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.

Overview of establishing a business location in Vietnam

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

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.