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.
Together with United Overseas Bank, VIVA Business Consulting has been advising and supporting many representative offices in Vietnam in:
- Opening and managing local bank accounts.
- Advising and managing cash flows, including allowed inflows and allowed outflows.
- The required business records, reports and tax management.
- Payrolls and salary payments for local, foreign employees.
- Required compliances procedures for the chief and foreign experts.
The important regulations on local bank accounts for a representative office that you shall keep in mind:
- According to the current forex management regulation, transferring money from overseas to individuals/ corporation’s accounts through Vietnam representative office’s bank accounts is not appropriate.
- The representative office has to open an account, which is specialized in transferring money for activities in Vietnam. The action of directly transferring money through the Chief of representative office or other individual’s accounts is considered illegal.
- Moreover, when using the account to receive money from the holding company, the representative office has to comply with Vietnam’s accounting and taxation rules. Especially, the related fees have to be suitable to the office’s function, have the appropriate bills and should be reported properly.
Read more:
- Bank accounts for foreign representative office in Vietnam
- Why foreign representative offices must open bank accounts in Vietnam?
- Opening bank accounts for representative offices and non-juridical entities
- Representative office in Vietnam: Annual budget and running cost
- Representative office in Vietnam: Manage 08 compliance procedures
- Compliance procedures for license of foreign representative office in Vietnam
