How to register to establish an independent accounting branch

Article overview

An independent accounting branch is a flexible financial management model, helping businesses allocate resources effectively and optimize cost control processes. Establishing an independent accounting branch not only brings initiative in financial management but also helps businesses improve their ability to control risks. The article below will provide information on how to register to establish an independent accounting branch to help businesses achieve the highest efficiency.

Establishment of an independent accounting branch
Establishment of an independent accounting branch

What is an independent accounting branch?

An independent accounting branch is a dependent unit of an enterprise that is allowed financial autonomy and has the right to open its own account. This unit can perform all or part of the business’s functions as authorized. Independent accounting branches have autonomy in recording and monitoring arising economic transactions.

Independent accounting branches have the following main characteristics:

  • Be granted a separate tax code;
  • Has its own seal;
  • Open an independent bank account;
  • Self-declaration and finalization of taxes;
  • Prepare separate financial reports;
  • Can be headquartered in a province/city different from the head office.

Pursuant to Article 44 of the Law on Enterprises 2020, the branch must ensure that business activities are consistent with the registered profession of the host enterprise. The branch can perform the authorized representative function of the enterprise within its assigned scope.

 Current regulations on branch establishment
Current regulations on branch establishment

Procedures for registering to establish independent accounting branches for domestic enterprises

Profile components

To register to establish an independent accounting branch, businesses need to prepare documents as prescribed in Article 31 of Decree 01/2021/ND-CP, including:

  • Notice of establishment of a branch or representative office signed by the legal representative of the enterprise.
  • Copies of resolutions, decisions and meeting minutes: For limited liability companies with two or more members, partnerships, there must be resolutions, decisions and meeting minutes of the Board of Members. For joint stock companies, there must be resolutions and decisions of the Board of Directors.
  • For a one-member limited liability company: There must be a resolution or decision of the company owner on the establishment of a branch or representative office.
  • Personal legal documents: Provide copies of legal documents of the head of the branch or representative office.

Implementation process

The registration process for establishing an independent accounting branch is carried out according to the following steps:

Step 1: Submit application at the Business Registration Office where the branch is located

  • Submit via direct method;
  • Submit via online method;
  • Submitted via postal and telecommunications services.

Step 2: Document appraisal:

Within 03 working days from the date of receipt of the dossier, the Business Registration Authority is responsible for reviewing the validity of the dossier and issuing the Branch and Representative Office Operation Registration Certificate.

  • In case the dossier is not valid, the Business Registration Authority must notify the enterprise in writing of the content that needs to be amended or supplemented;
  • In case of refusal to issue a branch or representative office operation registration certificate, the enterprise must be notified in writing and clearly state the reason.

Step 3: Change GCN content:

Enterprises are responsible for registering changes to the content of the Certificate of registration of branch and representative office operations within 10 days from the date of change;

Step 4: Notify business location:

Within 10 days from the date of deciding on the business location, the enterprise shall notify the business location to the Business Registration Authority.

CSPL: Article 45 of the Law on Enterprise 2020.

Things to keep in mind when establishing an independent accounting branch

When establishing an independent accounting branch, businesses need to pay special attention to the following issues:

Legal conditions and establishment procedures:

  • Enterprises need to prepare complete documents, including resolutions and decisions of the Board of Directors (or owners) on establishing a branch.
  • It is necessary to register with the competent state management agency (Department of Planning and Investment) and register a tax code for the branch.

Independent accounting:

  • Independent accounting branches must have a separate accounting system, separate from the parent company. This helps the branch manage finances, report taxes and perform financial obligations independently.
  • It is necessary to build an accounting software system and qualified personnel to manage financial operations and complete and accurate tax reports.

Organizational structure and personnel:

  • Enterprises must appoint a branch leader who is responsible for operating the branch’s operations and managing finances.
  • It is necessary to ensure enough staff with accounting and financial expertise to carry out independent accounting work.

Management and control:

  • Branches need to conduct periodic financial reports and audits to ensure transparency and compliance with regulations.
  • The parent company needs to have a mechanism to monitor and check the financial activities of the branch to avoid errors and fraud.

Comply with tax and legal regulations:

  • Independent accounting branches must perform tax obligations as an independent organization, including corporate income tax, VAT and other taxes.
  • Businesses need to pay attention to regulations on transfer pricing and reasonable costs between branches and parent companies.

Charter capital and finance:

  • Branches need to have enough capital to operate, which can be charter capital or capital from the parent company. There must be reasonable capital allocation to ensure the branch’s business operations run smoothly.
  • There needs to be a clear financial mechanism to divide profits and risks between the branch and the parent company.

Rights and obligations of branches:

  • Branches have the right to carry out transactions, sign contracts and conduct business activities within the scope authorized by the parent company.
  • However, branches are also obliged to comply with legal regulations on business activities and report to the parent company.
Some issues to note
Some issues to note

Consulting services and instructions on how to register to establish an independent accounting branch

Choosing to use consulting and support services will ensure that the process of establishing an independent accounting branch goes smoothly. At Long Phan, with a team of experienced experts, we provide support services. specialized.

The services we provide include:

  • Consulting on choosing the right branch type to suit customer needs;
  • Guide and support customers in preparing documents according to current regulations;
  • Drafting necessary documents and forms to carry out branch registration procedures;
  • Representative to carry out registration procedures at a competent state agency;
  • Support post-registration procedures (seal engraving, account opening, tax code registration).

Establishing an independent accounting branch is a process that requires strict compliance with current regulations. To ensure the establishment process goes smoothly and according to regulations, customers can immediately contact our team of consulting experts via the hotline: 0906735386. We will provide detailed instructions on procedures, support in completing documents and help you successfully take the necessary steps to put the branch into effective operation.