Consulting on establishing affiliated units for businesses in Long Phan

Article overview

Establishment of affiliated units help businesses expand their markets and develop their business in accordance with the law. Establishing a branch, representative office or business location helps businesses optimize resources, increase competitiveness and reach customers in many different geographical areas. Please follow Long Phan’s article to better understand the benefits and detailed procedures when establishing a subsidiary.

Instructions for establishing affiliated units for businesses
Instructions for establishing affiliated units for businesses

Regulations on affiliated units of enterprises

According to Article 44 of the Law on Enterprise 2020, businesses can establish affiliated units including branches, representative offices and business locations, each with separate roles and functions. Specifically:

  1. Branch:
  • As a dependent part of the enterprise;
  • Can undertake part or all of the functions of the business, including authorized representation rights;
  • The branch must operate in the registered business line of the enterprise.
  1. Representative office:
  • Is a dependent unit of the enterprise;
  • Have the duty of authorized representative to protect the interests of the business;
  • Representative offices are not allowed to engage in business activities.
  1. Business location
  • A place where businesses directly carry out specific business activities.

Procedures for establishing affiliated units for businesses

To establish these affiliated units, businesses need to carry out procedures according to relevant legal instructions. And the procedures for registering branch and representative office operations and notifying the establishment of business locations will be carried out in accordance with Article 31 of Decree 01/2021/ND-CP, as follows:

Procedures for registering operations of branches and representative offices in the country

Profile components

  1. Notice of establishment of a branch or representative office (according to the form Appendix II-7 of Circular 01/2021/TT-BKHDT) signed by the legal representative of the enterprise.
  2. Copies of resolutions, decisions and meeting minutes on the establishment:
  • For LLCs with two or more members and partnerships: of the Board of Members.
  • For joint stock companies: of the Board of Directors.
  1. Resolution and decision of the company owner on the establishment of branches and representative offices for one-member limited liability companies.
  2. Copies of personal legal documents for heads of branches and representative offices.
  3. Authorization document for the person to submit the application and receive results if not the legal representative. This document is not required to be notarized or authenticated (Clause 1, Article 12, Decree 01/2021/ND-CP).
  4. Copies of personal legal documents for the person authorized to carry out the procedure (if any).
  5. Personal legal documents include:
  • For Vietnamese citizens: Citizen identification card or ID card or valid Vietnamese Passport.
  • For foreigners: Foreign passport or valid document replacing a valid foreign passport.

Place to submit application

  • Business Registration Office under the Department of Planning and Investment where the branch or representative office is located.

Resolution deadline

  • Within 03 working days from receipt of valid documents, the Business Registration Office will issue a Certificate of registration of branch and representative office operations.
  • If the dossier is not valid, the agency will notify you in writing of the content that needs to be amended or supplemented.

Note:

  • Enterprises operating under an Investment License or Investment Certificate need to comply with the representative office operation registration process according to Article 97 of Decree 01/2021/ND-CP.

Procedures for establishing branches and representative offices abroad

Profile components:

  1. Notice of establishment of branches and representative offices (according to form Appendix II-8 Circular 01/2021/TT-BKHDT).
  2. Copy of Certificate of registration of branch or representative office operations or equivalent documents.
  3. Authorization document for the applicant (if not the legal representative) and does not require notarization or authentication.
  4. Copy of personal legal documents of the authorized person (if any):
  • Vietnamese citizens: Citizen identification card, Identity card, or Vietnamese Passport.
  • Foreigners: Passport or other valid documents.

Place to submit application

  • The Business Registration Office belongs to the Department of Planning and Investment where the enterprise is headquartered.

Deadline and implementation steps

  • When carrying out procedures to establish a branch or representative office of an enterprise in a foreign country, it will comply with the provisions of that country’s law. And within 30 days from the date of officially establishing a branch or representative office abroad; Enterprises will have to carry out notification procedures to the domestic business registration agency.
  • Within 03 working days of receiving the notification, the Business Registration Office will update information about the branch or representative office into the National Business Registration Database.

Procedures for notification of establishment of business location

Profile components

  1. Notice of establishment of branches and representative offices (according to form Appendix II-7 Circular 01/2021/TT-BKHDT).
  • Business location of the enterprise: Signed by the legal representative.
  • Business location of the branch: Signed by the head of the branch.
  1. Authorization document (if the applicant is not a legal representative).
  2. Copies of personal legal documents for the person authorized to carry out the procedure (if any). Specifically:
  • Vietnamese citizens: Citizen identification card, Identity card, or Vietnamese Passport.
  • Foreigners: Passport or other valid documents.

Place to submit application

  • Within 10 days from the date of decision to establish a business location, the enterprise sends a notice to the Business Registration Office where the location is located.

Resolution deadline

  • Within 03 working days from receipt of valid documents, the Business Registration Office will update information about business locations into the National Database.
  • If necessary, businesses can request a Business Location Registration Certificate.

Note

  • Enterprises operating under Investment Licenses or documents of equivalent value also need to comply with the representative office registration process according to Article 97 of Decree 01/2021/ND-CP.
Current regulations on affiliated units
Current regulations on affiliated units

Benefits when using the service of establishing affiliated units for businesses in Long Phan

Long Phan provides comprehensive solutions for businesses in establishing branches, representative offices and business locations with the following specific benefits:

  • In-depth consulting: Long Phan provides detailed analysis and advice on organizational models suitable for the business’s development strategy.
  • Fast and effective process: Closed document processing service, from drafting to submission and tracking, helps shorten time and ensure proper implementation of procedures.
  • Comprehensive support after establishment: After completing procedures, Long Phan continues to support businesses with issues that arise.
  • Transparent costs: Commitment to reasonable service fees with detailed quotes, no additional costs beyond the agreement, helping businesses easily manage their budget.
  • Continuous support: Long Phan accompanies businesses throughout their operations, supports business registration changes and resolves arising problems.
  • Enhance management efficiency: Establishing affiliated units helps improve organizational and management structure, thereby improving the operational efficiency of the enterprise.
  • Ensuring safety: With professional support, businesses will minimize risks, thereby focusing on business development.
Benefits when you use Long Phan's services
Benefits when you use Long Phan’s services

The scope of services we bring to our customers

With rich experience and extensive understanding of business law, Long Phan is confident to bring optimal solutions to your business. And Long Phan’s professional and comprehensive services include:

  • Consulting on business establishment and carrying out full establishment procedures.
  • Consulting on establishing affiliated units to assist in preparing documents and carrying out registration procedures.
  • Consulting on industry conditions, preparing documents and submitting them to the authorities.
  • Consulting on changing business registration from preparing documents and implementing change procedures.
  • Consulting and supporting corporate law compliance, dispute resolution and contract consulting.
  • Assist customers in drafting and preparing necessary documents.
  • Representing customers to carry out procedures at competent agencies.

Establishing a subsidiary for a business is a strategic step in the process of developing and expanding business activities. With a team of experienced experts, Long Phan will provide customers with comprehensive solutions regarding professional processes and reasonable costs. If you need advice, please contact Long Phan via hotline 0906735386 for the fastest and most effective support.