Activities of headquarters and representative offices in Vietnam

by DungTran

Activities of headquarters and representative offices in Vietnam. Activities of Head of Representative Office. Name and headquarters of Representative Offices. Let us learn about this topic with LSX Law firm below:

Activities of the management apparatus of the representative office in Vietnam

Firstly, the foreign trader shall decide the management apparatus and personnel of the representative office.

In addition, the employment of foreign workers in representative offices must comply with labor laws and Vietnam’s commitments in international treaties to which Vietnam is a contracting party. 

Headquarters of Representative Offices

 The location of the head office of a representative office of a foreign trader must conform to the provisions of Vietnamese law on security; order, occupational safety, and health conditions; and other conditions according to the provisions of law.

 Besides, representative offices may not lend or sublease their headquarters. 

Name of Representative Offices in Vietnam

Firstly, the name of the representative office must be written with the letters of the Vietnamese alphabet; the letters F, J, Z, W, numbers, and symbols.

Secondly, the name of the representative office must bear the name of the foreign trader and the phrase “representative office” in the case of a representative office.

Finally, the name of the representative office must be written or attached at the representative office’s headquarters. The name of the representative office is printed or written in smaller font size than the name of the foreign trader on transaction papers; documents, and publications issued by the representative office. 

Activities Contents of representative offices in Vietnam

Representative offices perform the functions of a liaison office; market research, and promotion of business investment opportunities of the traders they represent; excluding the service industry where the establishment of a representative office in that field is specified in specialized legal documents. 

Activities of reporting regime

In general, before January 30 of each year; the representative office is responsible for sending a report according to the form set by the Ministry of Industry and Trade on its activities in the previous year by post to the licensing agency.

Also, representative offices must report; provide documents, or explain issues related to their operations at the request of competent state management agencies. 

Activities of Head of Representative Offices in Vietnam

Firstly, the head of a representative office must be responsible to a foreign trader for his or her operation and that of the representative office to the extent authorized by the foreign trader.

Secondly, the head of the representative office must take responsibility for his/her activities in case of performing activities outside the scope authorized by the foreign trader.

Moreover, the head of the representative office must authorize in writing another person to perform the rights and obligations of the head of the representative office at law when leaving Vietnam. This authorization must be approved by the foreign trader. The head of the Representative Office is still responsible for the exercise of the authorized rights and obligations. 

In case the head of the representative office is not present in Vietnam for more than 30 days without authorizing another person to exercise the rights and obligations of the head of the representative office or is dead, missing, or temporarily If imprisoned, sentenced to prison, restricted from losing civil act capacity, the foreign trader must appoint another person to be the head of the representative office.

Besides, Activities of Head of Representative Offices in Vietnam also is the head of a representative office of a foreign trader may not concurrently hold the following positions:

Head of a branch of the same foreign trader;

Heads of branches of other foreign traders;

The legal representative of such foreign trader or other foreign traders;

The legal representative of an economic organization established in accordance with the laws of Vietnam.

In cases where a foreign trader authorizes the head of a representative office to enter into a contract, amend or supplement the signed contract, the foreign trader must authorize each foreign trader in writing times of entering into contracts; amending, and supplementing signed contracts. 

Rights and obligations of representative offices

1. Representative offices are entitled to have their legitimate rights; and interests protected during their operation in Vietnam in accordance with Vietnamese law.

2. Representative offices shall exercise their rights and perform their obligations; in accordance with the provisions of the Commercial Law and in accordance with the contents of the License. 

Finally, hope this article is about Activities of headquarters and representative offices in Vietnam is helpful for you!

If you have any questions; please contact Lawyer X for quick and best legal services: 0833102102.

Related questions

What happens if the head of the representative office has not returned by the expiration of the authorization period?

In case the authorization period expires but the head of the representative office has not returned to Vietnam; and without other authorization, the authorized person has the right to continue to exercise the rights and obligations of the head of the representative office within the scope of authorization; until the head of the Representative Office returns to work at the Representative Office; or until the foreign trader appoints another person as the head of the Representative Office.

If the representative office violates this regulation, how about the penalize?

Representative offices that violate the provisions of law shall, depending on the nature and seriousness of their violations, be handled in accordance with the law on handling of administrative violations.

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