Branches establishment dossier of foreign traders

In the current process of international integration, businesses are tending to develop not only within the territory of one country, a region but want to expand more branches to many countries and reach out their arms to the whole world. These businesses wishing to open more branches to carry out business activities in different countries need to comply with the provisions of local laws. For foreign traders conducting business activities in Vietnam, the branches establishment should be eligible by the law and each foreign trader can only establish a maximum of 1 branch within a province or central city. The procedure is carried out through the Department of Industry and Trade of the province or city where the enterprise wants to set up a branch.

Branch establishment condition:

• Foreign traders are allowed to establish and register for business by the laws of nationalities and territories participating in international treaties to which Vietnam is a member or recognized by the laws of these countries and territories.
• Foreign traders operating for at least 05 years from the date of establishment or registration;
• Business goods and services must be on the list of goods and services of foreign traders’ branches or foreign tourism enterprises permitted to do business in Vietnam by Vietnamese law.

The documents to be prepared:

• Application for license to establish a branch according to the form of the Ministry of Industry and Trade (signed by the competent authority of foreign traders)
• Copy of business registration paper or other paperwork of equivalent value
• Written appointment of the head of the branch
• A copy of an audited financial statement or a document confirming the performance of tax or financial obligations in the most recent fiscal year or papers of equivalent value issued or certified by competent agencies or organizations where foreign traders are established, proving the existence and operation of foreign traders in the last fiscal year
• Copy of branch’s operating charter
• A copy of the passport or id card or id card (if a Vietnamese) or a copy of the passport (if a foreigner) of the head of the branch;
• Documents on the location of the planned branch headquarters (headquarters lease contract, other agreement on the lease, location exploitation …)

Procedure sequence:

• Foreign traders prepare the full dossier and submit it to the Department of Industry and Trade of the province/city where the headquarters is planned.
• The Department of Industry and Trade receives the dossier and handles it.
• After 03 working days from the date of submission of the dossier, the Department of Industry and Trade shall issue a notice of amendment and supplementation if the dossier is not valid.
• After 07 working days from the date of receipt of a valid dossier, the Department of Industry and Trade shall issue a license or not issue a license and must clearly state the cause.
• In the case specified in Clause 5, Article 8 of this Decree and in case the establishment of a branch has not been specified in the specialized legal documents, the licensing agency shall send a written opinion of the Specialized Management Ministry within 03 working days from the date of receipt of a valid dossier. Within 05 working days from the date of receipt of the written request of the licensing agency, the specialized management ministry shall issue a written state of consent or disagreement to license the establishment of a branch. Within 05 working days from the date of receipt of the document of the specialized management ministry, the licensing agency shall issue or fail to issue a branch establishment license to foreign traders. In the case of non-licensing, there must be a written state of the reason.

Note:

• For corporate branches located in economic zones and industrial parks, dossiers will be received and processed by the Management Board of such economic zones and industrial parks.
• After being licensed, the branch needs to make an operational notification, officially put into operation as provided to the Department of Industry and Trade.
• The above provisions do not apply to branches of foreign-invested enterprises established in Vietnam.