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

The power to grant Licenses for Establishment of representative offices in Vietnam (Internet image)

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

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

According to Clause 6, Article 3 of the Law on Commercial 2005, 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.

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

Specifically, Article 5 of Decree 07/2016/ND-CP stipulates the power to grant Licenses for Establishment of representative offices 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.

Requirements for grant of Licenses for Establishment of representative offices in Vietnam

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.

(Article 7 of Decree 07/2016/ND-CP)

Procedures for grant of Licenses for Establishment of representative offices in Vietnam

According to Article 11 of Decree 07/2016/ND-CP, procedures for grant of Licenses for Establishment of representative offices are prescribed as follows:

(1) The foreign trader shall submit the application to the licensing agency where the representative office is expected to be located directly or by post or online (where applicable).

(2) Within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete). The request for supplementation to the application shall be made only once during the processing of such application.

(3) Apart from those specified in (4), the licensing agency shall send the applicant a written notification of whether the license or establishment of the representative office is granted or not within 07 working days from the date of receipt of the valid application. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

(4) For those specified in clause 5, Article 7 of Decree 07/2016/ND-CP and the establishment of representative offices that has not prescribed by specialized legislative documents, the licensing agency shall submit a written request for directions to the relevant Ministry within 03 working days from the date of receipt of the valid application.

Within 05 working days from the date of receipt of the request for directions from the licensing agency, the relevant Ministry shall submit the licensing agency a written notification of whether or not they approve for the application .

Within 05 working days from the date of receipt of the notification from the relevant Ministry, the licensing agency shall send the applicant a written notice of whether the License for Establishment of the representative office is granted . In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE