Fees for issuance of Licenses for Establishment of representative offices in Vietnam

Fees for issuance of Licenses for Establishment of representative offices in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. The power to grant Licenses for Establishment of representative offices in Vietnam

The power to grant Licenses for Establishment of representative offices according to Article 5 of Decree 07/2016/ND-CP is as follows:

- The Department of Industry and Trade of the province where the representative office is expected to be located outside industrial parks, export-processing zones, economic zones or hi-tech zones shall grant, re-grant, adjust, extend or revoke the License for Establishment of the representative office

And shall have the power to have such representative office shut down in case the establishment of the representative office has not been prescribed by specialized legislative documents.

- Management Boards of industrial parks, export-processing zones, economic zones or hi-tech zones (hereinafter referred to as Management Boards) shall grant, re-grant, adjust, extend or revoke the License for Establishment of the representative office and shall:

Have the power to suspend the operation of such representative offices located in industrial parks, export-processing zones , economic zones or hi-tech zones in case the establishment of such representative offices has not been prescribed by specialized legislative documents.

2. Fees for issuance of Licenses for Establishment of representative offices in Vietnam

Fees for licensing the establishment of representative offices of foreign traders in Vietnam according to Article 4 of Circular 143/2016/TT-BTC are as follows:

- Foreign trade promotion organizations or foreign traders must pay the following fees for processing of their applications for the license to establish representative offices in Vietnam:

+ New license: VND 3,000,000 (three million)/an application;

+ Re-issuance, modification or renewal of license: VND 1,500,000 (one million and fife hundred thousand)/an application.

- Foreign trade promotion organizations or foreign traders must pay fees for processing of their applications for the license to establish representative offices in Vietnam in Vietnamese Dong (VND).

3. Conditions for issuance of Licenses for Establishment of representative offices in Vietnam

According to Article 7 of Decree 07/2016/ND-CP, foreign businesses 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.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE