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Conditions for establishing a representative office of a foreign company in Vietnam

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Establishing a representative office of a foreign company in Vietnam is an administrative procedure performed directly or authorized by a foreign trader in Vietnam. So this includes submitting an application to the Department of Industry and Trade and receiving a certificate of establishment of a representative office. LSX Lawfirm will give you an article about: “Conditions for establishing a representative office of a foreign company in Vietnam”, as follows:

Law on enterprises 2020

Establishing a foreign representative office in Vietnam

The establishment of a representative office of a foreign company is the basis for traders to learn about the market and organize the implementation of commercial activities in order to expand and develop their business in accordance with current laws. Article 3, Section 1 of the Commercial Law has explained quite clearly about the representative office of foreign companies in Vietnam.

Accordingly, customers can understand:

– Representative office of a foreign company is a dependent unit of a foreign enterprise

– Established in Vietnam according to the legal regulations to promote commercial activities

Basically, it is not too different from the usual type of representative office.

Opening a foreign representative office in Vietnam

The process of establishing a representative office of a foreign company is as follows:

Step 1: Traders prepare information and documents for the establishment of a representative office


So information and documents for the establishment of a representative office of a foreign company are detailed as we have described above

Step 2: Prepare and submit the application for office establishment to the Department of Industry and Trade

So, the foreign trader shall send a dossier of application for a license to establish a representative office to the Department of Industry and Trade in the locality where the representative office is located. Resumes can be sent directly; by post, administrative dispatch; electronic network.

Step 3: The Department of Industry and Trade appraises the application for setting up a representative office of the company

So within 15 days from the date of receipt of complete and valid dossiers, the Department of Industry and Trade shall complete the appraisal and grant the foreign trader a License to establish a representative office and send a copy of the License to the Ministry of Industry and Trade; People’s Committees of provinces and centrally run cities; Tax authorities; The Statistics Office, the provincial-level police agency where the representative office is located. In case the dossier is not valid, within 03 working days from the date of receipt of the dossier, the Department of Industry and Trade must notify in writing for the foreign trader to supplement and complete the dossier.

Opening a foreign representative office in Vietnam


The process of establishing a representative office of a foreign company is as follows:

Step 1: So, Traders prepare information and documents for the establishment of a representative office
Information and documents for the establishment of a representative office of a foreign company are detailed as we have described above

Step 2: So Prepare and submit the application for office establishment to the Department of Industry and Trade
The foreign trader shall send a dossier of application for a license to establish a representative office to the Department of Industry and Trade in the locality where the representative office is located. Resumes can be sent directly; by post, administrative dispatch; electronic network.

Step 3: So the Department of Industry and Trade appraises the application for setting up a representative office of the company
So within 15 days from the date of receipt of complete and valid dossiers, the Department of Industry and Trade shall complete the appraisal and grant the foreign trader a License to establish a representative office and send a copy of the License to the Ministry of Industry and Trade; People’s Committees of provinces and centrally run cities; Tax authorities; The Statistics Office, the provincial-level police agency where the representative office is located. In case the dossier is not valid, within 03 working days from the date of receipt of the dossier, the Department of Industry and Trade must notify in writing for the foreign trader to supplement and complete the dossier.

Step 4: Get a representative office registration certificate


After the application is valid, the registration authority will issue a certificate of establishment of a representative office for the registered trader

Service for setting up branches and representative offices in Vietnam

Procedures for changing the legal representative of Vietnam

Representative office – points to note according to Vietnamese law

Step 5: Submit a notice of operation of a representative office of a foreign company


After so being granted the establishment license, the representative office must carry out the operation notification procedures as prescribed in Clause 1, Section IV of Circular 11/2006/TT-BTM. The license to establish a representative office of a foreign trader is valid for 5 years.

Conditions for establishing a representative office of a foreign company in Vietnam

To so enjoy the benefits always comes with conditions. so establish a representative office of a foreign company in Vietnam is not an exception to that rule; individuals; Foreign organizations that want to be recognized by Vietnamese law granted a license to establish a representative office must comply with the conditions specified in Article 7, Chapter 2, Decree 07/2016/ND-CP.

Conditions for establishing a representative office of a foreign company in Vietnam are as follows:

  • Firstly Personal; foreign organizations are established; business registration in accordance with national regulations; territories or countries; accepted territories. National legislation; territories must be valid for Vietnam
  • Secondly Has been in production; business for at least one year from the date of establishment
  • If the profile of the individual’s business establishment; If a foreign organization has a limited period of operation, that time must be at least one year
  • Then Representative offices that individuals; Foreign organizations established must have contents of operation consistent with Vietnam’s commitments
  • If the content of the activity is not suitable; personal; so foreign organizations that establish representative offices must approved by the Minister of specialized management.

What is the function of a foreign representative office in Vietnam?

So, Representative offices of foreign traders established in Vietnam granted by the Department of Industry and Trade of the province/city where the representative office registered.

The representative office of a foreign trader is a dependent unit and has no business function other than the function of a liaison office; then market research; then promote and promote business investment opportunities of traders that the Office represents; excluding the service industry where the establishment of a representative office in that field is specified in specialized legal documents.

So Annual; then the representative office sends an activity report according to the form to the direct management agency, the Department of Industry and Trade.

Representative office reporting; provide documents or explain matters related to the operation of the Office at the request of competent state management agencies.

Dossier to establish a representative office of a foreign company in Vietnam

To be able to get a certificate of establishment of a representative office in Vietnam from the registry; traders need to prepare registration documents; The application will include the following documents:

– So, 1 Application (application) to establish a representative office (according to the prescribed form)

– 1 copy of the business registration certificate where the enterprise established (or an equivalent document)

– Then 1 Document appointing the head of the representative office

– Then, 1 copy of audited financial statement or written certification of the performance of tax or financial obligations in the latest fiscal year or equivalent document issued by the agency; the competent organization where the foreign trader established shall grant or certify; prove the existence and operation of the foreign trader in the most recent financial year;

– If so the representative is a Vietnamese citizen, a copy of the identity card or passport required. If then the representative is a foreign citizen, a copy of the passport required.

Related questions

Obligations of representative offices of foreign companies?

– Pay taxes and fees according to regulations
– Business activity report
– Some other obligations depending on each specific case

What are the benefits of a representative office of a foreign company?

– Doing business and operating in accordance with the provisions of the license
– Have the right to rent offices, buy business equipment
Implement the labor recruitment process
– Have the right to open accounts at Vietnamese banks
– Engrave the seal and use the seal according to regulations
– Some other benefits

In which case a representative office license is not granted?

To be able to be granted a license to set up a representative office, a trader applying for a permit must meet the conditions prescribed by Vietnamese law, the following cases will not be granted a license.
Failing to satisfy one of the conditions specified in the application for a License to establish a representative office.
Foreign traders apply for a license to establish a representative office within 2 years from the date of withdrawal of the license to establish a representative office.
The establishment of a representative office is restricted in accordance with law for reasons of national defense, security, social order and safety, social ethics and public health.
Other cases as prescribed by law.

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