How to set up a Vietnam Representative Office easily?

If you’re thinking about growing your business in Vietnam, establishing a Representative Office (RO) can be a wonderful place to start. A RO acts as a liaison office and is not permitted to engage in commercial activity; yet, it can be a fantastic tool to explore a new market, perform research, and assess potential before forming a firm.

We’ll go over everything you need to know about establishing a Vietnam Representative Office in this article. We’ll go through the eligibility requirements, the RO’s rights and responsibilities, the licensing and post-licensing procedures, and what you need to do for the post-license process. Finally, we will talk about how we can assist you with your company’s secretarial and tax services.

Eligibility for setting up a representative office in Vietnam

Foreign enterprises that have been in existence for at least one year and have overseas operations are eligible to establish a Representative Office in Vietnam. The foreign company’s business domain or industry must be relevant to the industry of the desired Representative Office in Vietnam. The RO must be founded for market research, promotion, and other non-profit purposes. 

What are a Representative Office’s Rights and Obligations in Vietnam?

You are not permitted to engage in direct commercial activity as a Vietnam-based Representative Office. Instead, the office operates as a liaison for its parent corporation, conducting market research, attracting clients, and configuring projects. 

The RO can rent premises and make purchases for general charges, office equipment, and office supplies from its office. Similarly, if the parent business is no longer able to sponsor the RO, it can swiftly close it and notify the appropriate authorities.

What is the procedure and time frame for licensing? 

The licensing process takes around 15 working days from the date of receiving sufficiently required documents by  the Department of Industry and Trade (DOIT). The application contains:

• a legalized copy of letter of authorization from the head office
• a legalized copy of the parent company’s business registration certificate.
• an Audited financial report or Confirmation on tax/financial obligations implementation for the previous year or the like is mandatory.
• parent company’s articles of incorporation or equivalent documents (not mandatory)
• Decision of appointing Chief of Rep Office

What are the requirements for Post-license Procedure?

Following the acquisition of the RO license, the RO must undertake the following:

To complete the registration process, the RO must register for a tax code with the appropriate state agencies.

Opening a Bank Account: The RO can undertake transactions and cash handling with banks licensed to operate in Vietnam and retain accounts in VND.

Tax and Reporting responsibilities: Because the RO may incur tax liabilities, it must register for tax responsibilities, including personal income tax for RO workers. Monthly and quarterly reporting requirements are also required.

What are the costs of establishing a Vietnam Representative Office?  

Registration fees, office leasing prices, and other expenses linked to obtaining local licenses and permits are all part of the costs of establishing a Representative Office in Vietnam. The precise costs will vary based on the circumstances, such as the location of the office and the nature of the business activity.

How We Can Assist You – Company Secretarial & Taxation Service:

Even for organizations with prior experience growing into different areas, establishing a Representative Office can be time-consuming and complicated. Thus, enlisting the help of a professional team of professionals, such as a company secretary and a taxation services provider, may make the entire procedure more straightforward and stress-free.

Premia TNC provides our clients with Representative Office registration and tax services in Vietnam. Our local team of professionals can help you set up a Representative Office (RO) in Vietnam, making the procedure quick and easy. We provide a variety of services, such as company registration, obtaining local licenses and permits, opening bank accounts, and continuing company secretarial and taxation services to ensure your Representative Office complies with all legal requirements.

Our experienced team has considerable experience in company formation, taxation, and regulatory compliance. We are committed to offering personalized and professional services that are tailored to our client’s individual requirements. We can help you set up a Representative Office in Vietnam whether you are a small, medium, or large firm.

Let us handle the difficult aspects of establishing a Representative Office so you can focus on building your business in Vietnam. Contact us today to learn more about how our business secretarial and tax services might help you.

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