Sample license for foreign representative office in Vietnam

Article overview

License for foreign representative office in Vietnam is an important legal document, allowing foreign businesses to establish presence and operations in the Vietnamese market. However, to establish a representative office in Vietnam, traders need to comply with regulations and procedures and necessary documents. In the following article, Long Phan will inform customers about the regulations, as well as the sample license for foreign representative offices in Vietnam.

License for foreign representative office in Vietnam
License for foreign representative office in Vietnam

Conditions for granting foreign representative office licenses in Vietnam

According to the provisions of Article 7 of Decree 07/2016/ND-CP, foreign traders must meet the following conditions to be granted a license:

  • Legal establishment: Traders must be established and registered for business according to the regulations of the country or territory participating in international treaties to which Vietnam is a member, or recognized by Vietnamese law.
  • Minimum operating time: Foreign traders must operate for at least 1 year from the date of establishment or business registration.
  • Business registration term: If the operating license has a term, the remaining time must be at least 1 year from the date of application submission in Vietnam.
  • Consistent with international treaties: Representative office operations must be consistent with international commitments that Vietnam participates in.
  • Approval from the specialized management ministry: If the representative office’s activities are not included in Vietnam’s international commitments or the trader belongs to a country that has not signed an international treaty with Vietnam, approval is required of the Ministry of specialized management.

Procedures for licensing foreign representative offices in Vietnam

Application for License

According to Article 10 of Decree 07/2016/ND-CP, the application file includes:

  • License application: according to Model MD-1 in the appendix issued with Circular 11/2016/TT-BCT, signed by the representative of the foreign trader.
  • Business registration certificate or equivalent document: Certified copy of the Vietnamese diplomatic mission or consular legalization.
  • Decision to appoint the head of the representative office: Documents of the foreign trader on the appointment of the representative of the office.
  • Audited financial statements or equivalent documents: Documents confirming the trader’s financial obligations and financial situation in the most recent financial year.
  • Copy of passport or identification documents of the head: For Vietnamese or foreigners heading the representative office.
  • Documents about the proposed location: Including the location rental contract or documents proving the right to use the location.

Procedure for granting a License

The licensing process according to Article 11 of Decree 07/2016/ND-CP includes the following steps:

  • Submit application: Traders submit application by post or directly to the licensing agency.
  • Receiving documents: Within 3 working days, the agency will check the documents and request additional information if necessary.
  • Processing documents: Within 7 working days after the documents are complete, the agency will issue or deny the license. If refused, a written reason is required.
  • Obtain opinions from specialized management ministries: If necessary, the licensing agency will seek opinions from specialized management ministries within 3 working days.
  • Return results: After receiving comments, within 5 working days, the licensing agency will make a decision to grant or deny the license.
Procedures for granting a License to establish representative offices of foreign traders
Procedures for granting a License to establish representative offices of foreign traders

Sample license for foreign representative office in Vietnam

The license to establish representative offices for foreign traders in Vietnam is issued according to Form GP-1, issued together with Circular 11/2016/TT-BCT. This license form ensures legality, consistency, and transparency in the operations of representative offices in Vietnam. Below is a detailed analysis of the important components and content in the form of License to establish a Foreign Representative Office:

Information about the Licensing Agency

  • Name of licensing agency: This is information about the licensing agency, usually the Department of Industry and Trade of the province/city where the representative office is expected to be located.
  • Code and contact address: The licensing agency’s code and contact information are clearly stated, helping to determine the authority and official address to contact when confirmation or additional information is needed.

Information of Foreign Traders

  • Name of foreign trader: Write the official name according to the business registration certificate, can be in a foreign language and transliterated or translated into Vietnamese if necessary.
  • Registered address: Includes the address of the trader’s headquarters abroad, to identify the facility and country where the trader is established.
  • Business registration certificate: The number and date of issue of the business registration certificate or equivalent document is provided to prove the legality and existence of the trader according to foreign laws.

Information about representative office in Vietnam

  • Representative office name: Official name of the representative office registered in Vietnam, can be the name of the foreign trader with the phrase “Representative office in Vietnam” to avoid confusion and comply with regulations.
  • Representative office headquarters address: Specific address in Vietnam, registered for lease by the trader or has legal rights to use, ensuring the office operates at this location during the validity period of the license.
  • Head of representative office: Name and information of the person appointed by the foreign trader to manage the office in Vietnam. This person has an important legal role and must ensure authority and responsibility in the operations of the representative office.

Scope of operation of Representative Office

  • Activity content: Representative office activities must be consistent with the function of monitoring and coordinating commercial activities of foreign traders in Vietnam. Representative offices may not conduct direct business activities such as sales or services.
  • Commitment to compliance: The representative office’s operational content must comply with international trade regulations, in accordance with international treaties to which Vietnam is a member, and at the same time meet the requirements of the regulatory management agency in Vietnam.

License Term

  • Validity period: A license to establish a representative office is usually valid for 1 to 5 years, depending on the requirements of the foreign trader and the regulations of the licensing agency. After expiration, traders can apply for an extension if all conditions are met.
  • Conditions for extension or termination: The license form also includes provisions on the extension, termination or revocation of the license in case the trader violates Vietnamese law or fails to meet the conditions for continued operation.

Legal terms and compliance obligations

  • Commitment to comply with Vietnamese law: Foreign traders commit that the representative office will comply with labor regulations, taxes, financial reporting and other requirements of Vietnamese law during its operation.
  • Reporting responsibilities: Representative offices must periodically report and comply with reporting requirements on operational status, changes in head or office location, if any, to the regulatory authority in Vietnam.

Rights and obligations of Representative Offices

  • Powers of representative office: The license form clearly stipulates the rights of the representative office within the permitted scope, including the right to contact and work with partners in Vietnam, the right to supervise the commercial contracts of the parent company.
  • Operational limitations: Representative offices are not allowed to conduct commercial transactions or sign independent business contracts. Any activities beyond the scope must be approved or performed through the foreign parent company.
Sample of Foreign Representative Office License in Vietnam
Sample of Foreign Representative Office License in Vietnam

Consulting services and guidance on foreign representative office license samples in Vietnam

Consulting services to support foreign traders on the process, documents and conditions for licensing foreign representative offices in Vietnam play an important role in ensuring compliance with legal regulations in Vietnam. Long Phan provides detailed consulting services including:

  • Provide information on regulations related to the establishment of representative offices.
  • Support customers in preparing necessary documents and records to apply for a license.
  • On behalf of customers, work with state agencies to submit applications and monitor the licensing process.
  • Provide information on tax and financial obligations related to representative office operations in Vietnam.
  • Providing consulting services on legal obligations and periodic reporting after the office is licensed.

The foreign representative office license form in Vietnam plays an important role in helping foreign businesses access the Vietnamese market. Mastering the licensing process will help optimize operations and take advantage of business opportunities. If you need to establish a representative office, please contact Long Phan via the hotline: 0906735386 for effective support.