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Conditions for establishing a representative office of foreign traders
Foreign traders must satisfy the conditions for the grant of a representative office establishment license as prescribed in Article 7, Decree No. 07/2016/ND-CP as follows:
1- The foreign trader has been established or has registered its operation under the law of a country or territory being a member to a treaty to which Vietnam is a contracting party or recognized by the law of such country or territory.
2 - The foreign trader has been operating for at least one year since its establishment or business registration
3- In case the foreign trader’s business registration certificate or equivalent paper indicates its term of operation, the remaining term must be at least one year by the date of submission of the application.
4- Contents of the operation of the representative office must comply with Vietnam’s commitments in treaties to which Vietnam is a contracting party.
Note: In case the contents of operation of the representative office are not located in a country or territory being a member of a treaty to which Vietnam is a contracting party, the establishment of such representative office shall be approved by the minister of the ministry or the head of the ministerial level agency performing the specialized management of the sector.
Procedure for establishing a representative office of foreign traders
Pursuant to the Article 10, Article 11 of the Decree 76/2016 of the Government, Circular No. 11/2016/TT-BCT, foreign traders must make the process and procedure for establishing representative office as follows:
Step 1: A dossier shall be made in one set, comprising:
- An application for a representative office establishment license, made according to a form MD-1 issued with the Circular No. 11/2016/TT-BCT;
- A copy of the business registration certificate or equivalent paper of the foreign trader;
- The foreign trader’s document on appointment of head of the representative office;
- A copy of the passport, people’ identity card or citizen’s identity card (for a Vietnamese) or a copy of the passport (for a foreigner) of the head of the representative office;
- Copies of audited financial statements or documents proving the fulfillment of tax liabilities or financial obligations in the latest fiscal year or equivalent paper issued or certified by a competent agency or organization of the locality where the foreign trader was established proving the actual existence and operation of the foreign trader in the latest fiscal year;
- A copy of the memo of understanding or location rental agreement or a document proving the right to use the location for opening the representative office;
- A copy of the document on the expected location of the representative office under Article 28 of this Decree and relevant laws.
Note: A representative office or branch must not lend or sub-lease its office.
Step 2: Foreign traders or representatives submit the application to the provincial-level Industry and Trade Department or the management board of an industrial park, export-processing zone, economic zone or hi-tech park of a locality in which the representative office is scheduled to be located as follows:
- Submitting the dossier directly;
- By post;
- By online via the National Business Registration Portal. (Foreign traders in Hanoi, Ho Chi Minh city are compulsory to follow this form).
Step 3: Receiving and handling of the dossier.
Step 4: Return the result
Within 7 working days after receiving a complete and valid dossier, the licensing agency shall grant to the foreign trader a representative office establishment license or refuse to grant it. In case of refusal, the licensing agency shall issue a document clearly stating the reason.
Within 3 working days after receiving a complete and valid dossier, the licensing agency shall send a written request to the concerned line ministry for opinion
Within 5 working days after receiving the request of the licensing agency, the line ministry shall issue a document stating its opinion on the grant of the license.
Within 5 working days after receiving the line ministry’s reply, the licensing agency shall grant to the foreign trader a representative office establishment license or refuse to grant it. In case of refusal, the licensing agency shall issue a document clearly stating the reason.
* Fee: VND 50,000/time (Circular No. 47/2019/TT-BTC).
Here is the procedure for establishing a representative office of a foreign trader.
