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.

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 19^th, 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:

Establishment service of business locations of Viet An Law

• Consulting on legal procedures and drafting the dossier to establish business locations according to legal regulations;
• Representing clients in working with competent state agencies related to establishing business locations;
• Assessing and resolving legal risks related to business locations, representative office for Vietnamese business and foreign investors;
• Consulting on procedures after establishing business locations;
• Drafting labor contracts for employees, and labor regulations;
• IP Representative for trademark registration, patent registration,…;
• Registering service for temporary residence card, work permit in Vietnam for foreign workers;
• Regularly consulting for enterprises;

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!