Establishing a business location is often carried out during the process of organization and operation of companies (with or without foreign investment) based in Vietnam. To be able to conduct specific business activities, businesses need to establish a business location. In the article below, Viet An Law will provide legal regulations related to the conditions for establishing a business location.
Table of contents
| Criteria | Specific content |
| Procedures need to be performed | Procedures for notification of establishment of business location (Article 31 of Decree No. 01/2021/ND-CP)
|
| Receiving agency | Business Registration Office under the Department of Planning and Investment where the business location is located.
|
| How to perform | – Register directly at the Business Registration Office;
– Register via postal service; – Register via an electronic information network. |
| Resolution deadline | – Within 10 days from the date of the decision to establish a business location, the enterprise sends a notice of establishment of business location to the Business Registration Office where the business location is located.
– Within 03 working days from the date of receiving valid documents, the Business Registration Office updates information about business locations in the National Business Registration Database for businesses. |
| Fees | The business registration fee is 50,000 VND/time (Circular No. 47/2019/TT-BTC).
Fees are waived for electronic registration. |
| Results of implementing administrative procedures | The Business Registration Office updates information about business locations in the National Business Registration Database for businesses.
In case an enterprise needs it, the Business Registration Office will issue a Business Location Registration Certificate to the enterprise. |
| Tax obligations | Business locations pay a license tax of 1,000,000 VND/year. |
| Legal grounds | – Law on Enterprise 2020;
– Decree 01/2021/ND-CP on business registration; – Circular 01/2021/TT-BKHDT guiding on business registration; – Circular 47/2019/TT-BTC regulates the rates, collection, payment, management, and use of fees for providing business information and business registration fees. – Circular 01/2021/TT-BKHDT guiding on business registration. |
According to the provisions of Clause 3, Article 45 of the Law on Enterprises 2020, business location is defined as follows: Business location is the place where an enterprise conducts specific business activities.
Characteristics of business location:
To establish a business location, it is necessary to pay attention to the conditions according to the Enterprise Law 2020 and Decree No. 01/2021/ND-CP. As follows:
Operating part or all of the parent company’s industry or profession. Must not be different from the parent company’s industry or profession.
| Case | Dossier components | |
| Notification form | Notice of establishment of business location (according to the Appendix form attached to Circular No. 01/2021/TT-BKHDT) | |
| Attached documents | In case the enterprise is a credit institution | Attached is a copy of the license or written approval issued by the State Bank of Vietnam. |
| In the case of joint venture, the enterprise is a securities company or a securities investment fund management company | Attached is a copy of the license for establishment and operation or a copy of the written approval from the State Securities Commission. | |
| In case the business is a social enterprise | Attached by a commitment to implement social and environmental goals specified in Clause 1, Article 28 of Decree No. 01/2021/ND-CP. | |
Currently, Vietnam only commits to the forms of the presence of dependent units of foreign national companies in the form of representative offices and branches. When a foreign company establishes a subsidiary in Vietnam, the Vietnamese company with foreign investment will have the right to establish a business location similar to a domestic enterprise.
According to Clause 2, Article 31 of Decree 01/2021/ND-CP, enterprises can establish a business location at a different address than where the enterprise’s headquarters or branch is located.
Notice of establishment of business location signed by the legal representative of the enterprise in case the business location is directly under the enterprise or by the head of the branch in case the business location is directly under the branch.
The company has to decide to establish a business location before proceeding with the procedure for notifying the establishment of a business location. Within 10 days from the date of deciding to establish a business location, the enterprise sends a notice of establishment of a business location to the Business Registration Office where the business location is located.
If you have any questions or need legal service support on establishing a business location in Vietnam as well as establishing a business, please contact Viet An Law Firm for the best support!
Disclaimer: This article was last updated in May 2024. Laws may have changed since then. Please contact Viet An Law to confirm the information in this article is current and for any legal assistance.
