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INVESTMENT IN VIETNAM
HOW TO SETTING UP A REPRESENTATIVE OFFICE

INVESTMENT IN VIETNAM
HOW TO SETTING UP A REPRESENTATIVE OFFICE

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.

4 key steps to setting up representative office in Vietnam

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.

The representative office (RO) of foreign companies is not allowed to perform profit-making activities, and their activities are limited to market research and other non-for-profit activities. In case you do not have sufficient information to make a decision to invest in Vietnam yet, it would be suitable foothold in Vietnam. Generally speaking, initial and operation cost of representative office is much lower than the cost of having a subsidiary. On the contrary, setting up a subsidiary in Vietnam in the form of either Joint-Stock Company or Limited Liability Company is a better form of investment for an investor who intends to manufacture products in Vietnam or to conduct sales activities. As long as you follow the regulations in Vietnam, establishing a company in Vietnam gives you more flexibility in business activities.

How to set up a representative offices in Vietnam? Here are the 04 key steps with highlight info that will be useful for you before entry the local market:

04 KEY STEPS TO SET UP A REPRESENTATIVE OFFICE IN VIETNAM

Step 01: Know about the local regulations

  • Vietnam-based representative office of a foreign trader means a dependent unit of the foreign trader, which is established under the provisions of Vietnamese law to conduct market survey and a number of commercial promotion activities permitted by Vietnamese law.
  • A RO shall be complied with labor, social insurance regulations by register for labor use and pay monthly insurance. The compulsory payable amount of social insurance may reach up to 34,5% of salary budget.
  • Expats working for more than 3 months shall be granted working permits.
  • A RO shall be complied with personal income tax regulations by register tax code numbers for every staff and declare for monthly personal income tax, prepare and submit annual settlement reports. The personal income tax rate for non-resident is account for 20% of the income earnt inside Vietnam, for resident is from 5 to 35% of global incomes.
  • A representative office shall be complied with other regulations such as Anti money laundering law, other tax law, commercial law for any activity in Vietnam. In particular, representative should collect and manage for all the business records in related for any query or question from competent authorities. After every 3 to 5 years of operations, the tax department will perform inspection procedures to verify the true, fair and lawful of each transaction…
  • A representative office shall prepare and submit annual report for the Licensing Department.
  • The operation term of a RO is 5 years at maximum and can be extended.

Step 02: Prepare for the required papers

  • Lawful rental contract. Not any place / address is allowed for granting a representative office license.
  • Papers form parent company: Incorporation certificate, certificate of completion of tax, the latest audited financial statement. These papers should be legalized and translate in to Vietnamese.
  • Papers of the chief of RO: Passport, appointment letter, Curriculum Vitae.

Step 03: Granting the representative office license

  • Complete all the papers and dossiers before submitting the application.
  • Follow up with the process and query or requirement from the officers.
  • Obtaining the license within 20 days or earlier.
  • Carve for the legal stamp.
  • Register electronic signature for tax and labor declaration.

Step 04: Complete the initial compliance procedures before operating the office

  • Notification of operation of representative office.
  • Publish on three consecutive issues of a printed or online newspaper licensed in Vietnam.
  • The RO must officially commence its operation and notify in writing the provincial/municipal Trade Service of the commencement of its operation at the registered head office.
  • Employee profile and labor contracts.
  • Tax code – Personal income tax for local staffs and expats.
  • Registering tax code for representative office.
  • Registering personal tax code for employee.
  • Declaration for office’s bank account.
  • Labor declaration.
  • Declaration of using employees.

For more than 10 years of business consulting and experienced for 1000 of cases of foreign Representative offices in Vietnam, we can support you to verify any query or concern in related in to practical view and solutions.

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.

Thanks to a unique combination of local expertise and global experiences, VIVA BUSINESS CONSULTING is the one-stop solution for the required compliance procedures in Vietnam for foreign investors and experts. We are still here since 2006s because of our thousands of satisfied clients and our employees. Our staying power is a testament to the professional resources, and so much more.

 

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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