5 minutes Establishing a Representative Office in Vietnam Made Easy for Indian Companies
As Indian businesses look beyond borders to expand their global footprint, Vietnam stands out as a destination filled with opportunity. With its steady economic growth, investor-friendly policies, and strengthening ties with India, Vietnam is becoming a top choice for Indian entrepreneurs eyeing Southeast Asia.
For companies looking to test the waters before entering into full-scale operations, establishing a Representative Office (RO) offers an ideal, low-risk pathway. It allows foreign firms to build connections, conduct research, and gain local insight — without carrying out any revenue-generating business activities.
Why Indian Companies Are Choosing Vietnam
Vietnam offers a compelling mix of market potential and operational ease:
- Geographical Advantage: Located in the heart of Southeast Asia, Vietnam provides excellent access to regional trade routes and neighboring economies like China, Thailand, and Laos.
- India-Vietnam Trade Momentum: Trade relations between India and Vietnam are gaining strong momentum, with projections indicating that the two nations could exceed USD 20 billion in bilateral trade in the near future.
- Pro-Business Reforms: Streamlined regulatory processes, growing industrial zones, and a young, tech-savvy workforce make Vietnam a business-friendly location.
- Trade Agreement Benefits: Vietnam’s participation in FTAs like RCEP, CPTPP, and EVFTA allows businesses to access international markets with reduced tariffs.
- Affordable Operations: Vietnam offers lower costs of living, labor, and logistics compared to many neighboring countries — making it a cost-efficient expansion destination.
What is a Representative Office in Vietnam?
A Representative Office is a foreign entity’s legal presence in Vietnam that enables market research, liaison activities, and brand development — without participating in profit-making operations. For Indian businesses, this is a practical first step to evaluate market conditions and build relationships before launching commercial activities.
Typical functions of an RO include:
- Gathering industry and consumer insights
- Building partnerships and supplier networks
- Promoting the parent company’s products and services
- Acting as a communication bridge between Vietnam and the head office
- Observing and supporting contract implementation
This structure provides Indian companies with flexibility and exposure without the responsibilities that come with direct trade or investment.
Why It Works for Indian Business Owners
Here’s why Indian entrepreneurs are leveraging Representative Offices as their entry strategy into Vietnam:
- Low-Risk Market Entry – It allows companies to study the landscape without committing capital to commercial operations.
- Faster Setup Process – Compared to establishing a subsidiary or joint venture, setting up an RO involves simpler procedures.
- Brand Positioning – Helps establish local credibility and visibility while laying the foundation for future expansion.
- Cost-Effective Structure – No need for large teams or production setups; expenses remain minimal.
- Scalable Approach – Once the market potential is confirmed, businesses can scale up to a full legal entity.
Eligibility to Open a Representative Office
Indian companies are eligible to open an RO in Vietnam if:
- The company is legally registered in India and has been operational for at least one year.
- The business scope in Vietnam aligns with the activities of the Indian parent company.
- The company agrees to operate within non-commercial functions only — such as research, promotion, and communication.
Essential Documentation
To complete the RO registration, the following documents are needed:
- Duly filled application form from Vietnam’s Department of Industry and Trade (DOIT)
- A legally certified and Vietnamese-translated copy of the Indian parent company’s incorporation certificate or business registration document
- Certified financial records or a banking confirmation to establish the parent company’s financial health
- Valid passport copy of the appointed Chief Representative (or local ID if a Vietnamese national is assigned)
- A signed commercial office lease agreement in Vietnam
- Power of attorney authorizing the Chief Representative to act on behalf of the company
All foreign documents must be translated into Vietnamese, notarized, and consular legalized for use in Vietnam.
Step-by-Step Process to Establish a Representative Office
Follow this streamlined process to set up your RO in Vietnam:
Step 1: Document Preparation
Gather and legalize all necessary documents, including notarization and consular legalization via the Vietnamese Embassy in India.
Step 2: Choose a Physical Office Space
Sign a lease agreement for an official business address in Vietnam — this is a mandatory requirement.
Step 3: Appoint a Chief Representative
Assign an individual (either Indian or Vietnamese) to legally represent the RO and act as its point of contact in Vietnam.
Step 4: Submit Your Application
Submit the full documentation to the relevant DOIT office in the city where the RO will be located (e.g., Hanoi, Ho Chi Minh City).
Step 5: Obtain the License
After review, the RO license is typically issued within 7 to 15 working days, depending on the completeness of your submission.
Step 6: Complete Post-License Formalities
Once licensed, the following steps are required:
- Register your official seal (if applicable)
- Open a corporate account with a Vietnamese bank to facilitate ongoing office-related expenses
- Register with the local tax authority for reporting purposes
- Submit your initial activity declaration to local authorities
Key Rules and Considerations
- Non-Commercial Scope
A Representative Office in Vietnam is strictly limited to non-revenue activities and is not authorized to engage in the sale of goods or services. - Annual Activity Reporting
ROs must submit a yearly operational report to the local Department of Industry and Trade. - Validity Period
The Representative Office license is generally issued with a five-year term, after which it can be extended upon meeting renewal conditions. - Work Visa and Permits
If the appointed Chief Representative is an Indian national, they may need a work permit or business visa, depending on their responsibilities and length of stay. - Limited Tax Responsibilities
Since ROs don’t generate income, there are no corporate income taxes involved — but basic reporting and expense declarations are still required.
When You’re Ready to Scale
After assessing the market and establishing networks, Indian companies often convert their RO into a more operational entity such as:
- A 100% Foreign-Owned Company (Limited Liability Company)
- A Joint Venture Company with local partners
- A Branch Office for more direct operations
This transition allows you to start trading, invoicing, and hiring on a larger scale — paving the way for long-term success in Vietnam.
How Premia TNC Helps Indian Businesses Expand
At Premia TNC, we support Indian entrepreneurs in setting up a Representative Office in Vietnam efficiently and legally. From document handling to liaising with government departments, we manage every detail so you can focus on your business goals.
Our Vietnam RO services include:
- Legal documentation and translation support
- Office lease arrangement and address setup
- Appointment of Chief Representative
- License application and post-registration compliance
- Ongoing consultation for business upgrades and expansion
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