Foreign capital companies wishing to expand production and business activities may carry out procedures for establishing company branches in the locality where the enterprise is headquartered or other localities in accordance with the Law on Enterprises. Viet An Law would like to give some legal opinions on the dossier of establishment of a branch of a foreign capital company as follows:
According to the provisions of Article 44 of the Law on Enterprises, “A branch is a dependent unit of an enterprise, tasked with performing all or part of the functions of the enterprise, including the function of authorized representative. The branch’s line of business must be consistent with the business line of the enterprise.”
Company has the right to set up branch at hometown and abroad. Company can set up one or more branches in a locality according to the boundaries of administrative units.
In principle, a branch is only a dependent unit of the company, so the name of the branch must always be accompanied by the name of the company and ensure the following regulations:
The enterprise submits the application for branch operation registration at the Business Registration Office where the branch is located. The dossier includes the following documents:
Within 03 working days from the date of receipt of a valid dossier, the Business Registration Office shall issue a Certificate of branch operation registration.
The Enterprise Law 2020 does not have regulations limiting the number of branches. Therefore, businesses can set up multiple branches in the same locality.
In the prohibitions of the Enterprise Law 2020, there is no provision prohibiting a person from being both a legal representative and the head of a branch. Therefore, the Legal Representative can concurrently act as the Head of the Branch.
According to the provisions of the Enterprise Law, a branch is a dependent unit of an enterprise, tasked with performing all or part of the functions of the enterprise, including the function of authorized representative. The branch’s line of business must be consistent with the business line of the enterprise.
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