In the current process of international integration, businesses are tending to develop not only within the territory of a country or an area; but also want to expand branches to many countries and reach out. Around the world when these enterprises want to open more branches to carry out business activities in different countries; they need to comply with the regulations of the laws of the host country. For foreign traders carrying out business activities in Vietnam; the establishment of a branch must satisfy all conditions accordingly the law and each foreign trader just can establish a maximum of 1 branch within the scope of the law. What’s dossier of establishment of a branch of a foreign trader? Let’s find out with LSX Lawfirm in the following article.
Investment law 2020
Conditions for establishing a branch
Firstly, foreign traders have right to establish and register their business accordingly the laws of the countries or territories participating in international treaties to which Vietnam is a contracting party or recognize by the laws of these countries and territories.
Secondly, foreign traders operating for at least 05 years from the date of establishment or registration;
Lastly, business goods and services must be on the list of goods; and services that foreign traders’ branches and foreign tourism enterprises are permitted to do business in Vietnam accordingly Vietnamese law.
Documents need to prepare
An application form for a branch establishment license made accordingly the form of the Ministry of Industry and Trade (signed by a competent representative of the foreign trader)
Copy of Business Registration Certificate or another document of equivalent value
The document appointing the head of the branch
A copy of the audited financial statement or a written certification of the fulfillment of tax or financial obligations in the latest fiscal year or an equivalent document issued by a competent agency or organization where the trader is located; foreign business establishment or certification, proving the existence and operation of foreign traders in the latest fiscal year
Copy of the branch’s charter
Copy of passport or identity card or citizen identification card (if Vietnamese); or passport copy (if foreigner) of the head of the branch;
Documents on the proposed location of the branch’s head office (head office lease contract; other agreement on lease, for location exploitation…)
- Foreign traders prepare all documents and submit them to the Department of Industry and Trade of the province/city where they intend to locate their head office.
- The Department of Industry and Trade receives the application and processes it.
- After 03 working days from the date of submission of the dossier, the Department of Industry and Trade shall issue a notice of amendment and supplementation if the dossier is not valid.
- After 07 working days from the date of receipt of complete and valid dossiers, the Department of Industry and Trade shall grant the License or not grant the License and must clearly state the reason.
- In the case specified in Clause 5, Article 8 of this Decree and where the establishment of a branch has not yet been prescribed in specialized legal documents, the licensing agency shall send a written request to the Ministry of specialized management for opinions. within 03 working days from the date of receipt of complete and valid dossiers, Within 05 working days from the date of receipt of the document from the licensing agency, the specialized management ministry shall issue a written statement stating its agreement or disagreement with the granting of the branch establishment license, within 05 working days from the date of receipt of the document from the Ministry of specialized management, the licensing agency shall grant or refuse to grant a branch establishment license to the foreign trader, In case of refusal, a written reason must be clearly stated.
Contact LSX Law firm
Finally, hope this article Dossier of establishment of a branch of a foreign trader is useful for you, If you have any questions please contact Lawyer X for quick and best legal services: +84846175333 or email: firstname.lastname@example.org.
The registration fee is VND 100,000, and free if register virtually.
Accordingly, in Vietnam, an enterprise can set up one or more branches; or representative offices in a locality according to the administrative unit boundaries. There is yet any limitation on this issue.
The enterprises may receive the certificate within 03 working days from the date of receipt of complete and valid dossiers.