Termination of operation of representative offices of foreign trader in Vietnam
Foreign Traders wishing to terminate the operation of representative office in Vietnam need to complete the procedure at Tax authorities, the Provincial Department of Industry and Trade and the procedure to return the seal at the police.
Pursuant to the provisions of the Vietnam laws, the termination of operation of representative offices of foreign traders in Vietnam at the Provincial Department of Industry and Trade shall be conducted as follows:
Preparation of dossiers for termination of operation of representative offices includes:
- Notice of termination of operation of the representative office, made according to the form set by the Ministry of Industry and Trade, signed by the competent representative of the foreign trader.
- List of creditors and unpaid debts, including tax debts and social insurance premiums;
- List of employees and their respective current interests;
- Original License for establishment of representative office.
- Documents evidencing that the representative office has fulfilled all tax and financial obligations to the State of Vietnam
The order and procedures for termination of operation of representative offices at competent agencies shall be as follows:
- The foreign trader submits a dossier for termination of operation of the representative office directly or via post or online (if applicable) to the Provincial Department of Industry and Trade (or the Management Board of Industrial parks, export processing zones, economic zones and hi-tech parks) where the representative office is licensed.
- Within three working days from the date of receipt of the file, the competent authority shall examine and request the supplement if the dossier is incomplete and invalid. Requests for supplementary records are made at most once during the process of processing applications;
- Within a time-limit of five (05) working days from the date of receipt of a complete and valid file, the competent authority shall be responsible to publish on its website the termination of operation of the representative office.
- Foreign traders shall publicly post up the termination of their operation at the representative office.
Foreign traders whose representative offices have terminated of operation shall be responsible for performing contracts, paying debts, including tax debts and settling lawful interests for laborers who have worked at the representative office in accordance with the laws.
Representative office in Vietnam could be terminated because the foreign trader might has no further interests in Vietnam or change its business model i.e. set-up 100% foreign owned company in Vietnam instead.
It is important that, the foreign trader follow the laws to terminate its representative office, by fulfilling the tax obligations, request the Department of Trade and Industry, and return the seal to the public security.