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.
RISK MANAGEMENT ON REPRESENTATIVE OFFICE OPERATION IN VIETNAM
- Managing risks related to business licenses for foreign representative offices in Vietnam.
- Risk management related to labor relations – salaries – compulsory insurances while recruiting for foreign representative offices in Vietnam.
- Risk management related to personal income tax and inspection procedures from the tax department after every 3 to 5 years operating foreign representative offices in Vietnam.
- Any query about local laws and regulations, directly consultation with the top experts on the office operation or dissolution of foreign representative offices in Vietnam.
With the exclusive service of “Full compliance procedures for representative office in Vietnam” VIVA has been successful managing for our thousands of clients in fully complying with local laws and regulations.
VIVA helps the Parent Company as well as the Chief of Representative Office in Vietnam be free from any compliance reports or requirements, just focus on their competitive business.
Most of foreign representative offices in Vietnam have been facing the same risks due to typical violations with local laws and regulations, especially:
- Fail to be updating and extending the licenses, fail to submit annual operating reports in time.
- Fail to be registering the internal labor regulations.
- Violations in personal income tax and compulsory insurances declaration and payment.
- Violation in work permit, temporary residence card, certificate of tax obligation completion for expats.
- Violation in business records management, especially in lawful invoices for daily expenditures.
- Receive payment from third parties or pay to others with transactions that not in lines with the scopes of representative office.
- Failure to respond and settle queries and requirements from the local competent state agencies.
- Failure to manage risks and disputes in labor relations.
- Failure to report and collaborate to the head office.
Risk management of foreign representative offices operating in Vietnam is professionals job that requires in an integrated-depth expertises knowledge and experience related to the Commercial Law, Labor, Tax accounting, and other administration regulations…
Properly managing when operating foreign representative offices in Vietnam not only helps your team focus well on the competitive business activities from the parent company but also avoid legal risks, cost-saving, competitive advantage.
Being an in-depth pioneer and unbreakable competitiveness in services for foreign representative offices in Vietnam, not only providing the service of “Managing foreign representative offices in Vietnam according to local regulations. ”, VIVA BCS also offers clients free consultation on daily operation transactions – dissolution procedures – transforming an office into a subsidiary, free-of-charge on work permits or temporary resident cards for the chief of representative offices…
Read more:
- Tips on representative office (RO) license extension
- How to dissolve foreign representative office in Vietnam?
- Case of re-grant of licenses for establishment of branches or representative office
- Chief of representative office or head of branch in Vietnam – role and responsibility
- Manage tax declaration and settlement for a foreign representative office in Vietnam
- Representative office vs subsidiary vs branch? How to transform business models in Vietnam
