Establishing Vietnam-based Representative Offices and Branches of Foreign Traders

ESTABLISHING VIETNAM-BASED REPRESENTATIVE OFFICES AND BRANCHES OF FOREIGN TRADERS

According to Commercial Law No. 36/2005/QH11: Foreign traders mean traders established and making their business registrations according to the provisions of foreign laws or recognized by foreign laws. Foreign traders are entitled to set up their representative offices or branches and to establish foreign-invested enterprises in Vietnam in the forms provided for by Vietnamese law.

This table compares between Representative Offices / Branches / Foreign-Invested Enterprises established by foreign traders in Vietnam:

Representative Offices Branches Foreign-Invested Enterprises
To recruit employees
To open accounts at banks (USD, VND)
To have seals bearing their names
To enter into contracts in Vietnam
To directly conduct profit-generating acts
To transfer profits overseas
To have the legal entity status
And the Licensing Authority is The Industry and Trade Department/MBZ The Ministry of Industry and Trade According to the Enterprise Law*
Queenlaw Fees (1 USD = 23,000 VND): 13,800,000 VND (600 USD) 13,800,000 VND (600 USD) (Please see here)
Timeframe (expected): 10-20 working days
(In case contents of operation are to comply with Vietnam’s commitments and the foreign trader is located in a country or territory being member to a treaty to which Vietnam is a contracting party)
10-20 working days
(In case contents of operation are to comply with Vietnam’s commitments and the foreign trader is located in a country or territory being member to a treaty to which Vietnam is a contracting party)
Results: RO Establishment License  Branch Establishment License 

Summary::
– Vietnam-based Representative Offices and Branches of Foreign Traders are dependent units of the Foreign Trader.
– Representative Offices are established only to conduct market survey and a number of commercial promotion activities permitted by Vietnamese law.
– Representative Offices HAVE NO right to directly conduct profit-generating activities in Vietnam.
– Branches HAVE the right to conduct commercial activities in Vietnam and transfer profits overseas.

See the details of the law here or contact us:

FOREIGN INVESTMENT DEPARTMENT – QUEENLAW VIETNAM
Address: 26G Nguyen Hong, Ba Dinh, Hanoi
Email: linhtt@queenlaw.com.vn (Ms Linh)
Tel: (84-24) 3350 2022 ext. 172


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