Difference Between a Branch and a Business Location in Vietnam

After a period of operation, enterprises often tend to expand their business scope or expand their business model. One of the methods that enterprises can choose is to establish a branch or business location. Many customers wonder which form to choose and the difference between the two forms above. In this article, Viet An Law compares the difference between a branch and a business location in Vietnam so that customers can refer to and choose the appropriate type.

Definitions of a branch and a business location

• A branch of an enterprise is its dependent unit, which has some or all functions of the enterprise, including an authorized representative. The business lines of a branch shall match those of the enterprise (Clause 1, Article 44 of the Law on Enterprises 2020 (amended and supplemented in 2025) (amended and supplemented in 2025), amended and supplemented in 2022).
• A business location of an enterprise is the place at which specific business operations are carried out (Clause 3, Article 44 of the Law on Enterprises 2020 (amended and supplemented in 2025), amended and supplemented in 2022).

Comparison between a branch and a business location in Vietnam

Similarities

• All are dependent units of the enterprise.
• Do not have legal status.
• Enterprises are not limited in the number of business locations and branches they can establish.
• Branches and business locations are established to increase revenue, expand the market, and increase customer access.
• Have separate business location and branch registration certificates.
• Can establish branches and business addresses in the same or different provinces or centrally run cities as the head office

The difference between a branch and a business location in Vietnam

The difference between a branch and a business location in Vietnam

Location

• Branch: Can be located in a different province/city than the place where the enterprise has its headquarters, and can be established domestically or abroad. (Clause 1, Article 45 of the Law on Enterprises 2020)
• Business location: Enterprises can establish a business location at an address other than the place where the enterprise has its head office or branch (Clause 2, Article 30, Decree 168/2025/ND-CP)

Seal, operating license

• Branch: has its own seal (Clause 2, Article 43 of the Law on Enterprises 2020); and has its own certificate of operation.
• Business location: does not have its own seal, has its own Certificate of operation

Name

• Branch: the name of the Branch must bear the name of the enterprise with the phrase “Branch” for branches, the phrase “Representative Office” for representative offices (Article 40 of the Law on Enterprises 2020)
• Business location: it is not required to include the business name when naming the business location (Article 40 of the 2020 Law on Enterprises)

Sign contracts and issue invoices

• Branch: allowed to sign economic contracts; allowed to use and issue invoices.
• Business location: not allowed to be named on economic contracts; not allowed to register or use invoices.

Tax obligations

Branch:

• Have a separate 13-digit tax code on the Certificate of Branch Operation Registration (Clause 5, Article 8, Decree 168/2025/ND-CP);
• Independent accounting (must have separate invoices) or dependent accounting.

Business location:

• No separate tax code (Clause 6, Article 8, Decree 168/2025/ND-CP);
• Location in the same province as the head office: Head office declares and pays tax;
• Location in a different province than the head office: register a dependent tax code and declare at the local Tax Department;
• Dependent accounting.

Taxes and fees payable

Branch

• Business license fee;
• Value-added Tax;
• Corporate income tax;
• Personal income tax.

Business location: business license fee

Establishment procedures

• Branch: establishment dossiers are more complicated than business locations.
• Business locations: establishment dossiers are simpler

Change of business registration content

Branch

• Must carry out tax change procedures;
• Send Notice of change in registration content to the Business Registration Office where the branch is located (Article 56 of Decree 168/2025/ND-CP)

Business location

Only need to carry out the procedure of sending the Notice of change of business registration content to the Business Registration Office where the business location is located (Article 56 of Decree 168/2025/ND-CP).

Purpose of establishment

• Branch: Enterprises that want to open a business in many fields can sign contracts, issue invoices to customers; the business operates in provinces and cities other than the province/city where the company’s headquarters is located.
• Business location: Enterprises that want to open a business specializing in one field, want to choose simple procedures and operations, and the business operates in the same province/city where the company’s headquarters is located.

In case the Company wants to open a specialized business in one field, wants to choose simple procedures and operations, and the business should be located in the same province or city as the Company’s headquarters, it should choose to establish a business location.

In case the Company wants to open a business in many fields, it can sign contracts, issue invoices to customers; if the business operates in provinces and cities other than the province and city where the Company’s headquarters is located, it should choose to establish a branch.

Procedures for establishing a branch and business location of Viet An Law

Procedures for establishing a branch and business location of Viet An Law

Advantages and disadvantages of establishing a branch compared to establishing a business location

Advantages:

• Establishing branches in provinces and cities (areas that generate high revenue for businesses) will save maximum transportation costs;
• Providing good customer care services to customers
• Branches can choose to have independent or dependent accounting; the business location must depend on the company or the branch.

Disadvantages:

• The procedure for dissolving a branch is more complicated and takes longer than that of a business location.
• If the branch has independent accounting, it must declare taxes independently for the branch. If the enterprise is small, it must fulfill many obligations related to taxes and legal regulations, which will affect the time, personnel costs, as well as other business operating costs.

If you have any questions, please contact Viet An Law for detailed advice from our team of professional lawyers.