License to operate representative office foreign trader is an important legal document, allowing foreign businesses to establish dependent units in Vietnam. This document is issued by the Ministry of Industry and Trade or a competent agency, clearly defining the terms, rights and obligations of the representative office. The licensing process requires careful preparation of registration documents and compliance with strict procedures. In the following article, Long Phan will analyze in detail the issues related to the above content.

Things to know about representative offices of foreign traders

According to the provisions of Clause 6, Article 3 of the Commercial Law 2005, representative offices of foreign traders are dependent units of foreign traders in Vietnam. This unit was established according to Vietnamese law to explore the market and carry out a number of permitted trade promotion activities.

According to the provisions of Article 9 of Decree 07/2016/ND-CP, the maximum operating term of a foreign trader representative office is 5 years from the date of issuance of the Establishment License and can be extended many times. times, each time not exceeding 5 years. To be licensed, foreign traders must meet the conditions of operating in a foreign country for at least 1 year from the date of establishment or registration.

The scope of operation of a representative office is limited to:

• Perform liaison office functions
• Conduct trade promotion within the permitted scope
• Research the Vietnamese market to support the operations of foreign traders

Representative offices do not have legal status and are not allowed to conduct direct profit-making activities, sign commercial contracts or carry out commercial transactions. All activities must comply with Vietnamese laws and the content of the License issued.

Rights and obligations of foreign trader representative offices

The rights and obligations of representative offices of foreign traders are specifically stipulated in Articles 17 and 18 of the Commercial Law 2005. These regulations are intended to ensure that the operations of representative offices comply with Vietnamese law and serve the purpose of its establishment.

Regarding powers, representative offices are allowed to:

• Operate in accordance with the purpose, scope and duration specified in the license
• Rent headquarters, purchase vehicles to serve operations
• Recruit Vietnamese and foreign workers according to regulations
• Open a foreign currency or VND account in foreign currency at an authorized bank
• Has its own seal according to legal regulations
• Exercise other rights according to regulations

Regarding obligations, representative offices must:

• Do not conduct direct profit-making activities in Vietnam
• Only carry out authorized trade promotion activities
• It is not allowed to sign, amend or supplement contracts on behalf of foreign traders
• Pay taxes, fees, charges and fulfill financial obligations according to regulations
• Report activities periodically to state management agencies
• Comply with other obligations according to legal regulations

Strict compliance with these rights and obligations helps the representative office operate effectively, for the right purpose and avoid violating Vietnamese law.

Procedures for applying for a License to operate representative office foreign trader

Prepared documents

To apply for a License to operate representative office foreign trader, foreign traders need to prepare complete documents as prescribed in Article 10 of Decree 07/2016/ND-CP. Document preparation needs to strictly comply with the requirements regarding composition, quantity and legality of each type of document.

License application dossier includes:

• Application for a License according to the prescribed form;
• Business registration certificate of foreign traders (consular legalization);
• Document nominating/appointing Head of representative office (notarized translation);
• Documents proving the trader’s activities in the most recent financial year;
• Personal identification documents of the Head of representative office;
• Documents on the expected location of the representative office;
• Authorization document and documents of the person authorized to submit the application (if any).

Documents in foreign languages ​​must be translated into Vietnamese and notarized and consular legalized according to regulations. Documents need to be prepared in 01 set and submitted directly or by mail to the competent authority.

Competent authority

Identifying the correct licensing authority is an important step in the process of applying for a representative office establishment license. According to Article 5 of Decree 07/2016/ND-CP, the competent authority is determined based on the expected location of the representative office.

Specifically:

• If the representative office is located in an industrial park, export processing zone, economic zone, or high-tech zone: the Management Board of industrial zones, export processing zones, economic zones, and high-tech zones has the authority to grant licenses.
• If the representative office is located outside the above areas: the Department of Industry and Trade of the province/city where the office is located has licensing authority.

Submitting documents to the correct competent authority helps process documents quickly, avoiding the situation of transferring documents back and forth between agencies, causing unnecessary time and expense.

Foreign traders need to carefully study the regulations and contact local competent authorities directly for detailed instructions on procedures to avoid errors during the application process.

Sequence of implementation procedures

The process of granting a License to operate representative office foreign trader is carried out in a strict order, ensuring transparency and efficiency. According to Article 11 of Decree 07/2016/ND-CP, the process includes the following main steps:

Step 1: Submit application

• Foreign traders submit applications directly, online or by post to the competent authority.
• The receiving agency checks the completeness and validity of the dossier.

Step 2: Process documents

• Within 3 working days, the competent authority will notify additional requests if the dossier is incomplete.
• Traders can only supplement their profile once.

Step 3: Licensing

• Within 7 working days from the date of receipt of complete and valid documents, the competent authority will issue a decision to grant or refuse to grant a license.
• In case of refusal, there must be a written statement clearly stating the reason.

Special cases:

• If the content of activities does not comply with international commitments or the trader belongs to a country that has not signed a treaty with Vietnam, the licensing agency must seek advice from the specialized management ministry.
• Processing time may be extended by up to 13 business days.

Complying with the prescribed order, procedures and deadlines helps the licensing process go smoothly, ensuring the rights of foreign traders and efficiency in state management.

Consulting services and support procedures for applying for a License to operate representative office foreign trader in Long Phan

Long Phan provides professional consulting services and comprehensive support for the process of applying for a License to operate representative office foreign trader. Our team of experienced lawyers will guide you step by step, ensuring complete, accurate documents and a quick process. Our consulting and support services include:

• Consulting on conditions, rights and obligations of representative offices
• Support in preparing complete and accurate documents according to regulations
• Contact representative and submit documents to the competent authority
• Monitor application processing progress
• Support explanations and additional documents when necessary
• Consulting on issues arising during the licensing process

The process of applying for a License to operate representative office foreign trader requires careful preparation and understanding of the law. Long Phan is committed to supporting customers throughout this process, from consulting on conditions to completing documents and monitoring the approval process. For detailed advice, please contact the hotline 0906735386 for advice and support.