Consulting on establishing executive offices of foreign investors in BCC contracts

The establishment of the executive office of the foreign investor in the BCC contract creates favorable conditions for the implementation of investment projects in Vietnam. The executive office helps foreign investors effectively manage business operations, optimize resources and ensure compliance with Vietnamese law. Please follow Long Phan’s article for more detailed information about the process and how to establish an executive office for foreign investors in Vietnam.

Regulations on signing BCC contracts between domestic investors and foreign investors

Business cooperation contract (BCC) is a form of investment regulated in the Law on Investment 2020. According to Clause 14, Article 3 of the Law on Investment 2020, a BCC contract is an agreement between investors for business cooperation, dividing profits and products without establishing new economic organizations. This form allows foreign investors to cooperate with Vietnamese partners flexibly.

Article 28 of the Law on Investment 2020 regulates the main contents of the BCC contract. These contents include the following information:

• Names, addresses, and authorized representatives of the parties to the contract; transaction address or location of investment project implementation;
• Objectives and scope of business investment activities;
• Contributions of the parties to the contract and division of business investment results between the parties;
• Progress and deadline for contract implementation;
• Rights and obligations of the parties to the contract;
• Modification, transfer, and termination of contracts;
• Liability due to breach of contract, dispute resolution methods.

The signing of the BCC contract follows the principle of freedom of agreement within the framework of Vietnamese law. In addition, the parties can agree on additional terms as long as they do not violate current legal regulations. This creates flexibility for investors in building cooperative relationships suitable to project characteristics.

Can foreign investors in BCC contracts establish an executive office in Vietnam?

Article 49 of the Law on Investment 2020 regulates the right to establish an executive office of foreign investors in BCC contracts. Accordingly, foreign investors are allowed to establish an executive office in Vietnam to implement BCC contracts. The office location is decided by the investor based on the actual requirements of the project.

The executive office of the foreign investor has a seal. In addition, the office has the right to open bank accounts, recruit workers and sign contracts within the scope of activities specified in the BCC contract and Establishment Registration Certificate.

However, it should be noted that the scope of operations of the executive office is limited within the framework of rights and obligations specified in the BCC contract. This ensures compatibility between the office’s activities and the objectives and content of the investment project agreed between the parties.

Procedure for establishing an executive office of a foreign investor in a BCC contract in Vietnam

Prepared documents

Clause 4, Article 49 of the Law on Investment 2020 provides detailed regulations on registration documents to establish an executive office. The dossier includes the following documents:

• The registration document to establish an executive office includes: the name and address of the representative office in Vietnam (if any) of the foreign investor in the BCC contract; name and address of the executive office; content, duration, and scope of operations of the executive office; Full name, place of residence, ID card number, Citizen Identification card or Passport number of the head of the executive office;
• Decision of the foreign investor in the BCC contract on the establishment of an executive office;
• Copy of the decision to appoint the head of the executive office;
• Copy of BCC contract.

Full and accurate preparation of these documents helps the office establishment registration process go smoothly, avoiding delays due to missing documents.

Establishment process

The process for establishing an executive office is specified in Clause 3 and Clause 5, Article 49 of the Investment Law 2020. Specifically as follows:

Step 1: Submit the registration application

The foreign investor in the BCC contract submits an application to establish an executive office at the investment registration agency where the office is expected to be located. The investment registration agency is the Department of Planning and Investment of the province or centrally run city where the office is expected to be located.

Step 2: Appraisal and issuance of Certificate

Within 15 days from the date of receipt of valid documents according to regulations, the investment registration agency is responsible for appraising and issuing an executive office operation registration certificate to the foreign investor.

Consulting services and full support for procedures for establishing an executive office of foreign investors in BCC contracts

Establishing an executive office is an important step and following the correct procedures will help foreign investors optimize time, minimize legal risks and focus on core business activities. With strengths in the investment field, Long Phan is proud to provide comprehensive consulting services, support foreign investors throughout the establishment process and commit to providing the most useful and effective solutions for investors.

Comprehensive consulting and support at Long Phan includes the following services:

• Support in drafting and completing documents to establish an executive office of foreign investors in BCC contracts;
• Instructions on the order and procedures for establishing an executive office;
• Investor representatives work with competent state agencies;
• Monitor and expedite document processing progress;
• Consulting on further procedures such as registering a tax code and opening a bank account;
• Support investors throughout the operation of the executive office.

Establishing an executive office of a foreign investor in a BCC contract brings many benefits to foreign investors in Vietnam. The establishment process is clearly regulated, creating favorable conditions for businesses. To ensure the process goes smoothly and complies with the law, customers can consider using professional consulting services. Please contact Long Phan via hotline 0906735386 for dedicated support, to help you quickly realize your investment plan in Vietnam.