Procedures for setting up a company branch in Vietnam

ASLAW

Procedures for setting up a company branch in Vietnam

Setting up a branch office of the company is an administrative procedure carried out by the company with the Department of Planning and Investment of the province or city where the company registers its head office and wishes to expand its business location at home or abroad. Except for the head office of the enterprise.

1.      What is a corporate branch?

A branch is a dependent unit of the company, responsible for performing all or part of the company’s functions, including agency functions. Branch work must be adapted to the work of the company.

– The branch must bear the name of the company, with the corresponding addition identifying the branch.

– The company has the right to establish branches in the country and abroad. A company can establish one or more branches in a locality according to administrative limitations. Procedures and formalities for establishing a company branch shall be prescribed by the Government.

2.      Conditions for establishing a company branch

Conditions on the operation status of the branch

To be able to establish a branch, an enterprise must first be established. After obtaining the business registration certificate, the new company can carry out the procedures for establishing a branch. Therefore, it is not possible to carry out the branch establishment procedure at the same time as the company establishment procedure.

Conditions on the name of the branch

– Branch name should be written in letters of the Vietnamese alphabet, letters F, J, Z, W, numbers, and symbols. The branch name must include the company name with the phrase “Branch” in the case of a branch. For example Company name is: ASLAW Co., Ltd., the branch name must contain the phrase: ASLAW Co., Ltd branch at ……. In addition to the name in Vietnamese, the branch of the company can register the name in a foreign language and the initials.

Conditions for setting up branch’s head office

– The head office of the branch is the contact point of the company in the territory of Vietnam, whose address is determined including house number, niche, alley, lane, street, street or hamlet, hamlet, hamlet, neighborhood, district, district, town, districts, towns, provincial cities, provinces, and centrally-run towns; phone number, fax number, and e-mail (if any). The company has the right to establish branches in the country and abroad. A company can establish one or more branches in a locality according to administrative limitations.

Conditions of industry and industry of operation

– The industry must be suitable for the field of operation of the company. Therefore, company affiliates are only allowed to register the trades in which the company has registered.

Conditions for branch directors

– The head of the agency is a natural person with full civil act capacity; It could be another person or a member of the company. The branch director is not a person whose tax identification number is suspended in the National Tax Registration and Business Registration System.

Select branch operation type

– Companies can choose independent or dependent branch accounting. The common point of the two types is that the two types of branches do not have legal status. Both have the right to generate business activities and issue VAT invoices independently of the business. The license fee for any branch to pay is 1,000,000 VND/year. Work under the authorization and maneuver of the company. However, each firm has specific differences regarding tax declaration:

Establishing a branch of an independent accounting company

– Tax: proactively determine taxable expenses and taxable income. To be responsible for the declaration and payment of corporate tax regardless of the business performance of the company as well as other branches in the same company. Full accounting, financial statements, etc.

– Accounting department, independent accounting branch accounting department is an accounting unit according to the provisions of the law on accounting. Establishing a branch of a dependent accounting company

– Transfer data and receipts to the company to enter the year-end ledger on the financial statements. The company combines data from other branches of the same company and its operations to account for and fulfill the tax obligations of the companies. The numbers in the books are part of the company’s books.

– The enterprise’s accounting unit includes the branch’s accounting department.

3.      Company branch establishment profile

– Notice of branch creation (signed by the legal representative).

– A written decision on the establishment of a branch: From the owner of a limited liability company to a general partner. Members’ Council of a limited liability company with two or more members. General Meeting of Shareholders of a joint-stock company. The decision of the members of the company).

– Minutes of the meeting to establish the branch (private companies, limited companies do not need this type of minutes).

– Decision on a branch belonging to another employee).

4.      Procedures for setting up a company branch in Vietnam

 The procedure for setting up a branch is carried out according to the following steps:

 Step 1: Prepare to qualify for branch establishment (Company has been established)

 Thanks to that, the company prepares the conditions and documents to establish a branch.

 Step 2: Dial the request for branch establishment

 Dossier for registration of establishment of a company branch includes:

– Notice of branch establishment (as the legal representative).

– A written decision on the establishment of a branch: From the responsible company owner to a list of collaborators. Members’ Council of a limited liability company with two or more members. General Meeting of Shareholders of a joint-stock company. The decision of the members of the company).

– Minutes of the meeting to establish the branch (private companies, limited companies do not need this type of minutes).

– Decision on appointment of branch director.

– Branch director certificate of identity papers:

• People with Vietnamese nationality: Identity card or Passport;

• Foreign nationals: Temporary residence permit issued by Vietnamese competent authorities, Work permit and Passport;

• For some professions as prescribed by law, a valid copy of the professional certificate of the head of the branch (or another employee of the branch) is required.

Step 3: Apply to the establishment of a branch and disclose information

The company applies for registration of establishment of a branch and is valid for information disclosure at the Business Registration Office – Department of Planning and Consulting to establish a branch.

Step 4: The Business Registration Authority issues the certificate and publishes it

Within 03 (three) working days from the date of receipt of complete and valid dossiers, the business registration authority shall grant the branch operation registration certificate and publish branch information. The word of the field must be Unknown message text does.

Step 5: Engrave the branch mark

After receiving the branch’s operation registration certificate, the branch will proceed to engrave the branch’s seal. When the mouse pointer is on the branch, remove the address information, write the address of the province so that the branch conversion field does not need to be modified.

Step 6: Procedures for setting up a company branch in vietnam are as follows:

Open the operation license and pay the fee to the operating license branch

– Branch operation license fee is 1,000,000 VND/year

– In case the branch is established before July 1 every year, the license fee shall be fully paid: 1,000,000 VND/year. If the branch is established after July 1 every year, the valid payment of half of the course for the first year of establishment: 500,000 VND/year. Branches must declare and pay course fees within 30 days from the date of issuance of paper certificate registration activities.

Make the board effect and hang the company sign at the office

– The branch must hang the company sign at the head office with the following content: Name of the management agency (the agency issuing the ‘operation registration certificate (ie Department) (Planning and Investment), branch’s name, register your address, phone number or email (if available).

 Buy an electronic signature to pay taxes electronically

– The branch must purchase electronic digits to pay electronic tax at the branch.

– After the branch office receives the certificate of operation, the company’s staff sends information on registration of branch operation to the tax administration agency and submits the initial tax return if the branch is located in a province or city. Under the central. In addition, quarterly, the branch must declare value-added tax on the branch’s income and expenses.

– The legal representative of the company is responsible for registering changes in the content of the Certificate of registration of branch operations within 10 days from the date of the change.

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