRESENTATIVE OFFICES AND NON-JURIDICAL ENTITIES

OPENING BANK ACCOUNTS FOR REPRESENTATIVE OFFICES AND NON-JURIDICAL ENTITIES

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.

Open bank accounts for Non-juridical entities representative office

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.

According to Circular 02/2019 effective from March 1, 2019, the provisions on the mandatory closure of bank accounts for non-juridical entities have been removed by the State Bank. This Circular simultaneously abrogates Circular No. 32/2016 and Circular No. 02/2018.

Formerly, March 1st of 2019 was the deadline for banks to coordinate with clients who are  non-juridical entities such as foreign representative offices, households, co-operative groups, private enterprises, law offices to complete contracts for opening new bank accounts, payment accounts usage, or account termination. The purpose is to make the mandatory conversion to personal payment accounts.

OPENNING BANK ACCOUNTS FOR REPRESENTATIVE OFFICES AND NON-JURIDICAL ENTITIES

The Department of Examination of Legislation under the Ministry of Justice has issued a document stating that Circular No. 32/2016 stipulating that the subjects who can open payment accounts at banks include individuals and legal entities is illegal, restricts the rights of non-juridical entities prescribed by law, as well as restricts the rights of banks in opening payment accounts for non-juridical entities.

According to the provisions of the new Circular, organizations that can open payment accounts are no longer limited to a legal entity but also include other types of organizations that are non-juridical entities such as foreign representative offices, households, co-operative groups, private enterprises, law offices. However, the payment account holder of an organization under the new provisions in Circular 02 is an organization instead of a legal representative or representative authorized by the organization. The payment account holder is allowed to authorize others to use his/her payment account. Specifically, the foreign representative office must carry out the authorization procedure for using an account in Vietnam.

In addition, representative offices should especially note that it is only allowed to receive money from parent companies to pay for activities permitted in Vietnam in accordance with representative offices functions, as well as make accounting vouchers and books (cashbook & petty cash) to support the tax inspection for future years.

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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