22 Aug Compliance Procedures For License Of Foreign Representative Office In Vietnam
Although a representative can enhance and support business development for parent company, easy to manage and able to keep investor away from many potential risks of violating local compliance procedures: no add valued tax, no corporate income tax, no accounting books, no financial statement, no independent audit required… but, in fact that there are many representative offices have endured serious fines due to misconduct of compliance procedures.
1. Extension the representative office license:
Other than cases be revoked such as:
- Fail to come into operation for 1 year and fail to enter into transactions with licensing agencies.
- Fail to submit reports on the operation of the representative office for 02 consecutive years.
- Fail to submit annual reports to the licensing agency within 6 months from the deadline of submission or at the written request of the licensing agency.
Every office shall be eligible for the grant of extension of the license of establishment of the representative office.
There are many reasons may trouble you to extend the license properly, and you should prepare in advance at least 03 months. It would take time to prepare for the papers and dossiers for the extension. Moreover, the officers will audit your previous operations, tax declaration and settlement and other condition before making decision on if your office extended or not, new period will be 1 years or 5 years…
2. Amend information on a?representative office?license:
When foreign traders or foreign representative offices operating in Vietnam change information, it is necessary to comply with some regulations of state agencies as follows:
* Cases need to be notified:
Foreign traders must carry out procedures for adjusting licenses of representative office in the following cases:
- Change the name of the foreign trader;
- Changing the address of the foreign business entity;
- Change the chief of the representative office;
- Change the name of the representative office;
- Changing of operation contents of the representative office;
- Changing of address of the representative office;
* Dossier of license adjustment:
In case of change, the foreign trader shall prepare one (01) dossier set, including:
Documents evidencing the change, specifically:
- A copy of the legal document issued by a competent authority, proof of change of name or address of the foreign business establishment (if the name and address of the foreign business establishment entity are changed; To be certified or consular legalized by the Vietnamese diplomatic mission or consular office in the foreign countries according to the provisions of Vietnamese law).
- Documents of the foreign trader appointing new chief of the representative office; Copy of passport (if foreigner)/ ID card (if being Vietnamese) of the new chief of the representative office; Documents proving that the former chief of the representative office has fulfilled the personal income tax obligation by the time of change (if changing of the chief representative, must be translated into Vietnamese and authenticated according to the provisions the law of Vietnam).
- A copy of the lease agreement or a copy of the documents proving that the trader has the right to exploit and use the location for the head office of the representative office; a copy of the document on the location of the proposed representative office (if the address of office is changed).
The original license of the representative office.
* Our tips:
Within 60 working days after the change of foreign traders, the procedures for modifying of the representative office license must be carried out.
Depending on the seriousness of the breach, the offender shall be fined from 20,000,000 VND to? 40,000,000 VND for acts of? “failing to carry out the procedures for amending, supplementing or re-granting of representative office establishment permits according”, in accordance with Decree 185/2013 / ND-CP dated 15 November 2013.
We have been providing service for thousand of multinational?company and?foreign representative office?in Vietnam. We are?able to understand deeply your expectations as well verify potential risks in advance that to provide tailored solutions and?in the most practical manner. We can guarantee for your final result in everything we do.