The foreign investor in the BCC contract may set up an operating office in Vietnam to perform the contract. How is the procedure for establishment of an operating office of a foreign investor BCC contract ? Let’s find out with LSX Law firm through the following article.
Investment law 2020
BCC contract concept
Business cooperation contract, also known as BCC contract for short, is a contract signed between investors for business cooperation, profit sharing and product distribution without establishing an economic organization. The subject of a BCC contract can be a Vietnamese individual or organization with each other; or with a foreign individual or organization…
When implementing an investment project under a BCC contract, since there is no economic organization established, foreign investors who want to directly operate the project are allowed to set up an operating office in Vietnam.
Besides, the foreign investor in the BCC contract may set up an operating office in Vietnam to perform the contract. The location of the executive office is decided by the foreign investor in the BCC contract accordingly the contract performance requirements.
Procedures for setting up an operating office of a foreign investor in the BCC contract
Step 1: Submit and receive documents
The foreign investor in the BCC contract shall submit an application for registration of the establishment of an executive office at the Department of Planning and Investment where the operating office is expected to be located.
Method of implementation: Submit directly at the agency competent to receive dossiers or send by post. Dossier include:
- Firstly, the written registration for the establishment of an executive office, including the name and address of the representative office in Vietnam (if any) of the foreign investor in the BCC contract; name and address of the executive office; contents, duration and scope of operation of the executive office; full name, place of residence, identity card, identity card or passport of the head of the executive office;
- Secondly, the decision of the foreign investor in the BCC contract on the establishment of an operating office;
- Thirdly, a copy of the decision to appoint the head of the executive office;
- Lastly, copy of BCC contract.
Number of records: 01 set.
In addition, the Department of Planning and Investment receives the application, returns the license to receive the application and makes an appointment to return the results to individuals and organizations.
Step 2: Settlement of records
The specialized department accepts and considers the validity of the dossier, submits it to the Department’s leader for approval of the result of handling the application
Additionally, implementation time: within 15 days from the date of receiving the prescribed dossier.
Step 3: The result
After 15 days, individuals and organizations receive the results of application processing at the Department of receiving and returning results.
The result received may be the Certificate of operation registration of the executive office; or the Notice of ineligibility for settlement.
When submitting the application and receiving the results, the person doing the procedures must bring the following documents:
- Letter of receipt of application and letter of appointment to return results;
- Identity card or other personal identification document.
- In case the investor or enterprise authorizes another organization or individual to submit the application and receive the result, the person carrying out the procedures must present an ID card or passport or other lawful personal identification papers and one of the following papers:
(i) Firstly, service provision contract with the service organization that submits the application, receives the results, and the recommendation letter from that organization for the individual to submit the application and receive the results;
(ii) Secondly, a written authorization for the individual to submit the application and receive the results as prescribed by law.
Lastly, the above is the basic information about the legal provisions on the establishment of an operating office of a foreign investor in the BCC contract, to avoid legal risks please contact LSX Law firm for more information: 0833102102
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.