Termination of operation of Foreign Representative Offices in Vietnam

When a representative office has no need to continue operating or when the foreign company has established a company in Vietnam, it is necessary to close the representative office. Viet An Law Firm is proud to be a law firm with long experience and provides a full service on procedures for closing representative offices of foreign companies in Vietnam.

Legal Grounds:

• Commercial Law 2006;
• Decree 07/2016 / ND-CPdetailing the Commercial Law regarding representative offices and branches of foreign traders in Vietnam;
• Circular No. 11/2016 / BCT guiding Decree 07/2016 / ND-CP detailing the Commercial Law regarding representative offices and branches of foreign traders in Vietnam.

Steps to carry out procedures to terminate operation of representative offices of foreign companies in Vietnam

1. Make settlement of tax obligations with tax authorities, insurance obligations with social insurance agencies for employees (if any), financial obligations to employees (if any);
2. Return the seal of the representative office at the police station;
3. Carry out the procedures for returning the operation license of the representative office at the Department of Industry and Trade.

Documents that the representative office need to provide to Viet An Law:

1. Report on operations of the representative office has been submitted to the Department of Industry and Trade from its inception to the present (Note: Including contents such as: Number of employees at the representative office, amount payment paid for health insurance, social insurance, personal income tax (if any), operations of representative offices in Vietnam, …)
2. Operation license of the representative office;
3. Seal sample certificate of the representative office;
4. Personal income tax declaration for all employees who have worked at the office since of its establishment until now;
5. Personal income tax payment invoices for all employees who have worked at the office since its establishment up to now;
6. Finalize personal income tax for all employees who have worked at the office since its establishment up to now;
7. Bank account statements of the office;
8. Cash book of the office;
9. Salary confirmation form for all employees who have worked in the office since its establishment up to now;
10. Office lease contract, documents on operating expenses in Vietnam;
11. Notification of tax code paid on behalf of the representative office;
12. Seal of representative office (Note: Only transfer the seal of Representative office after it has been canceled)
13. Note: in case of being checked by the state agencies, by comparison and find that the data does not match between the documents and reality, with other additional expenses without declaring, the representative office will be subject to a fine in accordance with the law, the working time will be prolonged, the time to complete the fine payment does not count towards the service completion time of Viet An Law.

The work of Viet An Law is to carry out procedures for terminating the operation of representative offices of foreign companies in Vietnam

• Working at tax agency for representative offices, insurance agencies (if any);
• Counseling on problems arising when terminating operations of representative offices
• Drafting the application for shutdown of the representative office in accordance with relevant laws;
• Working with the Department of Industry and Trade on the closure of the representative office;
• Return the seal of the Representative Office;
• Notice of asking for deletion of the name of the representative office in the operation registration book at the Department of Industry and Trade.

For more information, please contact Viet An Law Firm for quick and best advice & support.