A place of business is a place where a business conducts specific business activities. Business locations has right to conduct business in the lines of business that the company has registered but not all but only a specific industry/group of industries that the business chooses from the business lines of the company or its parent branch . The business location is a dependent accounting unit, without a seal. LSX Lawfirm will provide you information about establishment of a business location of a foreign-invested company.
- Enterprise Law 2020
- Decree 01/2021/ND-CP on business registration.
Procedures for establishing of a business location of a foreign-invested company
Step 1: Prepare documents to establish a business location of a foreign-invested company
After receiving information about the name and address of the business location; the head and industry of the business location; we will prepare documents and send them to customers to sign.
Components of the application file for establishment of a business location
- Firstly, notice of establishment of business location;
- Secondly, authorization letter for individuals to carry out procedures related to business registration
- Lastly, copies of legal documents of authorized individuals.
Step 2: Submit the application file at the Department of Planning and Investment where the enterprise establishes the business location of the foreign-invested company
Application form: submitting the application to the Business Registration Office in an online form through the National Business Registration Portal– https://dangkytinhdoanh.gov.vn/.
Time limit for application submission: Within 10 days from the date of decision to establish a business location; the enterprise shall send a notice of establishment of a business location to the Business Registration Office; where the business location is located;
Time limit for processing dossiers: Within 03 working days from the date of receipt of valid dossiers; the Business Registration Office shall issue the Certificate of operation registration of the branch; or representative office and update information about the application, business location in the National Business Registration Database for enterprises.
In case the enterprise has a need, the Business Registration Office shall grant the business location registration certificate to the enterprise.
In case the application is not valid, the Business Registration Office shall notify in writing the contents that need to be amended and supplemented to the enterprise.
Some notes when establishing a business location of a foreign-invested company
- The address of the business location must not be located in an apartment or dormitory
- Name of business location:
+ Firstly, the name of the business location must be written with the letters of the Vietnamese alphabet; the letters F, J, Z, W, numbers and symbols.
+ Secondly, the name of the business location must include the business name and the phrase “Business location”.
+ Lastly, the proper name part in the name of the business location of the enterprise must not use the phrase “company”, “enterprise”.
- Business location code is a 5-digit code that is issued according to the ordinal numbers from 00001 to 99999. This number is not the tax code of the business location.
- Procedures to do after establishing a business location:
+ Declare and pay license tax at the tax authority: Fulfill the obligation to pay license tax as prescribed at VND 1,000,000/year. A business location is exempt from license tax only when the company or its branch is currently exempt from license tax.
+ Hang signs at the address of the business location.
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Finally, hope this article establishment of a business location of a foreign-invested company is useful for you.
When announcing the establishment of a business location, the company must have a head of the business location and this person can be the legal representative of the company or another person.
Because the function of the representative office and the business lines of the business location are not the same.
And the law does not prohibit the company that has already established a representative office but cannot register to establish a business location, so your company can completely register the establishment of a business location for the company at the address of representative office.