Establishment Of A Foreign Company Branch In Vietnam

Companies often expand their business to foreign markets by setting up corporate branches. In Vietnam, a foreign company’s branch is a subsidiary established and conducting commercial activity following Vietnamese law. However, legal issues are the top concern for companies when they want to set up branches in Vietnam. At Van Law, we understand this and can provide you with the procedures and issues related to establishing foreign company branches in Vietnam according to current law.

Conditions for the establishment of a foreign company branch in Vietnam

-Foreign traders shall be established and registered for business following the laws of the countries and territories of which Vietnam is a member or are recognized by the laws of these countries and regions;

-Foreign traders who have been operating for at least 05 years, from the date of establishment or registration;

-In case the business registration paper or papers of equivalent value of the foreign trader stipulates the operating time limit, that time limit must be at least one year from the date of submission of the dossier;

-The operation contents of the branch must be in line with Vietnam’s commitment to open the market in international treaties to which Vietnam is a member and following the business lines of foreign traders;

-In cases where it is inconsistent with the commitments of Vietnam or foreign traders who are not part of the country or territory participating in the international treaty to which Vietnam is a member, the establishment of the branch must be approved by the Minister of Specialized Management.

Establishment Of A Foreign Company Branch In Vietnam

Dossiers of the establishment of branches

Application for a branch establishment license under form MD5 of Circular No. 11/2016/TT-BCT

-Copies of business registration papers or papers of equivalent value of foreign traders, which must be translated into Vietnamese and certified following Vietnamese law.

-Documents of foreign traders appointing or appointing the head of the branch must be translated into Vietnamese and certified following Vietnamese law.

-Copies of audited financial statements or documents confirming the performance of tax or financial obligations in the most recent fiscal year or papers of equivalent value issued or certified by competent agencies or organizations where foreign traders are established or certified must be translated into Vietnamese certified following Vietnamese law.

Legal papers of the head of the branch must be translated into Vietnamese and certified following the provisions of Vietnamese law.

-Documents on the planned location of the branch headquarters include:

A copy of the minutes of the agreement on the lease of the place or a copy of the document proving that the trader has the right to exploit and use the location to locate the branch headquarters;

A copy of the paper on the expected site of the branch headquarters

Note: For copies of business registration certificates of foreign traders, they must be certified or consular legalized by diplomatic missions or consular offices of Vietnam in accordance with Vietnamese law.

The competence to grant licenses for the establishment of branches

The Ministry of Industry and Trade will issue licenses to establish branches for foreign traders in Vietnam.

The Authority Authority issued a branch establishment license for a foreign company.

The license to establish a branch has a 5-year term. Unless the company’s registration paper or legal documents have restrictions on the length, the period of the branch establishment license will not exceed the remaining time limit set in the company’s registration paper.

The procedure of opening branches of foreign companies

Step 1: The foreign company submits documents to the licensing agency. It can be submitted in person, by post, or online.

-Step 2: The department receives and returns the results of receiving dossiers and granting receipts.

-Step 3: The Duration of the License

Within three working days from the date of receipt of sufficient dossiers, if the dossier is incomplete, the valid licensing agency will require additional amendments.
Within 7 working days from the date of receipt of the complete dossier, the licensing authority will decide whether to grant or not to issue a license.
If having to seek comments, the licensing agency shall send a written request to the specialized management ministry within three days from receipt of the complete dossier. Within 05 days, the church must give an opinion. Within 05 days from the date of receipt of the notice, the licensing agency shall issue or fail to issue a license to establish a branch for foreign traders.

The provisions above are the provisions of Vietnamese law regarding the opening of foreign company branches in Vietnam. If you are still experiencing any difficulties, contact them for assistance as soon as possible. With dedication and an experienced team, we are honored to bring the best service to you.

The source: https://thuvienphapluat.vn/.