LEGAL SERVICE FOR EXPAT IN DANANG CITY

• Law on Commerce 2005.
• Decree No. 07/2016/ND-CP detailed regulations on establishment of Representative offices or branches of foreign traders in Vietnam under Law on Commersce.

B. ORDER AND PROCEDURES:

III. ADJUSTMENT, RE-GRANT, EXTENSION OF LICENSES FOR ESTABLISHMENT OF BRANCHES OR REPRESENTATIVE OFFICES:

1.    Adjustments to Licenses for Establishment of branches or representative offices:

1.1. Cases of adjustments to Licenses for Establishment of branches or representative offices:

• Changes in the name or location of the head office of a foreign trader.
• Changes in lines of business of the foreign trader affecting the operations of its branches in Vietnam.
• Replacement of the head of the representative office or branch.
• Changes in the name of the representative office or branch.
• Changes in the operations of representative offices or branches
• Change in the location of the representative office.
• Changes in the location of the branch .

1.2. Applications, order and procedure for adjustments to Licenses for Establishment of branches or representative offices:

An application for adjustments to the License for Establishment shall include: 1 set

• An application form for adjustments to the License for Establishment of the representative office using the form promulgated by the Ministry of Industry and signed by a competent representative of the foreign trader.
• Documents as proof of adjustments. To be specified:
  • Changes in the name or location of the head office of a foreign trader: copies of legal documents as proof of changes in the name or location of the head office of a foreign trader released by competent authorities. Documents shall be certified, translated and consularly legalized.
  • Changes in lines of business of the foreign trader affecting the operations of its branches in Vietnam: copies of legal documents as proof of changes in the lines of business of the foreign trader released by competent authorities. Documents shall be certified, translated and consularly legalized.
  • Replacement of the head of the representative office or branch: Documents shall be certified, translated including:

A letter of appointment of the new head of the representative office or branch;

Copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the new head of the representative office/branch

Proof of fulfillment of personal income tax liabilities of the former head of the representative office/branch at the time of changes.

• Change in the location of the representative office, branches:

Copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the representative office or branch;

Copies of documents on the expected locations of the representative office or branch.

• The original License for Establishment of the branch or representative office.

Order and procedure:

• Within 60 days from the date of such changes, the foreign trader shall apply for adjustments to the License for Establishment of their representative office or branch;
• Within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete) . The request for supplementation to the application shall be made only once during the processing of the application.
• Within 05 working days from the date of receipt of the valid application, the licensing agency shall send the applicant a written notification of whether the adjustments to the license or establishment of the representative office or branch are approved or not. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

2. Re-grant the Licenses for Establishment of branches or representative offices:

2.1. Cases of re-grant the Licenses for Establishment of branches or representative offices:

• The representative office relocates to another province or territory
• The Licenses for Establishment of the branch or representative office is lost, damaged or destroyed in any form or shape.

1.2. Applications, order and procedure for re-granting to Licenses for Establishment of branches or representative offices:

Applications for re-granting includes: 1 set

• The representative office relocates to another province or territory

• An application form for re-grant of the License for Establishment of the representative office using the form promulgated by the Ministry of Industry and Trade and signed by a competent representative of the foreign trader;
• An announcement of shutdown of the representative office submitted to the licensing agency in which the representative office is currently located.
• Copies of the existing License for Establishment of the representative office.
• Copies of documents on the expected location of the representative office

• The Licenses for Establishment of the branch or representative office is lost, damaged or destroyed: An application form for re-grant of the License for Establishment of the representative office or branch using the form promulgated by the Ministry of Industry and signed by a competent representative of the foreign trader.

Order and procedure:

• The representative office relocates to another province or territory

The foreign trader shall apply for re-grant of the License for Establishment of their representative office within 30 days from the date on which the notification of shutdown of the representative office is submitted. If the foreign trader fails to apply for re-grant of the License for Establishment of the representative office in the aforesaid time limit, such foreign trader shall apply for the license or establishment of their representative office.

Within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete) . The request for supplementation to the application shall be made only once during the processing of the application.

Within 05 working days from the date of receipt of the valid application, the licensing agency shall re-grant the license or establishment of the representative office to the applicant. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

3. Extension of Licenses for Establishment of branches or representative offices

3.1. Cases eligible for extension of Licenses for Establishment of branches or representative offices:

Every foreign trader shall be eligible for the grant of extension of the license or establishment of the representative office or branch; except for being revoked if such representative offices or branches:

• Fail to come into operation for 01 year and fail to enter into transactions with licensing agencies.
• Fail to submit reports on the operation of the representative office or branch for 02 consecutive years.
• Fail to submit reports to the licensing agency within 06 months from the deadline of submission or at the written request of the licensing agency.
• Be governed by provisions of laws.

3.2. Applications, order, procedures for extension of Licenses for Establishment of branches or representative offices:

An application for extension of the License for Establishment shall include: 1 set

• An application form for extension of the License for Establishment of the representative office or branch using the form promulgated by the Ministry of Industry and signed by a competent representative of the foreign trader.
• Copies of the Certificate of Business registration or equivalent documents of the foreign trader; which are translated into Vietnamese and certified or legalized by overseas diplomatic missions or Consulates of Vietnam
• Copies of audited financial statements or certificates of fulfillment of tax liabilities or financial obligations of the last fiscal year or equivalent documents as proof of existence and operation of the foreign trader issued or certified by competent authorities where such foreign trader is established; which are translated into Vietnamese and certified true in accordance with laws of Vietnam.
• Copies of the existing License for Establishment of the branch or representative office.

Order and procedure:

• At least 30 days prior to the expiry of the license, the applicant shall apply for extension of the License for Establishment of the branch or representative office
• Within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete) . The request for supplementation to the application shall be made only once during the processing of the application.
• 4. Within 05 working days from the date of receipt of the valid application, the licensing agency shall grant an extension of the license or establishment of the representative office to the applicant. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

4. Charges for grant, re-grant, adjustment and extension of Licenses for Establishment of branches or representative offices

• Representative office located outside industrial parks, export-processing zones, economic zones or hi-tech zones: The Department of Industry and Trade of the province where the representative office is expected to be located.
• Representative office located inside industrial parks, export-processing zones, economic zones or hi-tech zones: Management Boards of industrial parks, export-processing zones, economic zones or hi-tech zones (hereinafter referred to as Management Boards)
• Branches: Ministry of Industry and Trade.

Legal expert: Thuy Vy (0905.045.915)

FDVN Law Firm