PROCEDURES TO APPLY FOR A LICENSE OF ESTABLISHMENT OF BRANCHES FOR FOREIGN TRADERS IN VIETNAM
TLK Law Firm, one of the prestigious firms, has extensive experience in carrying out the procedures for applying for a license to establish a branch of a foreign trader in Vietnam in a timely, efficient, and conscientious manner based on an unbeatable fee schedule.
1. Commercial Law No. 36/2005/QH11 passed by the National Assembly on June 14, 2005;
2. Decree No. 07/2016/ND-CP issued by the Government on January 25, 2016 detailing the Commercial Law on representative offices and branches of foreign traders in Vietnam;
3. Decree No. 08/2018/ND-CP issued by the Government on January 15, 2018 on
on amendments to certain decrees related to business conditions under state management of the ministry of industry and trade
4. Circular No. 143/2016/TT-BTC issued by the Ministry of Finance on September 26, 2016 providing for fees for processing of applications for the license to establish representative offices of foreign trade promotion organizations or foreign traders in Vietnam, and the collection and transfer thereof.
5. Circular No. 11/2016/TT-BCT issued by the Ministry of Industry and Trade on July 5th, 2016, on forms prescribed in decree no. 07/2016/ND-CP dated January 25th, 2016 of the government on guidelines for the law on commerce in terms of representative offices and branches of foreign traders in Vietnam.
6. Other relevant guiding legal documents.
Do you want to apply for a license to establish a branch of a foreign trader in Vietnam but are unsure how to do this? Or do you know what you need to do but feel overwhelmed when there are many problems related to the procedure for applying for a license? And do you need a reputable and professional legal provider to advise you? If so, please come to TLK Law Firm, because we will advise, guide and provide all services related to the procedure for applying for a license to establish a branch of a foreign trader in Vietnam for Clients through the following writing:
Photo 1. Procedures to apply for a license to establish a branch for foreign traders in Vietnam_ Hotline: (+84) 97 211 8764
I. PROCESS OF APPLYING PROCEDURES FOR BRANCH LICENSE OF FOREIGN TRADERS IN VIETNAM
1. Steps to carry out the procedures to apply for a license to establish a branch for foreign traders in Vietnam
- Step 1: Foreign traders fully prepare an application in compliance with current laws;
- Step 2: The foreign trader submits the application to the licensing agency;
- Step 3: The licensing agency handles the application, checks the rightness and validity of the application;
- Step 4: The foreign trader will be granted the License to establish a Branch in Vietnam based on the time of receiving the results on the Receipt.
2. Components of the application and procedures for applying for a license to establish a branch of a foreign trader in Vietnam
A. Components of the application
1. An application for a branch establishment license made according to a form set by the Ministry of Industry and Trade and signed by the foreign trader’s competent representative;
2. A copy of the business registration certificate or equivalent paper of the foreign trader;
3. The foreign trader’s document on appointment of the head of the representative office;
4. Copies of audited financial statements or documents proving the fulfillment of tax liabilities or financial obligations in the latest fiscal year or equivalent paper issued or certified by a competent agency or organization of the locality where the foreign trader was established proving the actual existence and operation of the foreign trader in the latest fiscal year;
5. A copy of the branch's operation charter;
6. A copy of the passport, citizen’s identity card (for a Vietnamese), or a copy of the passport (for a foreigner) of the head of the branch;
7. Documents on the expected location of the branch’s office, comprising:
- A copy of the memo of understanding or location rental agreement or documents proving the right to use the location for the branch’s office;
- A copy of the document on the expected location of the branch’s office under Article 28 of this Decree and relevant laws
8. Other relevant documents at the request of competent state agencies (if any).
B. Handling agency
The Ministry of Industry and Trade shall grant the License to establish a branch in case the establishment of a branch has not been specified in specialized legal documents.
C. Method of settlement
Foreign traders submit documents directly or by post or online (if applicable) to the licensing agency.
D. Implementation results
The trader receives the License to establish a branch of a foreign trader in Vietnam.
II. SOME IMPORTANT ISSUES RELATED TO PROCEDURES FOR APPLICATION FOR LICENSE FOR ESTABLISHING BRANCH OF FOREIGN TRADERS IN VIETNAM
1. Definition of foreign traders, branches of foreign traders in Vietnam:
A foreign trader is a trader established and registered for business under foreign laws or recognized by foreign laws.
Besides, the Commercial Law 2005 stipulates that the Vietnam-based branch of a foreign trader means a dependent unit of the foreign trader, which is established and conducts commercial activities in Vietnam under Vietnamese law or treaties to which the Socialist Republic of Vietnam is a member.
Note: Foreign traders may set up representative offices and branches in Vietnam; established foreign-invested enterprises in Vietnam under Vietnamese law.
2. Conditions for grant of branch establishment licenses of foreign traders in Vietnam
A foreign trader shall be granted a license to establish a branch when fully satisfying the following conditions:
- The foreign trader has been established or has registered its operation under the law of a country or territory and is a member of a treaty to which Vietnam is a member or recognized by the law of such country or territory.
- The foreign trader has been operating for at least 5 years since its establishment or business registration.
- In case the foreign trader’s business registration certificate or equivalent paper indicates its term of operation, the remaining term must be at least one year by the date of submission of the application.
- Contents of the branch operation must comply with Vietnam’s commitments to market access in treaties to which Vietnam is a contracting party and with the business lines of the foreign trader.
- In case the contents of the operation of the branch fail to comply with Vietnam’s commitments or the foreign trader does not belong to a country or territory that is a member of a treaty to which Vietnam is a member, the establishment of such branch shall be approved by the minister of the line ministry concerned.
3. Time limit of branch establishment licenses of foreign traders in Vietnam
The license for the establishment of branches of foreign traders is valid for 5 years but must not exceed the remaining term of the Business Registration Certificate or papers of equivalent value of foreign traders in case such papers have regulations on time limit.
4. Cases in which a foreign trader is not granted a license to establish a branch in Vietnam
A foreign trader may not be granted a License to establish a branch in Vietnam if it falls into the following cases:
- Failure to satisfy one of the conditions specified in Article 8 of Decree No. 07/2016/ND-CP in case of an application for a branch establishment license;
- Foreign traders apply for a branch establishment license within 2 years from the date of revocation of the license to establish a branch in Vietnam pursuant to Article 44 of Decree No. 07/2016/ND-CP;
- The establishment of a branch is restricted in accordance with law for reasons of national defense, security, social order and safety, social ethics and public health;
- Other cases as prescribed by law.
5. Advantages and disadvantages when establishing branches of foreign traders in Vietnam
- Expanding the business scope of foreign traders, increasing the popularity of products and services of foreign traders among Vietnamese consumers;
- Serving as a connection between Vietnamese Clients and foreign traders;
- Having the right to perform all functions of buying and selling goods and services under the registered business lines of the parent company in Vietnam under Vietnamese law and international treaties to which Vietnam is a member;
- Having the right to register their seal, and sign economic contracts if authorized by the parent company.
- To establish a branch in Vietnam, a foreign trader must satisfy the conditions on market access and other conditions applicable to foreign traders in Vietnam as prescribed by Vietnamese law and international treaties to which Vietnam is a member;
- Initial establishment procedure which is a complicated operation registration procedure equivalent to setting up a new company establishment procedure;
- Having an obligation to establish and maintain an accounting system; simultaneously, independently, and fully submitting reports as an independent business entity;
- Must pay annual business-license tax;
- Must complete settlement procedures before dissolution.
Photo 2. Procedures to apply for a license to establish a branch for foreign traders in Vietnam_ Hotline: (+84) 97 211 8764
III. HOW SHOULD YOU CHOOSE THE BEST LEGAL SERVICE PROVIDER IN VIETNAM?
An organization of high-quality and renowned legal services should meet the following criteria:
First, they must be an official legal organization with a legal operating license;
Second, their Board of Directors must be lawyers, experienced and it will be better if they have a high degree.
Third, they have a team of lawyers, a professional and well-trained human resource system;
Fourth, they are friendly and dedicated. They make every effort for the benefit of Clients and consider Clients satisfaction and work quality as one's honor;
Fifth, professional, thoughtful, flexible, and logical service delivery process to optimize work performance and maximize Clients time savings;
Sixth, reasonable and competitive service prices;
Seventh, wide range of services in both the field of providing service packages in the same field for Clients to choose the appropriate service package, as well as being able to provide comprehensive support to Clients throughout the operation process. motion;
Eighth, they have capable of connecting – promoting commercial relationships for Clients who have specific requirements.
=> Any client wants to choose a professional and reputable legal service provider because no one wants to take the chance of losing money or time, coupled with the results that aren't what they were expecting. Finding such an organization, however, is difficult due to a large number of service providers available in the Vietnamese market today, all of which are of varying quality.
TLK Law Firm does not claim to be the best legal service provider on the market, but we meet all of the above criteria and more. Therefore, TLK Law Firm will unquestionably provide a good service for you.
IV. SOME QUESTIONS RELATED TO THE LICENSE OF BRANCH ESTABLISHMENT OF FOREIGN TRADERS IN VIETNAM
Question 1: Does the change of the head of a branch of a foreign trader in Vietnam need to be adjusted to the branch establishment license?
Answer: Yes, because pursuant to Clause 3 Article 15 of Decree No. 07/2016/ND-CP, the foreign trader must carry out procedures for modifying the license to establish a branch in the case of “Replacement of the head of the representative office or branch".
Thus, if the foreign traders wish to change the head of the branch, they must carry out procedures for modifying the branch establishment licenses. .
Question 2: I am a foreign trader. I am planning to establish a branch in Vietnam. However, I have some questions regarding the branch naming. Hope you can answer my question.
Pursuant to Article 29 of Decree 07/2016/ND-CP , the name of a branch of a foreign trader in Vietnam is prescribed as follows:
- The name of a representative office or branch shall be written using the Vietnamese alphabet, the letters F, J, Z and W, numerals and symbols.
- The name of a representative office or branch must include the name of its foreign trader and the phrase “representative office” or “branch”.
- The nameplate of a representative office or branch shall be put up at its office. The size of the name of the representative office or branch must be smaller than that of the name of its foreign trader printed on transaction documents, records and publications issued by the representative office or branch.
The above information is broad consulting content we would like to provide Clients. As a service provider, we are always aware of and ready to assist Clients with their needs and problems. If you have any further questions or require more detailed guidance, please contact the hotline: +(84) 97 211 8764 to get direct consulting (free consultation).
Thank you very much!
Business and Investment Department – TLK Law Firm
Contact TLK Law Firm for more information.
03 working days from the date the competent authority receives the valid application.
1. Support for Clients in connection - trade promotion during operation.
2. Discount % service fee when Clients use the service for the second time.
3. Free legal advice on business law for one year (if you are an organization or a business).
4. Free legal care and advice on tax law - accounting for businesses within one year (if you are an organization or a business).
5. Provide the internal management system of the enterprise (if the Clients is an organization or an enterprise).
We are always ready to be a companion, dedicated and solid legal fulcrum for our Clients.
Wishing Clients good health and prosperous development!
Please contact us using the information below if you require guidance or assistance.
TLK LAW FIRM
- ĐT: (+84) 243 2011 747 Hotline: (+84)97 211 8764
- Email: email@example.com Website: tlklawfirm.vn