Consulting on establishing branches and representative offices in Vietnam

Establish branches, representative offices and business locations in any form that will suit the needs of the current business. Please follow Smart Solutions For Business Company Limited(S4B Vietnam) right here in this article to choose the optimal form for your business.

1. Compare the differences between branches, representative offices and business locations

In addition to establishing a new enterprise, we can also establish additional dependent units to perform all or part of the enterprise’s functions in the following forms: establishing branches and representative offices. and business location. First of all, let’s learn about the differences between these three forms:

1.1 Branches

Branches are extensions of a business that perform all or part of the company’s functions. They have a broad scope, encompassing business and representative functions. Branches are authorized to act in the interests of the business, which includes engaging in activities like establishing contact offices, conducting research, providing information and support to businesses, accessing markets and partners, and more. It’s important to note that while branches have a wide range of functions, they are not allowed to engage in independent business activities. Branches have their own seals and are allowed to sign transactions in their name if legally authorized by the company. The form of accounting for a branch can be either independent or dependent on the parent company. In terms of taxes, branches are liable for license fees, V.A.T. tax, personal income tax, and corporate income tax.

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1.2 Representative Offices

In contrast, Establish representative office in Vietnam is more limited in scope. They carry out only a part of the business activities designated by the enterprise and do not have an authorized representative function. Like branches, representative offices own their seals. However, they do not have the authority to sign transactions in their own names. The accounting for representative offices is dependent on the parent company, and they are liable for license fees.

1.3 Business Locations

Business Locations are the most restricted in terms of operational scope. They are designated to carry out a part of the business activities but, unlike branches and representative offices, they do not have their own private seal. Business locations cannot sign transactions in their own names, and their accounting is dependent on the main business. Their tax liability is limited to license fees.

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2. Consulting on setting up branch office in vietnam

Thus, depending on the need to establish branches, representative offices and business locations, businesses will choose the appropriate type, specifically as follows:

  • In case an enterprise wants to establish a dependent unit with only the function of representing, signing contracts, etc. without performing business functions, the enterprise should choose to establish a representative office.
  • In case an enterprise wants to expand its business but does not need to perform a representative function, the enterprise should choose to establish a business location.
  • In case an enterprise wants to expand the scope of business activities, especially in provinces and cities other than where its headquarters is located, the enterprise should choose to establish a branch because the branch can operate independently. as a parent company, so it will be more convenient for customers to conduct transactions with the company.

3. Note the name when establishing branch office in Vietnam

  • Like establishing a business, the naming of these forms must be written with letters in the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols.
  • Must include the business name along with the phrase “Branch” for a branch, the phrase “Representative office” for a representative office, the phrase “Business location” for a business location.
  • Must be written or posted at branch headquarters, representative offices and business locations. The name of the branch or representative office is printed or written in smaller font size than the Vietnamese name of the enterprise on transaction papers, documents and publications issued by the branch or representative office.

After consulting the information about establishing branch office in vietnam, Establish representative office in Vietnam and business locations, you will surely have made the appropriate decision for your business orientation. If you encounter procedural difficulties or need more information, please contact Smart Solutions For Business Company Limited(S4B Vietnam) immediately for the fastest and most dedicated advice.

S4B Vietnam

  • Address: Unit 701B-701C, Tower A, Handi Resco, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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