Standard business location establishment form in Vietnam
A business location is a place where the enterprise conducts specific business activities (Clause 3, Article 44 of the Law on Enterprises 2020). This is the place where the enterprise has previously registered with the parent company to carry out business activities. When expanding the scale of operations without incurring additional costs, the enterprise needs to register a business location to start expanding its business activities. Through the article below, Viet An Law will introduce about standard business location establishment form in Vietnam.
Table of contents
Hide
Standard business location establishment form in Vietnam
According to Article 31 of Decree 01/2021/ND-CP on enterprise registration, the standard business location establishment dossier in 2024 is prescribed as regualted form. Please contact Viet An Law to receive the form and advice further.
Notice of establishment of business location
Notice of establishment of business location signed by the legal representative of the enterprise in case the business location is under the enterprise or signed by the head of the branch in case the business location is under the branch.
Notice of establishment of business location in case the enterprise is a credit institution
Notice of establishment of business location signed by the legal representative of the enterprise in case the business location is under the enterprise or signed by the head of the branch in case the business location is under the branch.
In case the enterprise is a credit institution, attach a copy of the license or approval document issued by the State Bank of Vietnam.
Notice of establishment of business location in case the enterprise is a securities company or securities investment fund management company
Notice of establishment of business location signed by the legal representative of the enterprise in case the business location is under the enterprise or signed by the head of the branch in case the business location is under the branch.
In case the enterprise is a securities company or a securities investment fund management company, attach a copy of the establishment and operation license or a copy of the approval document of the State Securities Commission.
Notice of establishment of business location in case the enterprise is a social enterprise
Notice of establishment of business location signed by the legal representative of the enterprise in case the business location is under the enterprise or signed by the head of the branch in case the business location is under the branch.
In case the enterprise is a social enterprise, the dossier must include a Commitment to implement social and environmental goals as prescribed in Clause 1, Article 28 of Decree 01/2021/ND-CP.
Business location establishment notification form
Under Appendix II-7 of Circular 01/2021/TT-BKHĐT, the standard form of notification of the establishment of a business location in 2024 is prescribed as regualated form. Please contact Viet An Law to receive form and advice further.
The main content of the business location establishment notification form
Company’s name according to the Enterprise Registration Certificate
Enterprise’s tax code
Company information: address, phone number, fax, email, website
Company’s business lines
The legal representative’s information: full name, gender, address,…
Contents of establishing a business location
If the business location belongs to the company’s branch, the branch’s information must be declared.
Notes when establishing a business location
In case of authorizing another organization or individual to carry out the procedure
In case of authorizing an individual to carry out enterprise registration procedures, the enterprise registration dossier must include an authorization written for the individual to carry out procedures related to enterprise registration and a copy of the legal documents of the authorized individual. This authorization document does not need to be notarized or certified.
In case of authorizing an organization to carry out enterprise registration procedures, the enterprise registration dossier must include a copy of the service provision contract with the organization providing services to carry out procedures related to enterprise registration, a letter of introduction from that organization to the individual directly carrying out procedures related to enterprise registration, and a copy of the legal documents of the individual being introduced.
In case of authorizing a public postal service provider to carry out enterprise registration procedures, when carrying out enterprise registration procedures, the postal employee must submit a copy of the application form issued by the public postal service provider with the signature of the postal employee and the person authorized to sign the enterprise registration request.
In case of authorizing a postal service provider other than a public postal service provider to carry out enterprise registration procedures, the authorization shall be carried out as in the case of authorizing an organization.
Main procedures when establishing a business location
According to Article 45 of the Law on Enterprises 2020 and Article 31 of Decree 01/2021/ND-CP, the procedures for notifying the establishment of a business location are prescribed as follows:
Step 1: Prepare the dossier
Step 2: Step the business location establishment dossier
Step 3: The competent agency receives and resolves the dossier
Step 4: Grant a Business location registration certificate
License fee obligations when establishing a business location
Each business location of an enterprise, although not having the obligation to declare taxes or open separate accounting books, must fulfill the obligation to pay license fees based on Point c Clause 1 Article 4 of Decree 139/2016/ND-CP of 1,000,000 VND/year (different from the company’s representative office which does not must fulfill the obligation to pay the license fees).
According to Article 11 of Decree 126/2020/ND-CP dated October 19th, 2020 of the Government detailing several articles of the Law on Tax Administration:
For business locations with the same address as the parent enterprise or branch, it is only necessary to declare and pay license fees according to the address of the enterprise or branch.
For business locations that do not generate business activities: Commit that not generate business activities;
For business locations generating business activities: business locations use the same invoice form of the parent unit for each business location, send the Invoice Issuance Notice of each business location; declare and pay the value-added tax to the tax authority where the location is located.
Should you set up a business location or a business branch?
Establishing a business location or branch will depend on the needs of the company. However, business owners also need to distinguish between these two types of dependent units to make the most accurate decision and serve their business purposes. The distinction is shown under the following criteria:
Criteria
Branch
Business Location
Define
As a subsidiary unit of an enterprise, it is responsible for performing all or part of the enterprise’s functions, including the authorized representative function.
As the place where an enterprise conducts specific business activities.
Seal
Allowed to register and use private seals.
It is not allowed to register and use private seals.
Accounting and tax regime
Branches can choose to account dependently or independently from the enterprise.
Branches can register and use the same or different invoice templates of the enterprise.
The accounting regime of a business location depends entirely on the head office of the enterprise or its parent branch.
The business location uses the same invoice form as the enterprise’s headquarters or its parent branch.
Organization, activitiy
Perform all or part of the functions of the enterprise, including the function of authorized representation.
Only conduct business activities directed by the enterprise, without the function of authorized representation.
Above is the consultation of Viet An Law on Standard business location establishment form in Vietnam. If there are any other legal problems related to business location establishment, please contact Viet An Law for more specific and detailed consultation. Sincerely thank you!
The cooperation between Vietnam and Switzerland has a long history of development and has achieved many significant achievements. Over the years, Switzerland has constantly supported Vietnam on the path of…
The cooperation between Vietnam and Poland has witnessed significant progress in recent years, constantly strengthening and expanding in many fields. With mutual advantages, the two countries have been creating potential…
Although Turkey has made significant progress in building a conducive business environment, the protection of trade secrets remains a major challenge. Unfair competition, especially in traditional and emerging industries, has…
Although the potential for investment cooperation between Vietnam and the Philippines is huge, at present, the scale of Philippine investment in Vietnam is still modest. This is largely due to…
Germany has long been an important development partner of Vietnam, contributing positively to the country’s industrialization and modernization. The cooperation between the two countries is not only based on historical…
