In the context of economic integration, the attraction of investment capital from foreign companies into Vietnam is increasing. Therefore, the demand for establishing representative offices in Vietnam by FDI enterprises is becoming more popular than ever. A representative office (RO) not only helps businesses establish a presence in Vietnam but also serves as an important bridge to access customers, partners, and potential markets. However, the establishment process is not always smooth, especially when facing legal barriers. This article provides detailed information about the service of establishing a foreign representative office in Vietnam and answers all your questions about this field.
SERVICE FOR ESTABLISHING A FOREIGN REPRESENTATIVE OFFICE IN VIETNAM
Foreign Representative Office in Vietnam
A foreign representative office (RO) in Vietnam is a form of operation for foreign companies, enterprises, and organizations in Vietnam. The RO does not engage in business activities or provide services for profit. Instead, it acts as a "bridge" between the parent company abroad and the Vietnamese market.
Establishing an RO in Vietnam is the process by which a foreign company sets up a dependent unit in Vietnam. To establish an RO, a foreign direct investment (FDI) company needs to obtain an operating license from the Vietnamese state management agency. After obtaining the license, the company must complete legal conditions, physical facilities, and recruit personnel to ensure the RO can operate in Vietnam.
Service for Establishing a Representative Office for Foreign Companies in Vietnam
The service for establishing a foreign representative office in Vietnam means providing support and consulting services for FDI enterprises wishing to set up an RO in Vietnam. This service includes helping businesses understand legal regulations, prepare documents, submit and follow up on the licensing process. Additionally, it supports related issues such as taxes, accounting, recruitment, and office leasing. The main purpose of this service is to reduce procedural burdens and ensure that businesses comply with Vietnamese laws when establishing and operating their representative offices.
Procedures for Establishing a Foreign Representative Office in Vietnam
Below are the general procedures applicable to the establishment of an RO for both Vietnamese companies and foreign-invested companies in Vietnam:
Step 1: Organize Documents
- Notarized ID card of the head of the RO.
- Detailed information about the RO: name, address, and phone number, etc.
- Business registration certificate of the company.
Step 2: Prepare Documents
- After obtaining the above information, Invest Talent will prepare the documents for the business.
- Within one day, the complete documents will be sent to the customer for signing and stamping.
Step 3: Submit Documents and Announce Establishment
- Documents are submitted to the Business Registration Office of the province or city where the office is to be located.
- Pay fees and announce office information on the National Business Registration Portal.
Step 4: Receive Operating License
- The Business Registration Office will review the validity of the documents within 03 working days from the date of receipt.
- If the documents meet the requirements, the Business Registration Office will issue the Certificate of Operation Registration for the branch or RO.
- If the documents are not valid, the office will notify in writing, stating the contents that need to be amended or supplemented.
Step 5: Engrave Seal (Optional)
- The RO needs to engrave its official seal and commence operations.
Step 6: Contact Invest Talent Company in Vietnam
- We can provide End-to-end consulting — from representative office registration to recruiting Key Personnel for your operations in Vietnam
Why FDI Enterprises Should Outsource the Service of Establishing a Foreign Representative Office in Vietnam ?
When entering a new market, FDI enterprises not only face language barriers but also legal issues. This is why FDI enterprises should use services from experts. Vietnamese laws frequently change and update new circulars, making legal compliance complex and prone to many risks. This involves not only taxes and labor but also many other areas such as commerce, investment, and resource management. For businesses that do not have in-depth knowledge of Vietnamese legal regulations, such as FDI enterprises, ensuring everything runs smoothly can become a burden. Therefore, outsourcing the service of establishing a foreign representative office in Vietnam will help businesses save time and minimize risks, ensuring efficient and lawful business operations.
Some Questions Related to the Service of Establishing a Foreign Representative Office in Vietnam
- What is the function of an RO?
- The RO mainly focuses on transactions and marketing.
- Is it necessary to engrave a new seal for the RO?
- This depends on the needs of the business. It can choose to engrave a new seal or not.
- Where is the RO's tax accounted for?
- The RO's tax will be accounted for by the parent company.
- Can the RO engage in business activities?
- The RO only performs marketing, promotion, and other activities supporting the parent company.
- Does the RO have to pay business license tax?
- The RO does not engage in business activities, so it does not need to pay business license tax.
- Can the RO issue VAT invoices?
- Since it does not engage in business activities, the RO does not have the right to issue VAT invoices.
- Does the RO have legal status?
- The RO operates under the management of the parent company and does not have its own legal status.