A business location is one of the dependent units of an enterprise, a branch, where an enterprise conducts specific business activities. Currently, the registered office of the company can be located in addition to the registered office address. This has broadened the state’s legal framework for place of business. In fact, the purpose of the company when establishing a business location is to expand its business activities beyond the head office. Therefore, allowing the establishment of a business location outside the province / city where the company’s head office is located has created favorable conditions for companies to conduct business based on their own needs. Find out with Lawyer X about the procedures for establishing a business location in Vietnam.
Legal grounds
- Decree 108/2018/ND-CP amending and supplementing Clause 2 Article 33 Decree No. 78/2015-ND/CP
Should I set up a branch or a business location?
Establishing a branch is the optimal choice for businesses if businesses need factors such as:
Establish a multi-industry and multi-industry business establishment;
Can sign economic contracts and issue invoices to customers;
Actively in the form of tax accounting.
Save shipping costs, easily take care of customers and partners.
There is no need to go through procedures for a tax identification number;
The establishment operates in provinces and cities other than the province where the enterprise’s head office is located.
However, the procedure for establishment and dissolution of a branch is more complicated and complicated than the procedure for establishment and dissolution of a business location and is not suitable for small businesses, costly in terms of personnel and transportation costs. – related obligations and other legal regulations.
The business location will be the optimal choice for businesses if they want to establish a type of business that meets their needs such as:
Specialized business in 1 field, industry or profession.
The establishment procedure, the operation is simple;
The procedure to terminate the operation is fast about 5-7 working days.
Save shipping costs, easily take care of customers and partners.
Partial reduction of tax-related obligations.
The establishment operates in the same province or city where the enterprise’s head office is located.
Establish a business location in Vietnam
Establish a business location in another province
According to the provisions of Clause 9 Article 1 of Decree 108/2018/ND-CP amending and supplementing Clause 2, Article 33 of Decree No. 78/2015-ND/CP, the business location of an enterprise may be located outside the registered address. registered headquarters.
Dossier to establish a business location in another province
According to the provisions of 9 Article 1 of Decree 108/2018/ND-CP amending and supplementing Clause 2, Article 33 of Decree No. 78/2015-ND/CP, an enterprise’s application for establishing a business location in another province includes: including:
A notice of establishment of a business location, its contents must ensure the following main contents:
Business code;
Name and address of the head office of the enterprise or the name and address of the branch (if the business location is located in the province or centrally run city where the branch is located);
Name and address of business location;
The field of operation of the business location;
Full name, place of residence, number of people’s identity card, citizen identification number, valid passport or other papers of equivalent value to authenticate the lawful personal identity of the head of the business location ;
Full name and signature of the legal representative of the enterprise in the case of an enterprise’s direct business location or the full name and signature of the head of the branch in the case of an online business location. belonging to the branch.
Procedures for establishing a business location in another province
Procedures for establishing a joint stock company’s business location are carried out according to the steps specified in Clause 2, Article 33 of Decree No. 78/2015/ND-CP and Clause 9 Article 1 of Decree No. 108/2018/ND. -CP,
Step 1: Prepare a written notice on the establishment of a joint stock company’s business location.
Step 2: Send Notification. Within 10 working days from the date of deciding to establish a business location, the enterprise must send a notice of establishment of a business location to the Business Registration Office of the Department of Planning and Investment where the business location is located.
Step 3: Receive Notification. Upon receipt of a valid dossier of an enterprise, the Business Registration Office shall input information into the National Information System on Business Registration to request the identification number of the branch, representative office, and business location.
Step 4: Update the business location information of the enterprise on the national database on business registration for enterprises. Within 03 working days from the date of receipt of a valid application, the Business Registration Office shall update the information about the business location in the National Business Registration Database for the enterprise.
Step 5: Return the results to the business. In case the enterprise needs, the Business Registration Office shall issue a Certificate of Business Location Registration.
Procedures for setting up a business location
Step 1: Prepare the necessary documents in the application such as:
Notice of establishment of business location
Identity card or passport of the head of the business location (with notarized stamp)
Letter of introduction or power of attorney for the applicant
Notarized ID card or passport of the applicant.
Step 2: Submit the application at the Department of Planning and Investment where the enterprise registers to establish a business location.
Profile of establishment of business location
Notice of establishment of business location. The content of the notice includes:
Business code;
Name and address of the head office of the enterprise or the name and address of the branch (if the business location is located in the province or centrally run city where the branch is located);
Name of business location: The name of the business location must include the business name with the phrase “Business location” for the business location.
Address of business location: Similar to the head office of the company, the address of the branch or representative office, the registered address of the business location cannot be a group house or an apartment building. If it is a private house with room number, it is also necessary to provide a certificate of land use rights (red book, pink book). In addition, in case the company renting the location registers the best business location, it is necessary to ask the lessor to provide documents proving that the location is not part of an apartment building or a group house.
Areas of operation of the business location: Only conduct business according to the scope of operation of the parent company;
Full name and signature of the legal representative of the enterprise in the case of an enterprise’s direct business location or the full name and signature of the head of the branch in the case of an online business location. belonging to the branch.
Authorization letter for the person performing the dossier.
Copy of legal documents of authorized individual/applicant.
Related article
- Procedures and dossier for dissolution of Joint-Stock Company at Vietnamese.
- Can foreigners set up businesses in Vietnam?
Service of Lawyer X when establishing a Business Location
The receipt of information includes: the name of the business location, the address of the registered office, the field of operation and the manager.
Legal advice to clients on the name of business location, registered office and industry code suitable to the company’s business activities; Consulting on legal issues in the operating conditions of the business Consulting on tax, accounting, social insurance, health insurance, labor insurance and taxes payable upon establishment as well as during operation process of joint stock companies operating in Vietnam.
Draft and prepare all documents, documents and procedures at the request of the Planning and Investment Department and submit them to the entrepreneur for signature (sign at home or company office).
Working directly under the authorization of the customer, independently submitting the application for the establishment of a business location and receiving the business license of the enterprise from the Department of Planning and Investment.
Provide tax forms, contracts, legal documents, tax declaration instructions, invoice printing procedures.
Prepare documents and explain to local tax authorities.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Guidance for setting up a business location in Vietnam”. If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Frequently asked questions
According to the provisions of the Tax Law, the license fee of a business location established from January 1 to June 30 must pay a license fee of VND 1,000,000.
In case the business location is established from July 1, the license fee to be paid is: VND 500,000.
Business location and Branch are both affiliated units of the company and these are 2 affiliated units with different functions and tasks. In addition, there is no procedure for converting the type of affiliated units. Therefore, the business location is not converted into a branch and vice versa.
Conclusion: So the above is Guidance for setting up a business location in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
