A foreign business entity or a foreign trader is allowed to set-up a branch office in Vietnam to conduct business activities.
Having the right to conduct business activities and make the profit are how a branch differs from a representative office in Vietnam.
Specifically, branches of foreign traders in Vietnam (called “branches”) are subordinate units of foreign traders established under the laws of Vietnam to sign contracts in Vietnam and conduct activities is the purchase and sale of goods and other commercial activities match the license under the provisions of the law of Vietnam and the international treaties to which the Socialist Republic of Vietnam is a member.
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The right of the branch
– Office rental, lease or purchase equipment, and facilities required for the operation of the branch.
– To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.
– Perform the contract in Vietnam according to the activities stated in the license branch, and according to the law of Vietnam.
– Open the account in Vietnam and allow foreign exchange bank operation in Vietnam.
– Transfer of profits abroad under the laws of Vietnam.
– To have a seal bearing the name of the branch in accordance with the law of Vietnam.
– To conduct activities is the purchase and sale of goods and other commercial activities match the license under the provisions of the law of Vietnam and the international treaties to which the Socialist Republic of Vietnam is a member.
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To be granted the Establishment of Branch License, the foreign trader must have the following conditions:
– The foreign trader was recognized by the law of the country where it has been lawfully established or made its business registration
– The foreign trader has been operated at least 5 years from the date of establishment or registration
-The scope of operation of the branch must comply with Vietnam’s WTO Commitments on market approach in treaties to which Vietnam is a member and conformable with business lines of the foreign trader;
– In case the scope of operation of the branch is inconsistent with Vietnam’s Commitments or the foreign trader is not located in country or territory which is a member of any treaty to which Vietnam is a member, the establishment of the branch must be accepted by the Minister of relevant Ministry.
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Profile establish the branch of foreign traders
– Application to establish a branch license (use the form published by the Ministry of Industry and Trade) signed by the authorized representatives of the foreign traders
– The copy of the certificate of establishment or any equivalent document of the foreign trader
– Application to establish a branch license (use the form published by the Ministry of Industry and Trade) signed by the authorized representatives of the foreign traders
– The copy of the branch’s charter
– The copy of ID card or passport of the head of the branch
– Document about the intended head office location ò the branch, including:
+ The copy of the lease agreement or documents proving that the trader has the rights to use the location
+ The copy of documents explaining the intended location of the branch: the location must comply with the regulation on security, occupational hygiene and safety and other relevant regulation
+ The branch doesn’t have the right to lend or release the location
We are committed to always accompany you during business operations. your business or individual have any questions please contact us at:
Address: 5th floor, no. 100 Thai Ha, Dong Da Dist, Hanoi
Hotline: 0962690696 (support 24/7) – Lawyer: Minh Phuong
Website: http://www.tuvanvietluat.com.vn/
Email: info@tuvanvietluat.com.vn
