PROCEDURES FOR ESTABLISHING REPRESENTATIVE OFFICES OF FOREIGN INVESTORS IN VIETNAM

PROCEDURES FOR ESTABLISHING REPRESENTATIVE OFFICES OF FOREIGN INVESTORS IN VIETNAM

Requirements for grant of Licenses for Establishment of representative offices (Article 7 Decree 07/2016/ND-CP):

  • The foreign trader is incorporated and registers for doing business in accordance with provisions of laws of countries or territories being parties to treaties to which Vietnam is a signatory or is recognized by the aforesaid countries or territories;
  • The foreign investor has come into operation for at least 01 year from the date of establishment or registration;
  • The Certificate of Business Registration or the equivalent document is valid for at least 01 more year from the date of submission of the application;
  • The scope of operation of the representative office is consistent with that in Vietnam’s Commitments to treaties to which Vietnam is a signatory;

*** Where the scope of operation of the representative office is inconsistent with Vietnam’s Commitments or the foreign trader is not located in the country or territory being party to treaties to which Vietnam is a signatory, the representative office can be established only if relevant Ministers, Heads of ministerial agencies (hereinafter referred to as “relevant Ministers”) have given approval for establishment of the representative office.

Procedures for establishing Representative Offices of foreign investors in Vietnam

Step 1: Submit the application to establish a representative office of foreign investors at licensing authority.

Documents needed:

  • 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 trader.
  • Copies of the Certificate of Business Registration or equivalent documents of the foreign trader;
  • A letter of appointment of the head of the representative office;
  • Copies of audited financial statements or certificates of the fulfillment of tax liabilities or financial obligations of the last fiscal year or equivalent documents as proof of existence and operation of the foreign trader issued or certified by competent authorities where such foreign trader is established;
  • 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 the 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 provisions of Article 28 hereof and related laws.

Step 2: Registration of seal sample at the competent authority

Documents needed: Establishment Decision or Operating License of the competent authority

Step 3: Registration tax code (for PIT declaration of foreign Head of Representative Office and foreign staffs) at tax department.

Documents needed:

  • Tax registration form (Form 01-DK-TCT based on Circular 95/2016/TT-BTC).
  • Licenses for Establishment of representative offices (notarized copy).
  • Introduction letter.

*** Licenses for Establishment of representative offices

  • Open bank accounts.
  • Report the activities to the Department of Industry and Trade (according to the State form) before January 30 every year.
  • Get work permit and temporary residence card for the foreign head of representative office and foreign employees.

Note: The content of the advice and legal provisions referenced in this post are effect at the time of consulting and may no longer be effective at the time readers accesses this article. Should you need any detail information and supports, please reach Law Plus at email address info@lawplus.vn or phone number +84 2862 779399.

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Related:

  1. Procedures for termination of a foreign representative office in Vietnam
  2. Doing business in Vietnam
  3. Investing into Vietnam
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