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Establishing a business location in Vietnam

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.

Establishing a business location in Vietnam

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    Overview of establishing a business location in Vietnam

    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.

    What is a business location?

    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:

    • Dependent units of the enterprise;
    • No legal status; no tax code; no seal;
    • The business location code is a 5-digit code. This code is not the tax code of the business location;
    • Tax reporting regime reported by the parent company or branch; Do not use invoices;
    • The business location may have the same or different address than where the business’s headquarters or branch is located.

    Conditions for establishing a business location in Vietnam

    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:

    Name of business location

    • Written with letters in the Vietnamese alphabet such as F, J, Z, W, numbers, and symbols;
    • The name of the business location must include the business name followed by the phrase “Business location”;
    • The name of the business location must be written or posted at the business location’s headquarters.
    • Names in foreign languages and abbreviations can be registered.

    Head office business location

    • The business location may have the same or different address than where the business’s headquarters or branch is located.
    • Note: the head office of the business location cannot be an apartment building or a place with no business function according to Housing Law 2014.

    Business

    Operating part or all of the parent company’s industry or profession. Must not be different from the parent company’s industry or profession.

    Head of business location

    • For Vietnamese citizens: Citizen identification card or ID card or valid Vietnamese Passport.
    • For foreigners: Foreign passport or valid document replacing a valid foreign passport.
    • The head of the business location is an individual who has full capacity for civil acts and has professional qualifications and experience appropriate to the business industry and profession of the business location.

    Documents announcing the establishment of a business location

      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.

    Some questions on establishing a business location in Vietnam

    Can foreign companies establish business locations?

    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.

    Can a company establish a business location other than the company’s headquarters address?

    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.

    Who signed the notice to establish a business location?

    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.

    Does the company have to decide to establish a business location before proceeding with the procedure for notifying the establishment of a business location?

    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.

    Business location establishment service of Viet An Law Company

    • Legal advice on conditions for establishing a business location;
    • Support clients in completing documents and papers related to procedures for notification of establishing a business location;
    • Consulting on deciding to establish a business location;
    • Representing clients, conducting procedures at competent state agencies, and responding to feedback;
    • Consulting tax accounting services for business locations;
    • Support for legal services after establishing a business location;
    • Consulting on procedures for establishing branches and representative offices of the company.

    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.

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