Representative office issues


Question: Our company want to employ one people in Vietnam for liaison/ seeking business opportunity.

Is it necessary for us to set up a RO for this purpose?

What are the details we need to beware if we need to set up a RO/hiring people(i.e. employment contract(MOLISA), tax issues (Personal Income Tax), social insurance, health insurance, unemployment insurance)?

If we do not need to set up a RO, what will we need to do for employee’s PIT (how to report tax authority?)?

As I know Vietnam has foreign exchange control, what will be the details of this policy?

Please provide an answer which suits our situation.

Thank you for your attention. Looking forward to your reply.

Answer: This is reference to your conversation below. Please find our comments here under:

– You do not need to setup a R.O in Vietnam to employ one people in Vietnam for seeking business opportunity. In this case, you should enter into a service agreement with him/her. Then, base on such contract, he/she can invoice your company for payment to his/her account in Vietnam. He/she shall be liable to declare and pay his/her PIT under Vietnam Law.

Vietnam on Foreign Exchange does not prohibit you from making payment to a Vietnamese Citizen. You can remit him/her by USD and the bank shall be liable to exchange from USD into VND in accordance with exchange rate announced on the payment date.