Question: Our company would like to close the foreign representative office in Vietnam. Please quote.
Answer:
We understand that your company in abroad (hereinafter referred to as “Client”) is now considering closing its Representative Office in Hanoi, Vietnam (hereinafter referred to as “RO”). We therefore would like to send herewith our legal service proposal for your kind consideration.
1. OUR COMMENTS
Under the Vietnam’s Decree No. 76/2016/ND-CP of the Government stipulating details of the Commercial Law on representative office and branch of foreign traders in Vietnam, the representative office can be terminated pursuant to the proposal of the Foreign Trader.
Before closing Representative Office, Client shall be required to finalize and pay all the taxable, financial obligations to Vietnamese state to close the tax code of RO (if any), paying all personal income tax of the RO chief and all staffs, liquidating all employment contract and other contracts such as office leasing contract, the contract with some suppliers (if any) and pay all outstanding debts (if any). Depending on current number of employees, cash transactions and completion of accounting paper work of the Representative Office, it shall take you from 2-6 months to clear all tax and social insurance issues. In complicated cases, it may take more time to settle tax issues.
2. SCOPE OF WORKS
Our services in this regard will include:
|
SCOPE OF SERVICES |
| Preparation of the application documents:
· Notifying application documents required in accordance with Vietnamese law; · Working with Tax Agency to resolve pending matters regarding to Tax burden and loss of Seal Sample of Representative Office under Vietnam Law; · Drafting application documents required for submission purpose in English language; · Liaising with you to discuss the draft application documents; · Amending the application documents based on your comments; · Obtaining preliminary comments from the licensing authority on the draft application documents; · Finalizing the application documents following comments from the licensing authority; and · Translating the final version of the application documents into Vietnamese for execution. |
| Licensing procedures:
· Submitting the application dossier to the licensing authority on your behalf; · Monitoring and following up with the relevant authorities on the approval process; · Keeping you updated on the developments and additional requirements, if any; and · Assisting you in obtaining final result from Competent Authorities |
3. DELIVARABLES
The Deliverables will include documents prepared in Vietnamese and English as required for submission to licensing bodies.
4. PROFESSIONAL FEE
The Total price for performing the SB Law services as mentioned in item 2 above will be
3,960USD (Three thousand and nine hundred and sixty US Dollar). This fee is exclusive of:
- Actual cost for translating documents issued by foreign competent authorities or other internal documents etc provided by Client from English into Vietnamese (10USD/150 words);
- Governmental fee including tax obligation, penalty or sanction incurred on Client behalf (if any); and
- VAT (10% of our professional fee).
