Opening Branch of your Company in Vietnam
I. How to open the Branch of your Vietnamese company
Let's say you’ve started your business in Vietnam, and it is firmly on its feet generating profit. It’s time to think about business expansion and open a branch of your company in another city or region.
The branch office is a location, other than the main office, where business is conducted. A branch office will typically have a branch manager who will report directly to and take orders from a management member of the main office. A branch structure exposes the owning company to full taxability and legal liability in regard to the branch office's operations.
In that way all business codes with additional conditions allowed for the head office of the company are available for the branch. You can use another name for the branch, it doesn’t have to match the head office company name.
The session of the Board of Directors appoints the director of the branch, approves Branch Regulations and samples the branch's stamp. The Regulations will be the basis for commercial activity for the structural entity of your company.
The branch pays the excise tax at a rate of 2 000 000 VND (90 USD) every year along with the head office. If the branch opens a separate bank account and uses independent calculated forms, it becomes a self-dependent taxpayer including VAT. If the branch acts within the frames of the head office bank account and doesn’t process its own reporting documents, you shouldn’t hand over accounting and tax reports for the branch separately. In order to register a branch of a Vietnamese company, you have to provide the address of its office.
Price for registering a branch of a Vietnamese company is 250 USD within 5 working days.
II. How open the Branch of foreign company in Vietnam
In order to open a branch of a foreign company in Vietnam, your company should have been running for no less than 5 years in your own home country. If your business activity doesn’t have additional conditions for foreigners, you can open the branch immediately after submission of documents. In the case that your business activity falls under additional conditions for foreigners, you have to get permission for relevant business codes in the Department of Investments as well as planning in the province you intend to open your Branch office.
Foreign companies should prepare the following documents:
- Copy certificate of foreign company registration in your home country (translated to Vietnamese, certified by apostille Vietnamese Embassy in your country);
- Written appointment with the Head of Branch (translated to Vietnamese, certified by apostille Vietnamese Embassy in your country);
- Copy audit report of foreign company for the last year (translated to Vietnamese, certified by apostille Vietnamese Embassy in your country);
- Notarized copy of ID (for Vietnamese citizen) or notarized copy of passport (for foreign) the Head of Branch;
- Notarized supporting documents for office (rental or sales contract, etc).
Price for registering a branch of a foreign company in Vietnam is 800 USD with 15 working days.
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