Which Form of Investment – Set up Branch Office or Set up Company in Vietnam?

Which Form of Investment – Set up Branch or Set up Company in Vietnam?

Foreign entities can set up company in Vietnam or set up branch offices in Vietnam to carry out business activities.

There are several main different aspects between opening a branch office or establishing a foreign owned company in Vietnam.

 

1.Conditions

-Permits for establishment of Vietnam-based branches of foreign enterprise shall each have a valid term of five years.

-Foreign enterprise must choose between establishing a 100% foreign capital enterprise or forming a joint-venture with domestic investor or company.

2.Certificate

-The Branch office needs to apply and obtain the operation license of a Branch;

-A foreign owned company will need to apply and obtain the investment certificate (“IC”) to operate in Vietnam.

3.Capital

-Optional, foreign entity will decide how much money to invest in branch. The allocation capital for branch is capital for the subordinate units.

-Mandatory, foreign entity will need to provide minimum capital as required by Vietnam Law in conditional investment area.

4.Obligation of owner

-For branch office in Vietnam, owner takes full responsibility;

-For company, owner takes responsibility within the capital contributed into the company in Vietnam;

5.Other matters

-For branch office setting up in Vietnam, the procedure is less complicated compared to those for the establishment of a 100% foreign owned company;  the branch office is able to carry out trading and some other activities as stipulated by Vietnam laws and the WTO commitments which Vietnam enters. The business lines of a branch have to be aligned with the business lines of the headquarter of the foreign entity.

-Setting up foreign owned company would be more complicated than the setting up of the branch office, however this form of investment has more flexibility and freedom as it is a stand alone Vietnam entity recognized under Vietnam laws.

ANT Lawyers is a law firm in Vietnam with English speaking lawyers, located in the business centers of Hanoi, Danang and Ho Chi Minh City to provide convenient access to our clients. With highly professional staff and great experience in foreign investment, we would like to support you to establish company in Vietnam.

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How Foreign Entity Could Set up a Branch Office in Vietnam

How Foreign Entity Could Set up a Branch Office in Vietnam

A foreign business entity or a foreign trader is allowed to set up a branch office in Vietnam to conduct business activities.

How to Set up branch office in Vietnam?

Having the right to conduct business activities and make profit are how a branch differs from a representative office in Vietnam. A branch depends on the foreign business entity that set-up the branch while a foreign owned company set-up in Vietnam exists by itself. The Vietnam Department of Industry and Trade will be approving the establishment of a branch office in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam.

In particular, the branch of a foreign business entity in Vietnam (referred to as the “Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its licence for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the branch.

1. Rights of the Branch

-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.

-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.

-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.

-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.

-To remit profits abroad in accordance with the law of Vietnam.

-To have a seal bearing the name of the branch in accordance with the law of Vietnam.

-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

2. Requested Conditions for Establishment the Branch Office in Vietnam

A foreign company which has effectiveness business activities will be allowed to open the branch office in Vietnam if this company has real demand to open the market in Vietnam and meet some conditions as below:

-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;

-Having been operating for at least five years after its lawful establishment or business registration certificate in Vietnam.

3. Issuance the Certificate of Branch:

The issuance of the Certificate of Branch will be implemented by the Department of Industry and Trade Department after the foreign company meets all of conditions as Vietnam legal requirements.

The issuing period will be within 20 working-days after the date of submitting the full valid documents as requested.

With highly professional staff and great experience in investment in Vietnam, ANT Lawyers – English speaking law firm in Vietnam would like to support you to set up the branch office in Vietnam

Source ANTLawyers: https://antlawyers.vn/legal-service/establishment-of-the-foreign-traders-branch-in-vietnam.html

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How to establish company in Vietnam?

Foreign investors may invest in the form of 100% capital to establish company in Vietnam, being limited liability company, joint stock company, partnership company.

 

How to establish company in Vietnam

Foreign investors that invest in Vietnam for the first time must have investment projects and fill in investment registration or examination procedures at state agencies in charge of investment in order to be granted investment registration certificates. Investment certificates shall concurrently be business registration certificates. Company with 100% foreign capital has founded and operated from the date of issuance of the investment certificate.

A project dossier for establishing company in Vietnam shall comprise:

-Registration/Request for issuance of Investment Certificate;

-A report on financial capability of the investor;

-Draft of the company’s charter;

-List of members of company;

-Copy of the people’s identity card, passport or other lawful personal certification, for individual members;

-Copy of the establishment decision, business registration certificate or other equivalent document, for member organizations;

-Copies of the authorization document, the people’s identity card, passport or other lawful personal certification, for authorized representatives.

-Copies of the business registration certificates of the foreign member organizations must be authenticated within three months before the date of submission of the business registration dossier by agencies where such organizations are registered;

-Written authorization of the investor in case investor is organization and valid copy of the lawful personal certification of the authorized representative. Documents in foreign languages must be translated into Vietnamese, notarized and legalized;

-The joint-venture contract or Business Cooperation Contract (BCC);

-Other documents required by Vietnam law.

The establishment of a company in Vietnam would take from 30 days. The extra time might be needed in case the investment area is conditional or the State government needs to examine the investment project. Minimum capital, special licenses or other conditions might be required in certain investment projects.

With highly professional staff and great experience in foreign investment, ANT Lawyers would like to support you in establishing company in Vietnam.

ANT Lawyers, as a reliable law firm in Vietnam, we focus on providing possible solutions that best meet the needs of legal and business clients. We help customers achieve their goals while protecting their interests, minimizing risks, and complying with the law.

Source ANTLawyers: https://antlawyers.vn/library/establish-company-in-vietnam.html

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Da Nang City to carry out investment promotion in 2022

Da Nang City to carry out investment promotion in 2022 in the direction of innovation, initiative, focus, and prioritize on strategic markets

In 2022, Da Nang selected the theme as “Year of safe and flexible adaptation, effective disease control and socio-economic recovery and development”. Accordingly, the city has built the Investment Promotion Program in 2022 in the direction of innovation, initiative, focus, prioritizing strategic markets for key fields (high technology, information technology, high-quality service, etc.) to attract foreign investors to invest and set up company in Vietnam in genenal and Da Nang in particular.

To achieve this goal, Da Nang city has promoted research, assessed potential markets and investment partners, built images, promoted, introduced the investment environment, potential policies, and opportunities for investment association and connection. Along with that, the city has supported and guided to create favorable conditions for investment activities of international investors, built a list of investment attraction projects, publications and documents for investment promotion, etc. in order to attract foreign investors to establish company in Vietnam for doing business.

Accordingly, in 2022, Da Nang will study and implement the project “Building Da Nang into a regional financial center”; Project “Development of industry and services related to yachts”; Project “Promoting investment attraction to Da Nang city in the period of 2021 – 2025, vision to 2030”; The overall project of economic diplomacy in Da Nang city in the period of 2021 – 2025; Project on implementation of research – development, incubation – start-up, innovation and training of high-quality human resources… At the same time, Da Nang City implement investment procedures and call for businesses to invest in key projects. Access and connect with venture capital funds, start-up experts, large-scale technology enterprises, innovative start-up infrastructure investors, innovative start-ups. The City is focusing on promoting key investment projects, promoting projects in high-tech zones, concentrated IT zones, etc.

Besides, Da Nang City is organizing investment promotion conferences in the form of face-to-face and online to key markets such as the US, Korea, Japan, Europe, Taiwan, Singapore…; organize connection activities, promote private investment, event Route Asia Development Forum 2022 is held in Da Nang city.

The city will also increase proactive contact with high-level contacts with large corporations (belonging to Forbes 500), businesses in developed countries (G7, G8, OECD…), business associations, and big banks of other countries. The country is having the policy to shift investment capital to focus on calling for investment in Da Nang. Da Nang city is implementing the promotion of ODA projects, projects in the form of public-private partnership (PPP) …

In Da Nang Hi-Tech Park and Industrial Parks, in order to effectively implement the 2022 Investment Promotion Program of the City People’s Committee, the Management Board of Da Nang High-Tech Park and Industrial Parks has built and issued implementing investment promotion programs in the direction of innovation, prioritizing strategic markets for key fields such as high technology, information technology, high-quality services….

Through these activities, Da Nang City hopes that in 2022, many international investors will make investments in Da Nang to set up business, in order to create a vibrant and effective investment environment, taking advantage of the strengths, investment incentives from the city, thereby bringing high profits for their investment activities.

With highly professional staff and great experience in foreign investment, ANT Lawyers - a law firm in Vietnam would like to support you to establish company in Vietnam.

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English Speaking Law Firm in Vietnam

ANT Lawyers, English speaking law firm in Vietnam City with English speaking lawyers is located in the business center that provides convenient access to our clients.

Law Firm in Vietnam

As a single, fully integrated, global partnership, we pride ourselves on our approachable, collegiate and team-based way of working

ANT Lawyers is a member of International Bar Association, Vietnam Bar Federation, Hanoi Bar Association.

ANT Lawyers is an exclusive Vietnam law firm member of Prae Legal, a global law firm network spanning 5 continents and 150 countries.

ANT Lawyers is a boutique firm specialising in corporate M&A and representing foreign clients and investors across a wide range of domestic and cross-border transactions, including restructuring and joint ventures” IFLR1000 reviews under Financial and Corporate.

We pride ourselves on international recognition by IFLR1000 on Financial and Corporate practice, Legal500, international standard by Prae Legal peer members, local expertise and strong network with Vietnamese authorities and local experts.

Our business strategy is driven by customers’ needs and our focus to provide clients with a high quality legal advice within business context.

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