Conditions for granting a license to establish a foreign representative office

by DungTran

Conditions for granting a license to establish a foreign representative office. Competence to grant license for the establishment of foreign representative office. Let us learn about this topic with LSX Law firm below:

Decree 07/2016 NĐ-CP

Competence to grant license for the establishment of foreign representative office

According to Article 5; Decree 07/2016 NĐ-CP stipulates the competence to grant a license to establish a foreign representative office as follows:

In general, departments of Industry and Trade of provinces; and centrally-run cities where the trader intends to locate Representative offices outside industrial parks; export processing zones, economic zones, and high-tech zones shall issue and re-issue, adjust, extend; revoke the License to establish a representative office and terminate the operation of a representative office; in case the establishment of a representative office has not been specified in technical legal documents.

Besides, Management boards of industrial parks, export processing zones, economic zones; and high-tech zones (from now on referred to as Management Boards); shall issue, re-grant, adjust, extend and revoke the license to succeed. Establishment of a representative office and termination of operation of a representative office located in industrial parks; export processing zones, economic zones; and high-tech zones in cases where the establishment of a representative office has not yet been prescribed in Clause 1 of this Article. 

Conditions for granting a license to establish a foreign representative office

Foreign traders may have a license to establish a representative office when meeting the following conditions:

Firstly, foreign traders may establish and register their business under the laws of the countries; or territories participating in international treaties to which Vietnam is a contracting party; or permitted by the laws of these countries and territories recognition;

Secondly, foreign traders have operated for at least 01 years from the date of establishment or registration;

Thirdly, in case the foreign trader’s business registration certificate or paper of equivalent validity has a term for operation, such time limit must be at least 01 years from the date of application submission;

Moreover, the operation contents of the representative office must be consistent with Vietnam’s commitments in international treaties to which Vietnam is a signatory;

In case the operation contents of the representative office are inconsistent with the commitments of Vietnam; or the foreign trader is not a member of a country or territory participating in an international treaty; to which Vietnam is a contracting party; the joining The establishment of a representative office must be approved by the Minister; the Head of the ministerial-level agency in charge of specialized management; (from now on referred to as the Minister of specialized management).

Term of establishment license of a foreign representative office

The license for establishing a representative office is valid for five years. Still, it must not exceed the remaining term of the business registration certificate or an equivalent document of the foreign trader. Foreign traders in case such papers have regulations on the time limit.

Besides, the term of a representative office establishment license or extended branch establishment license shall comply with Clause 1 of this Article. 

Cases in which the establishment license of a foreign representative office is not granted

The licensing agency shall not grant a representative office establishment license to a foreign trader in the following cases:

Firstly, failing to satisfy one of the conditions specified in Article 7 in an application for a license to establish a representative office.

Additionally, the foreign trader applies for a license to establish a representative office for 02 years; from the date on which the License to establish a Representative Office in Vietnam revoked; according to the provisions of Article 44 of this Decree.

Also, the establishment of representative offices is restricted under the law for national defense; security, social order and safety, social ethics, and public health.

Other cases as prescribed by law. 

Cases of re-issuance of foreign representative office establishment licenses

Foreign traders shall carry out procedures for re-issuance of a representative office establishment license in the following cases:

1. Relocating the head office of a representative office from a province or city directly under the Central Government, or a geographical area under the management of one Management Board to another province or city under the Central Government or geographical area under the management of another Management Board.

2. The representative office establishment license is lost, destroyed, damaged, or destroyed in any form.

Finally, hope this article is helpful for you!

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

Related questions

Right to establish representative offices of foreign traders in Vietnam

1. Foreign traders may establish their representative offices and branches in Vietnam according to Vietnam’s commitments in international treaties to which Vietnam is a contracting party.
2. A foreign trader may not establish more than one representative office or branch with the same name within a province or centrally run city.

Obligations of foreign traders for the operation of representative offices

Foreign traders must be responsible before Vietnamese law for all their representative offices and branches in Vietnam. 

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