How Foreign Entity Could Set up a Branch Office in
Vietnam
A foreign business entity or a foreign
trader is allowed to set up a branch office in Vietnam to
conduct business activities.
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How
to Set up branch office in Vietnam?
Having the right to conduct business
activities and make profit are how a branch differs from a representative
office in Vietnam. A branch depends on the foreign business entity
that set-up the branch while a foreign owned company set-up in Vietnam exists
by itself. The Vietnam Department of Industry and Trade will be approving the
establishment of a branch office in Vietnam while Vietnam Ministry of Planning
and Investment will be the State agency that coordinate the setting up a company in Vietnam.
In particular, the branch of a foreign
business entity in Vietnam (referred to as the “Branch”) means a subsidiary
unit of the foreign business entity, established in accordance with the law of
Vietnam in order to enter into contracts in Vietnam and conduct activities
being the purchase and sale of goods and other commercial activities consistent
with its licence for establishment in accordance with the law of Vietnam and
any international treaty to which the Socialist Republic of Vietnam is a
member.
The Branch will need to apply and obtain
the establishment license; and have a seal bearing the name of the branch.
1. Rights of the Branch
-To rent offices and to lease or purchase
the equipment and facilities necessary for the operation of the branch.
-To recruit Vietnamese and foreign
employees to work for the branch in accordance with the law of Vietnam.
-To enter into contracts in Vietnam in
accordance with the activities stated in the license for establishment of such
branch and in accordance with the Vietnam Law.
-To open Vietnamese dong and foreign
currency accounts at banks which are licensed to operate in Vietnam.
-To remit profits abroad in accordance
with the law of Vietnam.
-To have a seal bearing the name of the
branch in accordance with the law of Vietnam.
-To conduct activities being the purchase
and sale of goods and other commercial activities consistent with its license
for establishment in accordance with the law of Vietnam and any international
treaty to which the Socialist Republic of Vietnam is a member.
2. Requested Conditions
for Establishment the Branch Office in Vietnam
A foreign company which has effectiveness
business activities will be allowed to open the branch office in Vietnam if
this company has real demand to open the market in Vietnam and meet some
conditions as below:
-Being a trader recognized by the law of the country
where it has been lawfully established or made its business registration;
-Having been operating for at least five years after
its lawful establishment or business registration certificate in Vietnam.
3. Issuance the
Certificate of Branch:
The issuance of the Certificate of Branch
will be implemented by the Department of Industry and Trade Department after
the foreign company meets all of conditions as Vietnam legal requirements.
The issuing period will be within 20
working-days after the date of submitting the full valid documents as
requested.
With highly professional
staff and great experience in investment in Vietnam, ANT Lawyers – English
speaking law firm in Vietnam would like to support you
to set up the branch office in Vietnam
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