How an International Organization Could Set up Branch Office in Vietnam?

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.

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What to Know about Business Registration Certificate in Vietnam

What to Know about Business Registration Certificate in Vietnam?

A company's business registration certificate, which can be printed on paper or electronically and contains information about the company's registration with the Business Registration Authority, is regarded as a legal document.

The principal contents of a business registration certificate in Vietnam must comply with the provisions of the Law on Enterprises: Name and number of the company; Address of the company's principal place of business; For the legal representative of limited liability companies and joint stock companies, full name, contact address, nationality, and number of legal documents; for a partnership company's general partners; for proprietors of private businesses. Name, contact information, nationality, and the number of legal documents held by the member, if any; for limited liability companies, the member's name, enterprise identification number, and head office address; Sanction capital for organizations, speculation capital for private endeavors.

Which means that the company's name must be a Vietnamese name with two parts: the kind of business and the proper name. Currently, four types of businesses are recognized in Vietnam: partnerships, limited liability companies, joint stock companies, and private businesses The Vietnamese letters F, J, Z, and W, as well as numbers and symbols, can be used to write the company's proper name. The National Information System on Business Registration created a series of numbers that are recorded on the Certificate of Business Registration. These numbers are given to a company when it is first established and are included in the enterprise code element. There is only one code that is unique to each business, and that code will not be used by other businesses.

The Vietnam Business Registration Office, the postal service, or the electronic information network are all options for completing the business registration process. The founder of the business must apply through the National Enterprise Registration Portal if they choose electronic information network registration. Electronic business registration documents have the same legal weight as paper business registration documents and will be presented.

Within three working days of receiving the application, the business registration agency is responsible for validating the enterprise registration dossier and issuing the business registration certificate. The company's founder must be informed in writing by the business registration agency of any content that needs to be amended or added if the application is inadequate or not prepared in accordance with the regulations. The founder of the business must be informed in writing and given specific reasons by the business registration authority if it declines to register the business. The business could make its own submissions or hire business lawyers in law firm in Vietnam to help with them.

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How has streamlined the registration procedures for business in Vietnam in 2023?

How has streamlined the registration procedures for business in Vietnam in 2023?

By the end of 2019, more than 30,000 FDI projects with a registered capital of approximately 362 billion USD had chosen Vietnam as their investment destination. As a result of Vietnam's recent focus on the private sector, foreign investors are flocking to the country's market.

How Vietnam Has Streamlined Procedures to Register Business in Vietnam?

Vietnam's participation in various free trade agreements has provided a strong impetus for foreign investors from developed nations to take their first steps in Vietnam. The country has established diplomatic ties with nearly 190 nations worldwide and signed approximately 15 Free Trade Agreements with important trading partners.

Investors must submit an application for the Investment Registration Certificate in order to register a business in Vietnam. The investor must then apply for an Enterprise Registration Certificate after receiving the Investment Registration Certificate.

Investors must first select a business name that is not identical to or confusingly similar to the name of another business that is already registered in the National Database of Business Registration on a national scale. This does not apply to business that have been dissolved or that have had effective court decisions declaring them bankrupt.

The investors or authorized person must then prepare a comprehensive set of application dossiers in accordance with the law and submit them to the Business Registration Office where the planned head office will be located. Based on the appointment date on the receipt, the Business Registration Office will verify the validity of the application dossier. Investors or authorized individuals can either go to the Business Registration Office to receive the application results or register to receive them by mail. After receiving the valid dossier, the deadline for considering and processing it is three working days.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Investors have increased their faith in Vietnam's business and investment climate over time. The socio-political and macroeconomic steadiness are conspicuous highlights for the development of Vietnam's business potential. The Vietnam not set in stone to work on the cycle for speculation application. As a result, Vietnam is and will continue to be an appealing location for investment as well as a promising location for foreign investors to apply for an investment registration certificate and register a business when compared to other countries in the region that are neighboring Vietnam.

ANT Lawyers is a law firm in Vietnam that will always contact the authorities to obtain legal updates on issues pertaining to the registration of investments or the establishment of business in Vietnam.

 

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How do I establish company in Vietnam?

How do I establish company in Vietnam?

To establish a limited liability company, joint stock company or partnership company in Vietnam, foreign investors may invest 100 percent of their capital.

To receive investment registration certificates, first-time foreign investors in Vietnam must have investment projects and complete investment registration or examination procedures at state investment agencies. Business registration certificates and investment certificates must be issued simultaneously. Since the investment certificate was issued, a company with entirely foreign capital has been in existence.

A project dossier to establish company in Vietnam shall comprise:

-Registration/Request for issuance of Investment Certificate;

-A report on financial capability of the investor;

-Draft of the company’s charter;

-List of members of company;

-Copy of the people’s identity card, passport or other lawful personal certification, for individual members;

-Copy of the establishment decision, business registration certificate or other equivalent document, for member organizations;

-Copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives.

-Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;

-Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;

-The joint-venture contract or Business Cooperation Contract (BCC);

-Other documents required by Vietnam law.

Starting a business in Vietnam would take anywhere from 30 days. The additional time may be required on the off chance that the venture region is contingent or the State government necessities to look at the speculation project. In some investment projects, minimum capital, special licenses, or other conditions may be required.

ANT Lawyers would like to assist you in establishing a business in Vietnam. We have staffs that are highly skilled and have a lot of experience with foreign investment.

 

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How to Establish a Business in Vietnam

How to Establish a Business in Vietnam?

Lately, Vietnam has turned into an appealing objective for unfamiliar speculation because of its benefits of safety, political soundness, and great geological situation to exchange with the world. This serves as both the gateway to the economies in the western Indochina Peninsula and the region's connection hub. In addition, in order to make it easier for foreign investors to begin doing business in Vietnam, the government of Vietnam has been increasingly implementing more preferential policies.

Investors in Vietnam must first select an appropriate type of business based on the number of capital contributors, amount of capital contributed, and purse size before starting a business in Vietnam. Foreign individuals and organizations are permitted to establish a limited liability company, joint stock company, partnership, or private enterprise under Vietnam law.

The business line is the next issue to take into consideration. The company must register the appropriate business lines related to business activities in order to continue operating. On the off chance that the chose line of business doesn't need conditions, the venture can go into activity after the foundation of the organization. The majority of businesses would engage in this non-conditional business activity. However, if the investor selects a conditional business line, the company must first meet the necessary requirements, submit an application for a business license in accordance with the requirements, and then begin operations. This is regarded as a conditional investment area, with restrictions such as a license requirement, minimum charter capital, and foreign ownership ratio...

Investors must also select a location for their business that is legally permissible for business operations. The address of the business must be on Vietnam's territory and meet the requirements of the business's purpose, such as not being in a dormitory or apartment building solely for living; The factory must be in the right area for business...

Newly established businesses must have their own proper name, which cannot be the same as or similar to a business that has already been registered in order to serve the management of the state and facilitate business activities. When naming an organization, businesses are not permitted to use the names of functional agencies or state management agencies. The proper name and type of business must be included in the business's name. Businesses can use abbreviations or English names to avoid competing with other businesses. However, they must ensure that the company name does not create confusion by not including any cultural symbols, prefixes, or suffixes.

In Vietnam, investors must apply for an Investment Registration Certificate at an appropriate authority. All projects wishing to establish a new legal entity in Vietnam must go through this procedure. Depending on the project, an investment certificate application takes about 30 days to process. Foreign individuals and businesses must prepare an application for an Enterprise Registration Certificate at the Department of Planning and Investment within seven days of receiving an Investment Registration Certificate. The enterprise now possesses legal status in accordance with the provisions of the Vietnam Law on Enterprises.

The company could perform monthly compliance services on its own or with the assistance of professionals, such as submitting foreign labor reports, investment reports, tax reports, and health and insurance reports to authorities in order to avoid penalties from the start.

ANT Lawyers is a law firm in Vietnam that will always contact the authorities to obtain legal updates on issues pertaining to investment registration or conducting business in Vietnam.

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