Representative office form in Vietnam has allowed foreign entity to receive benefits such as recruiting Vietnamese employees, foreign employees working in offices whom could apply for work permit in Vietnamthen temporary residence card in Vietnamopening bank accounts in foreign currencies or Vietnam dong at commercial banks, and to be allowed to use those accounts solely for their operations.
Benefits of a representative business plan representative office vietnam Watch Kadri Lahi, country manager of Emerhub Vietnam, compare different legal entity types in Vietnam.
This relieves the foreign trader from advancing too much to achieve the purpose of expanding the market before the business plan has been proved to materialize. An RO must submit a written annual report on its operations of the preceding calendar year before the final working day of January.
Anything related to promoting the parent company is acceptable. Putting together initial team If you want to hire initial team in Vietnam before launching commercial operations then a representative office allows you to open bank account, hire both local and foreign employees and promote your company.
However, if the foreign trader has been established and operated legally in their country, the implementation of this provision is not a major obstacle. Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
In practice, the foreign entity is expected to provide audited financial statements. To get all your papers prepared legally correct and on a timely manner, fill in the form below or go to representative office registration page. Requisite Documentation An application dossier for obtaining the RO license has not changed under Decree 7 and continues to require the following: As a large potential market such a Vietnam, as well as the current rapid reform in administrative procedures, Vietnam Government has been more flexible to encourage foreign traders doing business in Vietnam, hence the establishment of representative offices is an optimal method to consider for market research, trade promotion and a stepping stone to penetrate the Vietnam market successfully.
In case the RO wants to transfer money abroad, it needs to give a reasonable purpose. Staffing — If the head of the representative office plans to leave Vietnam, he or she is required to appoint another individual to carry out his or her tasks during the planned absence.
What should be reported: Capital Unlike limited liability companies and joint-stock companies, a representative office does not have any capital requirements. Advantages of establishment of a representative office: Furthermore, ROs are strictly forbidden to issue invoices.
Tax and Reporting Similar to banking, tax and reporting regulation has seen little change under Decree 7.
Promote parent company Supervise the contract signing process with Vietnamese partners Your business line opportunities in Vietnam depend on the purpose it will serve.
The Vietnam Department of Trade and Commerce, which state authority would grand representative office operation certificate would require documents showing the 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.
Instead, setting up a company in Vietnam, an economic organization requires capital contribution as per business plan, ranging from USD 50 k to million USD.
The establishment of representative office in Vietnam turns out to be the most effective option both of cost and time. For the first time, foreign enterprises entering the Vietnam market, the primary purpose is understanding the market, undertaking research on clients, or due diligence on their business partners, distributors, monitoring the performance of buyers and being familiar with the Vietnam market.
For further information, please email vietnam dezshira.Benefits of Representative Offices in Vietnam Following the trend of international economic integration, foreigners have been attracted by the benefits of doing business in Vietnam through setting up representative office, setting up company, acquiring shares in Vietnam enterprise through M&A activity.
Introduced in January ofand effective from March 10th, Decree 7 is to become Vietnam’s guiding document for the interpretation of the current Commercial Law on Representative Offices (“RO”) and Branches of Foreign Business Entities in billsimas.com current and prospective investors, there are a few notable differences between Decree.
Business entities in Vietnam. Business entities in Vietnam. to setup such entity except in a very limited range of cases where this is the only legal solution for our Client’s business plan.
The Vietnam public limited company (JSC) While the Vietnam representative office can be % foreign owned, it is not allowed to pursue.
Donaldson Representative Office in Vietnam August – Present (7 years 1 month) Vietnam Donaldson Company, Inc., is a leading worldwide provider of filtration systems and replacement billsimas.com: Donaldson IAF Sales Engineer.
Opening a representative office in Vietnam Representative office allows a foreign company to have a presence in the market without having to incorporate a company. While easy to set up it also has some key restrictions such as it cannot conduct commercial activities.
Register a Representative Office in Vietnam Represent your company in Vietnam without setting up a Vietnamese company. Companies who plan to earn revenue or conduct commercial activities should consider registering a branch, Get A Quote For Your Representative office in Vietnam.Download