Establishment of foreign representative offices in VN
The Government has recently issued Decree 07/2016/ND-CP, guiding the implementation of the Commercial Law 2005 on the establishment of Viet Nam-based foreign representative offices and branches.
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Under the newly-approved decree, foreign traders are allowed to establish their representative offices and branches in accordance with Viet Nam’s commitments to international treaties.
A foreign trader is prohibited from forming more than one foreign representative and branch with a similar name in a province or a city.
Five conditions for representative office establishment
1. Foreign traders are allowed to found and register their business in accordance with laws of countries and territories joining international treaties which Viet Nam is a signatory to or was recognized by their countries or territories.
2. Foreign traders must operate at least one year since the day of establishment or registration.
3. Their business registration papers or equivalent documents must have at least one year of validity since their dossier was submitted.
4. Operation activities of representative offices have to comply with commitments to international treaties to which Viet Nam is a signatory.
5. In case that the operation scopes of foreign representative offices are inappropriate with Viet Nam’s commitments or foreign traders do not come from countries and territories which do not join the same international treaties, the establishment of foreign representative offices must get permission of the relevant ministers or ministerial-level leaders.
Five conditions for the founding of branches
1. Foreign traders are allowed to found and register their business in accordance with laws of countries and territories joining international treaties which Viet Nam is a signatory to or was recognized by their countries or territories.
2. Foreign traders must operate at least five years since the day of establishment or registration.
3. Their business registration papers or equivalent documents must have at least one year of validity since the day of dossier submission.
4. Operation activities of representative offices have to comply with commitments to international treaties to which Viet Nam is a signatory and the business line of foreign traders.
5. In case that the operation scopes of foreign representative offices are inappropriate with Viet Nam’s commitments or foreign traders do not come from countries and territories which do not join the same international treaties, the establishment of foreign branches must get permission from the relevant ministers or ministerial-level leaders.
The establishment license granted to Viet Nam-based foreign representative offices and branches is valid for five years. It does not exceed the duration mentioned in foreign traders’ business registration licenses or equivalent documents if these papers bear regulations on time limit./.
source: Chinhphu.vn
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