Setting up a representative office in Vietnam is considered one of the simplest forms of investment in Vietnam for foreigners.
Setting up a Representative Office in Vietnam under Vietnam Laws
The representative office will help the foreign trader to lease office, hire people, open bank account, and promote the business activities in Vietnam market.
The chief representative if being foreigner will then could apply for work permit and temporary residence card to stay in Vietnam.
There is no income tax as the representative office therefore the liability to maintain a representative office is less hassle. When the purpose of setting up representative office in Vietnam has been achieved, the closing down of the business shall be not as challenging as closing down a company.
According to Vietnam laws, representative office is a dependent unit, representing the foreign entity’s interests in Vietnam.
Representative office is established by foreign entities to help them liaise, implement research activities, provide information and support them in seeking new partners as well as having understanding of the new market.
The foreign entity has to meet certain conditions before setting up representative office in Vietnam. It has rights and duties in accordance with Vietnam laws.
Note on Preparing the Application for Setting up a Representative Office in Vietnam
When preparing the application for license for setting up a representative office in Vietnam, the foreign entities have to note the following:
Prepare the application forms for setting up a representative office in Vietnam
The application forms as issued by Ministry of Industry and Trade. The application must be signed by legal representative of the foreign entity;
Notarize, legalize and authenticate documents for setting up a representative office in Vietnam
The foreign entity has to prepare and provide business registration certificate, audited financial report, charter, and office lease memorandum of understanding, passport of the legal representatives of the Representative Office in Vietnam.
The documents issued in foreign countries have to be notarized, legalized and authenticated (apostille procedures) in accordance with Vietnam laws to be used in Vietnam. If the business registration certificate or alternative documents have expiry date for business entity’s operation, the remaining time must be at least one year;
Who should be the chief representative?
The Chief Representative of the Representative Office in Vietnam must be different from the Director of the foreign entity.
How long does it take for setting up a representative office in Vietnam ?
It would take around 20 business days since application until receiving the business operation registration of representative office.
How a Law Firm in Vietnam Facilitates Foreign Trader Setting Up a Representative Office in Vietnam?
1. Application Form Preparation
Vietnamese law firms guide foreign entities for setting up a representative office in Vietnam through the preparation of application forms issued by the Ministry of Industry and Trade. They ensure that the forms are accurately completed and signed by the legal representative of the foreign entity. This meticulous process is crucial for a smooth application review.
2. Document Notarization, Legalization, and Authentication
Law firms assist foreign trader in setting up a representative office in Vietnam the notarization, legalization, and authentication of essential documents, such as the business registration certificate, audited financial report, charter, and office lease memorandum of understanding. They navigate the complexities of apostille procedures, ensuring compliance with Vietnam laws for the documents to be valid and accepted in the country.
3. Comprehensive Document Review
Legal professionals conduct a comprehensive review of all documents to be submitted with the application. This involves ensuring that the business registration certificate and alternative documents meet the necessary criteria and have a sufficient validity period of at least one year, in accordance with Vietnam laws.
4. Chief Representative Selection
Law firms advise foreign entities on the selection of the Chief Representative for the Representative Office in Vietnam. They ensure that the chosen individual is distinct from the Director of the foreign entity, adhering to the specific requirements outlined in Vietnamese regulations.
5. Timeline Management
Vietnamese law firms play a crucial role in managing the timeline for setting up a Representative Office. They provide foreign traders with a clear understanding that the process typically takes around 20 business days from the submission of the application to receiving the business operation registration. This proactive management helps foreign entities plan their market entry strategy effectively.
6. Coordination with Government Authorities
Throughout the entire process, law firms act as intermediaries between foreign traders and the relevant government authorities, especially the Ministry of Industry and Trade. They ensure seamless communication, address any inquiries promptly, and facilitate a cooperative environment to expedite the approval process.
7. Legal Compliance Assurance
Ensuring legal compliance is a primary responsibility of law firms. They guide foreign traders to align their application and documents with the specific requirements of Vietnamese laws. This meticulous approach minimizes the risk of delays or rejections due to non-compliance.
8. Post-Approval Support
Law firms extend their support beyond the approval stage, assisting foreign traders with any post-approval requirements or obligations. This includes helping with ongoing compliance, addressing regulatory changes, and ensuring that the Representative Office operates within the legal framework of Vietnam.
In essence, a law firm in Vietnam acts as a strategic partner for foreign traders, navigating the intricacies for setting up a Representative Office in Vietnam. Their expertise not only facilitates a swift and compliant establishment but also provides ongoing support, contributing to the long-term success of the Representative Office in the Vietnamese market.
About ANT Lawyers, a Law Firm in Vietnam
We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.
How ANT Lawyers Could Help Your Business?
You could learn more about ANT Lawyers Foreign Investment Practice or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529