Understanding the Concept of Vietnam Representative Office | Doing business in Vietnam

Vietnam representative office is another type of entity available for companies looking to do business in Vietnam. This article covers all the essential points in regard to setting up a representative office (RO).

Vietnam representative office (RO) registration is an ideal solution for foreign investors with pre-existing companies wanting to test the waters in Vietnam, before making a final investment decision. Investors in these cases may choose to setup a representative office. Basically, this type of entity enables investors and foreign companies to analyze, interpret and understand the potential of Vietnam and surrounding markets for their business.

Essentially an RO may engage in trade promotion and other support activities as long as it does not generate any local revenue in Vietnam. An example of these activities are consumer behavior research, supply chain analysis, competition mapping, competitive advantage studies and those which may be part of the company’s future integrated marketing communication plan.

An RO may also promote the products and services of the parent company and thus accrue business for the parent company.

A Vietnam representative office possess a legal identity in the Vietnamese corporate environment. In reality however, an RO is strictly viewed as nothing more than a liaison office. These types of entities are also prohibited from indulging in any type of contracts, negotiations, or getting involved in trading or leasing of any kind under its name.

Below are examples of Vietnam representative office business registration certificate.

Original Vietnamese version

Translated English version

Few key facts about Vietnam Representative Office Registration

1. Name of the representative office should be the same as that of the parent company.
2. The RO should have one legal representative who is responsible for all aspects of its day to day functioning.
3. The RO can hire as many employees as they wish inorder to support their business activities. This typically never exceeds 5 people however.
4. The validity of Vietnam representative office registration is 10 years (5 +5).
5. An investor must shutdown the RO once the license expires.
6. An Investor cannot convert an RO into to a subsidiary or a branch office.
7. The parent company must have an established entity in its own country for over 1 year.
8. If in case the parent company becomes dormant, the RO will get de-registered in Vietnam.
9. In case of changes in the structure of the RO, for example, change in address and activities, the change must be notified to the DoIT (Department of Industry & Trade) at least one month prior to the change.
10. The RO can obtain special permission for importing and exporting sample products and materials to and from the parent company. RO’s cannot trade these goods locally however.

Vietnam Representative Office Registration Requirements

An investor needs to make available the following documents for the registration of a representative office:

1. Certificate of incorporation or business license or equivalent of the parent company.
2. The latest audited annual reports of the parent company.
3. Decision of the board of directors appointing a legal representative.
4. Passport of the legal representative.
5. A completed application dossier

How MAHAN Can Help you?

If you are a foreign company and looking for Vietnam representative office registration, then it is better to use the services of a professional company incorporation service provider like Mahan. We provide a #1StopService for RO registration including:

1. Full assistance in completing the application of Vietnam representative office registration process.
2. Prepare and file all the necessary paperwork
3. Be a first point of contact for all the clarifications and queries raised by the authorities
4. Provide support and guidance in immigration services.
5. Opening of company bank accounts with any of the banks in Vietnam.
6. Assistance in renewal of the license of the Vietnam representative office.
7. Assistance in filing year end reports with the DoIT.
8. Closing down the representative office and setting up a LLC or a branch office.

Get in touch with us, if you are ready to invest in Vietnam or need more information on the business landscape or on any matter related to doing business in Vietnam. Also read our section on Common investor questions by clicking the link here.

Mahan is a Vietnam-based registered corporate services provider. We have a team of 40+ people who have particular expertise in investment, legal, finance, accounting, taxation, consumer goods trading and strategic planning. We also have a trading license and can support companies trade in a large variety of products. Mahan is committed to giving foreign investors the local advantage and support, needed to help them make smarter decisions so that they can focus on doubling their investment and increasing their wealth without worrying about administrative hurdles and other compliances.