Establishing a Representative Office in Vietnam: A Simple Investment Route for Foreigners
Setting
Up a Representative Office in Vietnam Under Vietnam Law
Establishing a representative office in Vietnam is
one of the simplest ways for foreign investors to enter the Vietnamese market.
A representative office allows foreign traders to
lease office space, hire staff, open bank accounts, and promote their business
activities in Vietnam.
If the chief representative is a foreigner, they can
apply for a work permit and a temporary residence card to live and work in
Vietnam.
Since representative offices are not subject to
income tax, maintaining one is less burdensome compared to a full-fledged
company. Additionally, when the office has fulfilled its purpose, the process
of closing it down is less complicated than that of dissolving a company.
According to Vietnamese law, a representative office
is a dependent unit that represents the interests of a foreign entity in
Vietnam. These offices are established by foreign companies to conduct market
research, provide information, assist in finding new business partners, and
gain an understanding of the local market.
Foreign entities must meet certain conditions before
establishing a representative office in Vietnam. The office operates in
compliance with Vietnamese law and has specific rights and obligations.
Important
Notes for Preparing the Application to Establish a Representative Office in
Vietnam
When preparing the application for a representative
office license in Vietnam, foreign entities should keep the following points in
mind:
Complete
the Application Forms
The application forms for establishing a representative
office in Vietnam are issued by the Ministry of Industry and Trade. These forms
must be signed by the legal representative of the foreign entity.
Notarize,
Legalize, and Authenticate Documents
The foreign entity must submit the business
registration certificate, audited financial statements, charter, office lease
agreement, and the passport of the legal representative of the representative
office in Vietnam. Documents issued abroad must be notarized, legalized, and
authenticated (apostille procedures) according to Vietnamese law for use in
Vietnam. If the business registration certificate or equivalent documents have
an expiration date, there must be at least one year remaining.
Who
Can Be the Chief Representative in Vietnam?
The Chief Representative of the office in Vietnam
must be a different individual from the Director of the foreign entity.
Timeline
for Setting up a Representative Office in Vietnam
The process of setting up a representative office in Vietnam generally takes about 20 business days from the submission of the application until receiving the business operation registration for the office.