Requirements for grant of Licenses for Establishment of Vietnam-based representative office of a foreign trader

Requirements for grant of Licenses for Establishment of Vietnam-based representative office of a foreign trader (Internet image)

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

1. What is Vietnam-based representative office of a foreign trader?

Vietnam-based representative office of a foreign trader means a dependent unit of the foreign trader, which is established under the provisions of Vietnamese law to conduct market survey and a number of commercial promotion activities permitted by Vietnamese law.

(Clause 6, Article 3 of the Commercial Law 2005)

2. Requirements for grant of Licenses for Establishment of Vietnam-based representative office of a foreign trader

According to Article 7 of Decree 07/2016/ND-CP, foreign traders shall be granted Licenses for Establishment of representative offices 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 01 year from the date of establishment or registration;

- The Certificate of Business Registration or the equivalent document is valid for at least 01 more year from the date of submission of the application;

- The scope of operation of the representative office is consistent with that in Vietnam’s Commitments to treaties to which Vietnam is a signatory;

- Where the scope of operation of the representative office is inconsistent with Vietnam’s Commitments or the foreign trader is not located in the country or territory being party to treaties to which Vietnam is a signatory, the representative office can be established only if relevant Ministers, Heads of ministerial agencies (hereinafter referred to as “relevant Ministers”) have given approval for establishment of the representative office.

3. Applications for Licenses for Establishment of Vietnam-based representative office of a foreign trader

According to Article 10 of Decree 07/2016/ND-CP, applications for Licenses for Establishment of Vietnam-based representative office of a foreign trader include:

* 01 set of application for License for Establishment of a representative office:

- An application form for License for Establishment of the representative office 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 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;

- Documents on the expected location of the representative office including:

+ Copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the representative office;

+ Copies of documents on the expected location of the representative office in accordance with provisions of Article 28 hereof and related laws.

* The following documents (for the head of the representative office being foreigners) shall be translated into Vietnamese and certified true 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 shall be certified or legalized by overseas diplomatic missions or Consulates of Vietnam under laws of Vietnam

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