Opening Branch of your Company in Vietnam.
I. Opening a Branch of a Company Registered in Vietnam
A Branch Office (Chi nhánh) is a dependent unit of a company established outside its registered office, authorized to carry out all or part of the parent company's business activities. The legal status of branch offices is governed by the Law on Enterprises No. 59/2020/QH14.
A branch office is not a separate legal entity. All contracts, liabilities, and obligations arising from its activities are borne by the parent company.
Business Activities of a Branch Office
A branch office may only conduct business activities that are already registered by the parent company. If the company intends to expand into additional business lines through the branch, the corresponding business activities must first be added to the parent company's Enterprise Registration Certificate.
Registration and Operation of a Branch Office
To register a branch office, the company must provide a registered business address supported by documents confirming the right to use the premises (such as a lease agreement).
The Head of the Branch is appointed by a decision of the parent company. The scope of authority is determined by the company's internal resolutions or a power of attorney.
A branch office may maintain its own accounting records or operate under the centralized accounting system of the parent company. The chosen accounting model determines the tax filing procedure.
Where necessary, a branch office may open its own corporate bank account in Vietnam to conduct business transactions.
A separate company seal for the branch is optional. The parent company may decide whether or not to use one.
When Should You Open a Branch Office?
Opening a branch office is advisable when an existing company operating in Vietnam intends to expand its business without establishing a new legal entity.
Typical situations include:
- expanding into another city or province;
- opening an additional office, retail store, warehouse, manufacturing facility, or service center;
- expanding sales and customer support operations;
- conducting business in multiple regions while maintaining centralized management and accounting;
- establishing a permanent presence to work with local customers, suppliers, and government authorities.
A branch office is an effective solution for companies seeking to scale their operations while maintaining a single legal entity, centralized management, existing licenses (where permitted by law), and an established corporate reputation.
Branch registration service fee: from USD 250
Estimated processing time: from 7 working days
Our experts will advice you on all issues related to registering a branch of your company in Vietnam. This will save you time and money.
You can book a consultation by following the link below.
Book a consultation with an expert on registering a branch of your company in Vietnam
II. Opening a Branch of a Foreign Company in Vietnam
The establishment of a branch office of a foreign company in Vietnam is governed by the Law on Commerce No. 36/2005/QH11, Government Decree No. 07/2016/ND-CP, and Decree No. 14/2024/ND-CP.
It is important to note that not every foreign company is eligible to establish a branch office in Vietnam. Eligibility depends on the company's business sector and Vietnam's international commitments. In many cases, foreign investors are required to establish a Foreign-Invested Company (FDI Company) instead of a branch office.
Eligibility Requirements
To establish a branch office in Vietnam, a foreign company must generally:
- have been legally incorporated for at least five years;
- be actively conducting business operations;
- maintain a valid legal status in its home jurisdiction;
- operate in a business sector that permits the establishment of branch offices in Vietnam.
For conditional or licensed business sectors, the competent authorities may require additional approvals or consultations with the relevant ministries.
Required Documents
The following documents are generally required:
- Certificate of Incorporation or Business Registration Certificate of the foreign company;
- financial statements for the latest financial year;
- resolution or decision on establishing the branch office;
- appointment decision for the Head of the Branch;
- passport of the Head of the Branch;
- documents confirming the legal right to use the office premises in Vietnam;
- power of attorney (if submitted through an authorized representative).
Documents issued outside Vietnam must be consular legalized (unless exempt under an applicable international treaty), translated into Vietnamese, and notarized in accordance with Vietnamese law.
License Validity
A Branch Establishment License is issued for a period of up to five years, but its validity cannot exceed the remaining validity of the foreign company's registration in its home country. The license may be renewed upon expiration.
Branch registration service fee: from USD 250
Estimated processing time: from 7 working days
Branch Office or FDI Company?
Before entering the Vietnamese market, foreign investors should determine which business structure best suits their objectives.
Although opening a branch office is possible in certain sectors, establishing a Foreign-Invested Company (FDI Company) is generally a more flexible solution for most investors, providing broader opportunities to conduct business activities in Vietnam and fewer operational restrictions than those applicable to branch offices.
Contact us now and get a proposal for registering a branch of your company in Vietnam.