ABB Law would like to send you our advice on the fee and procedure of establishing Representative Office (the “RO”) in Vietnam:
Scope of operation of the Representative office
According to Vietnam’s laws, a RO is not permitted to perform any activities generating profit or any trade activities. The establishment of a RO is not considered as a legal commercial presence in Vietnam. For more detail, please refer to the scope of permissible activities of a RO:
- Operating as liaison office.
- Promoting the cooperation projects of foreign company in Vietnam.
- Researching market to push up chances to purchase commodities, supply and consume commercial services of foreign businesses in Vietnam.
- Supervising the implementation of foreign company’s contracts signed with Vietnamese partners or related to the Vietnamese market.
The advantage of establishment of the RO:
In spite of the limited operational scope, the establishment of a RO will provide your company with following advantages:
- Easier to establish and register compared to a subsidiary company.
- No requirement for minimum paid up capital and other legal requirements.
- The representative office can decisively control the employees, manage the business and trading in Vietnam and can do many works other than liaison.
- Regarding tax obligations, no taxes are applicable to RO’ s operations, besides the personal income tax payable by their staff.
ABB Law ‘s services of RO establishment
The establishment of the RO will be conducted at the Department of Industry and Trade of Ho Chi Minh City (“HCM DOIT”). Our Service shall include the following works:
- Preparing the checklist of necessary documents.
- Drafting the documents of the application dossier for a License of the RO establishment.
- Submitting the application dossier, following up the status and receiving the License.
- Do the post-licensing works including tax registration, seal registration and publication of the RO establishment.
- Support for renting office in Vietnam.
Working time for opening new R.O
|Applying the License for the RO||12 working days (maximum)|
|Applying for the seal of the RO||05 working days (maximum)|
|Applying for the tax code of the RO||05 working days (maximum)|
|Publication of the RO’s establishment||05 working days (maximum)|
The above working time is based on the laws and HCM DOIT’s regulations. Based on our experience, we always try our best to speed up the process for client’s benefit.
We hope that this letter will be helpful for your consideration in doing business in Vietnam. If you have any further inquiries, please do not hesitate to contact us.