Legal representative of companies with foreign capital in Vietnam

by HaTrang

When operating in Vietnam, many companies with foreign capital in Vietnam will have the need to appoint foreigners as legal representatives of the company. Appointing a foreigner as the legal representative of the company in Vietnam will help the foreign side better control the management; administration and day-to-day business decisions in Vietnam. However, recently, the regulations on foreign workers working in Vietnam are somewhat stricter; so the appointment of foreigners as Legal representative of companies with foreign capital in Vietnam needs to follow the legal procedures. Let’s learn about this issue with LSX Law firm.

Legal grounds

Circular 08/2013/TT-BLDTBXH issued by the Ministry of Labor, War Invalids and Social Affairs

Decree No. 07/2016/ND-CP

Identify and report the need for foreign workers

A foreign-invested company in Vietnam is responsible for determining the demand for foreign workers of a foreign-invested company in Vietnam; and sending it to the Ministry of Labor, War Invalids and Social Affairs or the Chairman of the Committee. Provincial People’s Committee.

Explanatory report form

Form No. 1 issued together with Circular 08/2013/TT-BLDTBXH issued by the Ministry of Labor, War Invalids and Social Affairs on October 25, 2016.

Implementation time

At least 30 days before the expected date of using foreign workers.

Processing time

Within 15 days from the date of receiving the explanation report of the foreign-owned company, the Ministry of Labor, War Invalids and Social Affairs or the Chairman of the provincial People’s Committee will approve the use foreign workers.

Note: Currently, many representative offices of foreign companies in Vietnam have plans to establish foreign-invested companies, so they expect the head of the representative office to concurrently hold the position of representative according to the law. However, according to Article 33 of Decree No. 07/2016/ND-CP, the legal representative of an economic organization established under Vietnamese law cannot concurrently be:

  • Firstly, head of Representative Office in Vietnam;
  • Secondly, head of Branch in Vietnam. Because the laws of each country are different; foreign investors should pay attention to this regulation in order to have a suitable personnel plan, to avoid losing time or being rejected.

Apply for a Work Permit

Conditions for foreign workers to be granted a work permit include:

  • Having full civil act capacity as prescribed by law;
  • Having health suitable for the job requirements;
  • As a manager, executive officer, specialist or technical worker;
  • Not being a criminal or being examined for penal liability in accordance with Vietnamese and foreign laws;
  • There has been a written approval to use foreign workers from the Ministry of Labor, War Invalids and Social Affairs or the Chairman of the provincial People’s Committee.

Time of implementation: At least 15 working days before the foreign worker is expected to work at the company, the employer must submit an application for a work permit for the foreign worker.

Application place: Department of Labor – Invalids and Social Affairs

Besides, processing time: Within 07 working days from the date of receiving the complete and valid dossier, the Department of Labor, War Invalids and Social Affairs will decide whether or not to issue a work permit to the foreign worker. If not, there will be a written reply stating the reason.

Sign the labor contract

After the foreign worker is granted a work permit, the foreign-invested company in Vietnam must sign a labor contract and send a copy of the contract to the Department of Labor, War Invalids and Social Affairs within 05 days. since signing.

Finally, If you have any questions regarding the content of the article Legal representative of companies with foreign capital in Vietnam or other legal requirements, please contact us  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

Related questions

Which agency issues a license to operate a representative office of a foreign company?

The granting of a representative office establishment license, specified in Decree 07/2016/ND-CP, details the Commercial Law on representative offices; Branches of foreign traders in Vietnam at the Department of Industry and Trade.

What is the function of a representative office?

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

How is the reporting regime for representative offices of foreign companies in Vietnam?

Before January 30; The representative office has to send a report on its activities in the year by post to the Department of Industry and Trade.

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