The biggest difference between foreign invested company (FIC) and Representative Office is that, the Representative Office (RO) is not allowed to conduct business activities for profit purpose. On the other hand, the FIC is allowed to conduct these activities.
Question: Is the Representative Office (RO) a kind of legal entity ? What is main function of the Representative Office (RO)? Could you please also let us know the fees and requirements to set up the RO?
Answer: RO is a kind of Legal Entity. Furthermore, validity term of RO License is 05 years only.
Main function of RO is (i) Operate as contact office of the Company in Vietnam; (ii) Promote cooperation projects of the Company in Vietnam; (iii) Research market to push up chances to purchase commodities, supply and consume commercial services of the Company in Vietnam; (iv) Supervise implementation of the Company’s contracts signed with Vietnamese partners or related to Vietnam market
Our fee for setting up R.O in Vietnam shall be 1,375USD and about 450USD expense for translation of documents from English into Vietnamese.
This range of fee shall be not applicable to R.O of Education Institution, Law Firm, Securities Company, Commercial Bank, Tourist Company, Insurance Company, Financial Company.
In order to setup R.O, Client must prepare (i) Office Lease Contract, (ii) Certificate of Incorporation of Parent Company, (iii) Audited Financial Statement of Parent Company for the most recent year; (iv) Corporate Charter of Parent Company; (v) Passport of person appointed as Chief of Representative Office in Vietnam.
Please be noted that documents for RO must be notarized and legalized.