Thứ 7, 07-03-2020 , 03:16:00 PM

A Representative Office (RO) offers a low-cost entry for companies seeking to gain a better understanding of the Vietnamese market. As such, this option is among the most common for first-time entrants to the Vietnamese market and often precedes a larger presence within the country.

What are ROs permitted to do?

ROs are permitted to engage in the following activities:

  1. Conducting market research;

  2. Acting as a liaison office for its parent company;

  3. Promoting the activities of its head office through meetings, and other activities, that leads to business at later stages.

    Representatives offices are dependent on their parent company and are not allowed to generate their own profits or enter directly into contracts. They are also not allowed to issue invoices.

    What do you need to get a license?

    Pre-licensing checklist for setting up a RO:

     

    1. File an application for setting up a RO with company chop or seal;
    2. Appointment letter of Chief of RO with identification documents and company seal;
    3. Power of attorney in favor of consultant to submit the application dossier;
    4. Certificate of Incorporation for the Company and/or Business Registration Certificate of the Company;
    5. Audited financial report of the company for the latest fiscal year;
    6. Memorandum of Understanding (MoU) of leasing office or leasing contract;
    7. Documents providing legal rights of landlord regarding the right of leasing office

For steps 1 to 6, the foreign entity would require one notarized and consularized copy of each document and a translated copy in Vietnamese by a Vietnamese competent authority.

A signed leasing contract is also required before registering a RO in Vietnam.

What do you need to do after you get the license?

Post-licensing checklist for setup a RO:

  1. Make a seal for the RO;
    • License on the establishment of RO
    • Passport of Chief of RO if foreigner or passport/ID card if Chief is Vietnamese
  2. Register a Tax code for RO;
    • Declaration to register a tax code
    • Power of attorney
    • Certificate of seal registration
    • Certificate of RO in Vietnam
  3. Open a bank account of RO;
    • License on the establishment of RO
    • Certificate of seal registration
    • Certificate of tax code registration
    • Letter of authorization appointing the authorized signatories of the bank accounts
  4. Announcement of the establishment of RO of Company.

For steps 8 to 10, notarized and translated documents will be required to complete the process.

How long does it take to set up an RO?

ROs can be set up in between six to eight weeks. We recommend hiring a professional service to deal with the myriad of laws and procedures.

Given the absence of in-country revenue and associated licensing requirements, the setup process for this option does not entail as many bureaucratic procedures as others.

An RO license is valid for five years but can be extended for another five years.

What comes next?

Hiring, tax, and reporting.

There is no cap on the number of local and expatriate employees that a representative office can hire as long as their employment is properly documented.

All expatriate hires including the chief representative are required to have a work permit. ROs can hire staff directly or use the assistance of recruiting agencies
 

An RO is not subject to Vietnamese corporate income tax (CIT). However, it is responsible for declaring its employees’ personal income tax (PIT).

In order to determine payable tax, ROs have to undertake a tax audit which checks all revenues and expenses during the tax term to establish grounds for declaring and paying tax.

The RO also has to send reports of its activities of the previous year to the Department of Industry and Trade before January 30 of each year.
 

Giới thiệu

CÔNG TY LUẬT Á ĐÔNG (ADONG LAWFIRM) xin kính chào Quý khách hàng!

CÔNG TY LUẬT Á ĐÔNG (ADONG LAWFIRM) xin kính chào Quý khách hàng!

Được chuyển đổi từ Công ty TNHH Tư vấn Đầu tư Á Đông (thành lập ngày 23 tháng 7 năm 2004), trải qua 10 năm hoạt động, các Luật sư chủ chốt của Công ty Luật Á Đông đã có một bề dày kinh nghiệm tư vấn trong lĩnh vực pháp luật đầu tư và pháp luật doanh nghiệp.

Bên cạnh những kinh nghiệm chuyên môn, các luật sư và chuyên viên pháp lý của Công ty Luật Á Đông luôn thấm nhuần cách nghĩ " Luật sư luôn là người bạn đồng hành mang lại sự yên tâm và an toàn cho doanh nghiệp trong các hoạt động kinh doanh ". Do vậy, trong quá trình cung cấp dịch vụ của mình, Công ty Luật Á Đông luôn được khách hàng đánh giá là một đơn vị tư vấn có đội ngũ nhân viên tận tâm...

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