Under Vietnamese laws on Tourism, in order to set up representative office in Vietnam, a foreign tourist company should satisfy following conditions:

–         Being recognized as legal entities by countries or territories of business registration;

–         Having business tourism activities operated for no less than 01 year since legal establishment or valid business registration in the countries of origin.

Please kindly be noted that the License for establishment of representative office shall be expired in 05 (five) years but no more than expiration date of business registration or equal documents of foreign businesses in case foreign legislation establishes such a date. The License can be renewed.

Under Circular No.89/2008/TT-BVHTTDL dated December 30th 2008 of Ministry of Culture, Sports and Tourism of Vietnam guiding the implementation of the law on representatives of foreign tourist companies in Vietnam, a foreign tourist company can establish the representative office in Vietnam to:

–         Operate as liaison office of foreign tourist company in Vietnam;

–         Promote co-operation projects of foreign tourist company in Vietnam;

–         Research market to push up chances to purchase commodities, supply and consume tourism services in Vietnam;

–         Supervise implementation of foreign tourist company’s contracts signed with Vietnamese partners or related to Vietnam market;

–         Conduct other works allowed by applicable law.

It should be noted that under the Laws of Vietnam, a representative office is NOT permitted to offer service(s) for profit-making purposes on its behalf in Vietnam.

Specific conditions for establishment of representative office of foreign tourist company.

Under Vietnamese laws on Tourism, in order to setup a representative office in Vietnam, a foreign tourist company should satisfy following conditions:

–         Being recognized as legal entities by countries or territories of business registration;

–         Having business tourism activities operated for no less than 01 year since legal establishment or valid business registration in the countries of origin.

Please kindly be noted that the License for establishment of representative office shall be expired in 05 (five) years but no more than expiration date of business registration or equal documents of foreign businesses in case foreign legislation establishes such a date. The License can be renewed.

Condition for appointment of chief of representative office

Under Decree No.72/2006/ND-CP dated July 25th, 2006 of Vietnam Government detailing Trade Law’s regulations on representative offices, branches of foreign company in Vietnam, Chief of representative office cannot concurrently hold the following positions:

–         The head of a Vietnam-based branch;

–         The representative at law of the foreign trader for signing contracts without the latter’s letter of authorization;

–         The representative at law of the enterprise established under Vietnamese law.

Furthermore, in case the foreign company authorizes the Chief of representative office to sign and modify the contracts, the authorization must be in writing form. Each authorization is for one time of signing or modifying only.

Regarding to the personal income tax of Chief of representative office in accordance with Decree No. 100/2008/ND-CP dated 08/09/2008 of the Government detailing a number of articles of the Law on Personal Income Tax, the personal income taxpayers include resident and non-resident individuals who earn taxable incomes. Taxable incomes of taxpayers are determined as follows:

–         For resident individuals, their taxable incomes are incomes earned inside and outside the Vietnamese territory, regardless of where the incomes are paid;

–         For non-resident individuals, their taxable incomes are incomes earned in Vietnam, regardless of where the incomes are paid.

Last but not least, if the Chief of representative office of foreign company in Vietnam is foreigner, it is required to obtain the Work Permit from Department of Labor, Invalids and Social Affairs.

The location of the representative office

According to Vietnamese laws and our factual experience, the leased office for setting up representative office in Vietnam should be located in a private house and/or a suite in an office building. Apartment(s) for residence only shall be no longer accepted.

In the case of leasing a private house, Client must require for supply of Certified Copied Certificate of ownership of the house. If Client leases a suite in office building, Office Lessor must provide both the Certificate of ownership and Certificate of Business Registration. Department of Industry and Trade needs these documents to exam and grant the License.

Scope of service provided by S&B Law.

S&B LAW is ready to provide legal consulting service to Client for the purpose of establishing a representative office of foreign tourist company in Vietnam.

–          Providingadvices on all legal aspects relating to procedures of obtaining License for establishment of representative office from competent authority;

–          Preparing Application Dossiers (in both Vietnamese and English) for obtaining License for establishment of representative office;

–          Representing Client to submit the Application Dossiers for obtaining License for establishment of representative office;

–          Working with provincial competence authority on behalf of Client to obtain the best support on reviewing and considering the application and providing explanation and/or supplementation of application dossiers per request;

–          Updating information of the approving process to Client;

–          Receive new License for establishment of representative office from provincial competent authority and hand it over to Client.

If you would like further information on Setting up a representative office of foreign tourist companies in Vietnam, please either email to our Partners at: info@sblaw.vn or call to our Office:

Ha Noi Office: +84 (4) 62 62 0246

HCM Office: +84 (8) 35 208 101.

– See more at: http://www.sblaw.vn/entry/setting-up-a-representative-office-of-foreign-tourist-companies-in-vietnam#sthash.3RwMA2E6.dpuf

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