Representative Office is an option for Foreign Investor who wishes to conduct market research, trade promotion etc in Vietnam.
Depending on business sector of the parent companies abroad, conditions and procedure for setting up representative office in Vietnam may be different.
Up to now, Vietnam Law only stipulate conditions and procedures for setting up Representative Office for foreign companies operating in the field of trade, trade related services, sale and purchase of goods; education; tourism; banking, law; securities and airline only.
Generally, a Representative Office shall be permitted to conduct following activities:
– Operate as contact office of the Company in Vietnam;
– Promote cooperation projects of the Company in Vietnam;
– Research market to push up chances to purchase commodities, supply and consume commercial services of the Company in Vietnam;
– Supervise implementation of the Company’s contracts signed with Vietnamese partners or related to Vietnam market;
The Representative Office shall not be allowed to conduct business activities for profit making purpose in Vietnam.
For foreign companies operating in field trade, trade related services, sale and purchase of goods, it shall take about 15 working days from submission of application dossier to the licensing authority for granting the License for establishment of Representative Office. The License for establishment of Representative Office shall be valid within 5 years. The validity term of such License can be renewable. However, the validity term of License for establishment of Representative Office must not exceed validity term of Business License of the Parent Company.
