How an International Organization Could Set up Branch Office in Vietnam?
An unfamiliar business substance or an unfamiliar dealer is permitted to set up a branch office in Vietnam to direct business exercises.
A branch in Vietnam is distinct from a representative office in that it is granted the authority to carry out business activities and generate revenue. While a foreign-owned company established in Vietnam exists independently, a branch is dependent on the foreign business entity that established the branch. The establishment of a branch office in Vietnam will be approved by the Vietnam Department of Industry and Trade, and the Vietnam Ministry of Planning and Investment will be the state agency in charge of coordinating company formation in Vietnam.
In particular, the term "Branch" refers to a subsidiary unit of a foreign business entity that has been established in accordance with Vietnamese law to be able to enter into contracts and engage in the purchase and sale of goods and other commercial activities in accordance with its license for establishment granted in accordance with Vietnamese law and any international treaty to which the Socialist Republic of Vietnam belongs.
The establishment license must be applied for and obtained by the Branch; and have a seal with the branch's name on it.
1. Rights of the Branch in Vietnam
-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.
-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.
-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.
-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.
-To remit profits abroad in accordance with the law of Vietnam.
-To have a seal bearing the name of the branch in accordance with the law of Vietnam.
-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.
2. Requested Conditions to Set Up a Branch Office in Vietnam
An unfamiliar organization which has viability business exercises will be permitted to open branch office in Vietnam in the event that this organization has genuine interest to open the market in Vietnam and meet a few circumstances as underneath:
-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;
-Having been operating for at least five years after its lawful establishment or business registration.
3. Issuance the Certificate of Branch:
The Department of Industry and Trade Department will carry out the issuance of the Certificate of Branch once the foreign company satisfies all Vietnam legal requirements.
The responsible period will be inside 20 working-days after the date of presenting the full substantial records as mentioned.
Comentários