What are the requirements for establishing a branch of a foreign trader in Vietnam? How long are the effective periods of Licenses for Establishment of branches?
What are the requirements for establishing a branch of a foreign trader in Vietnam?
Pursuant to Article 8 of Decree 07/2016/ND-CP of Vietnam, foreign traders shall be granted Licenses for Establishment of branches if they satisfy the following requirements:
- The foreign trader is incorporated and registers for doing business in accordance with provisions of laws of countries or territories being parties to treaties to which Vietnam is a signatory or is recognized by the aforesaid countries or territories;
- The foreign trader has come into operation for at least 05 year from the date of establishment or registration;
- The Certificate of Business registration or equivalent document is valid for at least 01 more year from the date of submission of the application;
- The scope of operation of the branch is conformable with Vietnam’s Commitments to market access stipulated in treaties to which Vietnam is a signatory shall be consistent with lines of business of the foreign trader;
- Where the businesses of the representative office is inconsistent with Vietnam’s Commitments or the foreign trader is not located in one of countries or territories being parties to treaties to which Vietnam is a signatory, the representative office can be established only if they obtain a prior consent of the relevant Minister for establishment of the representative office.
What are the requirements for establishing a branch of a foreign trader in Vietnam? How long are the effective periods of Licenses for Establishment of branches?
What is the application for establishing a branch of a foreign trader in Vietnam?
Application for establishing a branch of a foreign trader in Vietnam according to Article 12 of Decree 07/2016/ND-CP of Vietnam is as follows:
An application shall include:
- An application form for license for establishment of the branch using the form promulgated by the Ministry of Industry and Trade and signed by a competent representative of the foreign trader.
- Copies of the Certificate of Business Registration or equivalent documents of the foreign trader;
- A letter of appointment of the head of the branch;
- Copies of audited financial statements or certificates of fulfillment of tax liabilities or financial obligations of the last fiscal year or equivalent documents as proof of existence and operation of the foreign trader issued or certified by competent authorities where such foreign trader is established;
- Copies of the branch charter;
- Copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the head of the branch;
- Documents on the expected location of the branch including:
+ Copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the branch;
+ Copies of documents on the expected location of the branch under Article 28 hereof and provision of related laws.
The following documents shall be translated into Vietnamese and certified true in accordance with laws of Vietnam. Documents specified in point b, clause 1 of this Article shall be certified or legalized by overseas diplomatic missions or Consulates of Vietnam in accordance with laws of Vietnam.
- Copies of the Certificate of Business Registration or equivalent documents of the foreign trader;
- A letter of appointment of the head of the representative office;
- Copies of audited financial statements or certificates of fulfillment of tax liabilities or financial obligations of the last fiscal year or equivalent documents as proof of existence and operation of the foreign trader issued or certified by competent authorities where such foreign trader is established;
- Copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the head of the representative office;
Copies of the Certificate of Business Registration or equivalent documents of the foreign trader must be certified or legalized by a diplomatic mission or consular office of Vietnam abroad in accordance with regulations of Vietnamese law.
How long are the effective periods of Licenses for Establishment of branches?
According to the provisions of Article 9 of Decree 07/2016/ND-CP of Vietnam:
- The License for Establishment of a representative office or branch shall be valid for 05 years but not exceeding the remaining effective period of the Certificate of Business Registration or the equivalent (for documents having expiry date);
- The effective period of an extended License for Establishment of the representative office or branch shall be equal to that of the current license.
- The extension of the license or establishment of the representative office or branch shall comply with clause 1 hereof.
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