Set up a branch of foreign trader in Vietnam

In the current process of international integration, businesses tend to develop not only within the territory of a country or a region but also want to expand more branch to many countries and stretch out their arms to the whole world. When these businesses want to open more branch to carry out business activities in different countries, they need to comply with the laws of the host country. For foreign trader conducting business activities in Vietnam, setting up a branch  must meet the conditions prescribed by law and each foreign trader may only set up a maximum of 1 branch within a province or centrally-run city. The procedure is carried out through the Department of Industry and Trade of the province or city where the enterprise wants to set up a branch.

Conditions for setting up a branch of foreign trader in Vietnam

• Foreign trader may set up and register their business in accordance with the laws of countries and territories acceding to treaties to which Vietnam is a contracting party or recognized by the laws of these countries and territories.
• Foreign trader operating for at least 05 years from the date of establishment or registration;
• Business goods and services must be on the list of goods and services Branch of foreign trader and foreign tourism company permitted to do business in Vietnam in accordance with the provisions of Vietnamese law.

Dossiers to be prepared for setting up a branch foreign trader in Vietnam

• An application form for a branch establishment license according to the form of the Ministry of Industry and Trade (signed by a competent representative of a foreign trader)
• A copy of the business registration certificate or other document of equivalent value
• Document of appointment of the head of the branch
• A copy of the audited financial statements or a written confirmation of the performance of tax or financial obligations in the most recent fiscal year or a document of equivalent value issued or certified by the competent agency or organization where the foreign trader is established, prove the existence and operation of the foreign trader in the most recent fiscal year
• A copy of the operation charter of the branch
• A copy of the passport or identity card or citizen identification card (if Vietnamese) or a copy of the passport (if a foreigner) of the head of the branch;
• Documents on the proposed location of the branch office (office lease contract, other agreements on leasing, site exploitation …)

Order of procedures for setting up a branch of foreign trader in Vietnam

• Foreign trader shall prepare complete dossiers and submit them to the Department of Industry and Trade of the province/city where they intend to set up their headquarters.
• The Department of Industry and Trade receives the application and processes it.
• After 03 working days from the date of submission of the application, the Department of Industry and Trade shall issue a notice of amendment and supplementation if the application is not valid.
• After 07 working days from the date of receipt of a complete and valid dossier, the Department of Industry and Trade shall grant a license or not grant a license and must clearly state the reason.
• In case specified in Clause 5, Article 8 of this Decree and in case the establishment of a branch is not specified in specialized legal documents, the licensing agency shall send a written request for opinions of the specialized management ministry within 03 working days from the date of receipt of a complete and valid dossier. Within 05 working days from the date of receipt of the written statement from the licensing agency, the Ministry of specialized management shall clearly state its agreement or disagreement with the license to set up a branch. Within 05 working days from the date of receipt of the written statement from the Ministry of Specialized Management, the licensing agency shall grant or not grant a branch establishment license to foreign trader. In case of refusal to grant a license, there must be a written statement clearly stating the reason.

Note:

• For business branch located in economic zones or industrial zones, dossiers will be received and processed by the Management Board of that economic zone or industrial zone.
• After being licensed, the branch needs to make an announcement of operation and officially come into operation as the information provided to the Department of Industry and Trade.
• The above provisions do not apply to branch of foreign-invested company set up in Vietnam.

Service of setting up a branch of foreign trader of Viet An Law Firm

• Pre-establishment consultancy on issues related to conditions, dossiers and legal procedures on the establishment of branch of foreign companies in Vietnam;
• Drafting dossiers of establishment of branch of foreign companies in Vietnam in accordance with the requirements of the Customer and the provisions of law;
• Applying for a license to establish a branch of a foreign company in Vietnam;
• Registering to issuance of seal and seal sample certificate for branch of foreign companies in Vietnam;
• Registering and completing procedures for issuance of tax codes for branch of foreign companies in Vietnam;
• Advising on the following procedures for establishing branch of foreign companies in Vietnam;
• Declaring personnel and labor procedures of branch of foreign companies in Vietnam to the Department of Industry and Trade and social insurance agencies;
• Advising on legal procedures, representing branch, declaring corporate income tax, declaring value-added tax reports, finalizing personal income tax for employees working at representative offices in Vietnam.

If you are interested in the procedures for establishing a branch of a foreign company in Vietnam, please contact Viet An Law Firm for the fastest and most accurate package support!