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.
Σχόλια