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5 advantages of setting up a foreign representative office in Vietnam 

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5 advantages of setting up a foreign representative office in Vietnam. Establishing a representative office is the optimal choice for many foreign-invested enterprises; before officially registering to develop a business in Vietnam. Let us learn about this topic with LSX Law firm below:

Here are 5 advantages of opening a representative office compared to setting up a business: 

Time to explore the market to set up a foreign representative office in Vietnam

For foreign enterprises entering Vietnam for the first time with the primary purpose of promoting their brands; or get acquainted; market review; The establishment of a representative office is an option to help businesses save costs and simplify legal procedures. 

Simple procedure to set up a foreign representative office in Vietnam

Compared with establishing a commercial presence in Vietnam in other forms such as business cooperation contracts; establishing a foreign-invested enterprise, or establishing a branch, establishing a representative office – the least complicated.

To establish a representative office, an enterprise needs to meet the following conditions:

Firstly, established and registered for business under the laws of a country; or territory participating in an international treaty to which Vietnam is a contracting party; or recognized by the laws of these countries and territories;

Secondly, having operated for at least 1 year; from the date of establishment or registration; the operation period must be valid for at least 1 year from applying for a license to establish a representative office. 

Quick Licensing

In general, the time to get the License to establish a Representative Office is quite fast; within only about 7 working days from submitting a complete and valid dossier at the licensing agency; The office was able to be licensed to operate. 

Cost saving to set up a foreign representative office in Vietnam

Another benefit of establishing a representative office is that it is not taxed. It is not a pure business operation but only has to declare and pay personal income tax for the office’s staff.

Establishing a foreign-invested enterprise in Vietnam needs to go through many stages with complicated procedures and papers; and the cost for this work is quite expensive (maybe up to several thousand USD). Therefore, spending a lot of money to establish a business while not understanding the market is a risky step for companies. 

A stepping stone to establishing a foreign-owned enterprise

Accordingly, representative offices of foreign enterprises may not conduct business or other profitable activities; but this is still an agency performing communication, market research, promotion; and promotion of opportunities business investment… for foreign enterprises in Vietnam. Through these activities; The image and brand of enterprises will gradually become familiar and famous in the market. As a result, business leaders can safely establish foreign-owned enterprises and officially operate commercial activities in Vietnam. 

Service of setting up a foreign representative office in Vietnam of LSX Law firm

Prestigious professional services: LSX Law firm has a team of experienced consultants in the business field. When using the service, customers can rest assured about legal procedures and the maximum benefits that you can enjoy.

On-time: With the motto “Get your lawyer right at your fingertips,”; we ensure the service always complete on time. The client’s interests are always put first by LSX Law firm.

About fee: The service cost of LSX Law firm is highly competitive; depending on the nature of the particular case. We want our guests to have the best possible service experience. Costs are guaranteed to be the most suitable and economical for customers.

Confidentiality of client information: Client’s personal information, LSX Law firm will keep 100% confidential. Please contact us immediately when in need of services.

Finally, hope this article about 5 advantages of setting up a foreign representative office in Vietnam is helpful for you!

If you have any questions; please contact Lawyer X for quick and best legal services: +84846175333; email: [email protected]

Related questions

What is a representative office?

Accordingly, Clause 2, Article 44 of the Enterprise Law 2020, a Representative Office is: “a dependent unit of an enterprise, responsible for representing the enterprise’s interests and protecting those interests.”

Does the representative office have legal status?

As a dependent unit of the company, the Representative Office has no legal status.

Conclusion: So the above is 5 advantages of setting up a foreign representative office in Vietnam . Hopefully with this article can help you in life, please always follow and read our good articles on the website:

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