Some notes about representative offices and branches of foreign traders in Vietnam

by BichNgoc

Many foreign traders want to know how to establish representative offices and branches in Vietnam. LSX Lawfirm will give you the article: “Some notes about representative offices and branches of foreign traders in Vietnam”, as follows:

Enterprise Law 2020

Decree No. 07/2016/ND-CP

What are the representative offices?

Firstly; a representative office of an enterprise is its dependent unit which acts as the enterprise’s authorized representative, represents and protect the enterprise’s interests. A representative office shall not do business.

Secondly; a branch of an enterprise is its dependent unit which has some or all functions of the enterprise, including authorized representative. The business lines of a branch shall match those of the enterprise.

Some notes about representative offices and branches of foreign traders in Vietnam

The right to establish representative offices or branches of foreign traders in Vietnam

Firstly; foreign traders are entitled to establish their representative offices. They can also establish branches in Vietnam according to Vietnam’s commitments to treaties to which Vietnam is a signatory.

Secondly; each foreign trader shall not establish more than one representative office or branch that has the same name within a province or centrally-affiliated city (hereinafter referred to as “province”).

For example, a foreign trader cannot have two representative offices with the same name in one province.

Obligations of foreign traders to the operation of their representative offices and branches

Foreign traders shall be legally responsible for the entire operations of their representative offices or branches in Vietnam.

The power to grant Licenses for Establishment of representative offices

Firstly; the Department of Industry and Trade of the province where the representative office is expected to be located outside:

  • Industrial parks
  • Export-processing zones
  • Economic zones
  • Hi-tech zones

Accordingly; they shall grant, re-grant, adjust, extend or revoke the License for Establishment of the representative office and shall have the power to have such representative office shut down in case the establishment of the representative office has not been prescribed by specialized legislative documents.

Secondly; management Boards of

  • Industrial parks
  • Export-processing zones
  • Economic zones
  • Hi-tech zones

(Hereinafter referred to as Management Boards)

Accordingly; they shall grant, re-grant, adjust, extend or revoke the License for Establishment of the representative office and shall have the power to suspend the operation of such representative offices located in the above locations in case the establishment of such representative offices has not been prescribed by specialized legislative documents.

The power to grant of Licenses for Establishment of branches

Firstly; the Department of Industry and Trade of the province shall have the power for the License for Establishment of branches to:

  • Grant
  • Re-grant
  • Adjust
  • Extend
  • Revoke

Secondly; they also shall have the power to have such branches shut down in case the establishment of such branches has not been prescribed by specialized legislative documents.

Related article you can also refer to: Procedures for representative office or branch establishment licenses

Should the company establish a representative office or a branch?

Contact LSX Lawfirm

Hope this article “Some notes about representative offices and branches of foreign traders in Vietnam” is useful for you.

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

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