In the era of deep economic integration, many foreign enterprises choose to establish a Branch in Vietnam as a strategic step to expand operations, generate direct revenue, and access the market professionally.
Unlike a Representative Office, which is limited to promotional functions, a Branch allows foreign companies to conduct business activities, sign contracts, and generate revenue aligned with the parent company’s industry. At Toplaw, we provide comprehensive legal support to help foreign investors navigate the conditions, documentation, and procedures for a successful launch in Vietnam.
What is a branch of a foreign company in Vietnam?
A Branch is a dependent unit of a foreign merchant, established and operated in Vietnam under Vietnamese law or international treaties to which Vietnam is a member. The foreign company holds full legal responsibility for all activities conducted by its Branch in Vietnam.
Rights and Obligations
Rights:
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Rent headquarters, purchase necessary equipment, and recruit local or foreign labor.
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Execute contracts in Vietnam consistent with the scope of the Branch license.
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Open VND and foreign currency bank accounts in Vietnam.
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Remit profits abroad in accordance with Vietnamese law.
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Conduct trading and commercial activities as permitted by the license.
Obligations:
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Maintain accounting systems compliant with Vietnamese standards (or other approved common standards).
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Submit periodic activity reports and fulfill all tax obligations under Vietnamese law.
Why establish a branch?
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Direct Revenue Generation: Directly sign contracts and issue invoices.
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Simplified Corporate Structure: No need to establish a separate legal entity like a subsidiary.
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Leverage Parent Brand: Directly use the prestige and financial capacity of the parent company.
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Centralized Control: Maintain direct management over business strategy and finances.
Key conditions for establishment
To be granted a Branch License, the foreign merchant must:
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Be legally registered in a country/territory participating in international treaties with Vietnam.
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Have been in operation for at least 05 years since registration.
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Have a remaining business registration term of at least 01 year.
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Ensure business activities align with Vietnam’s market access commitments.
Setting up a Branch in Vietnam requires not only legal compliance but also a deep understanding of local administrative procedures. Toplaw proudly offers comprehensive legal services to assist foreign companies in establishing their presence smoothly and efficiently.
We handle everything from initial consultation, document preparation, and licensing to post-establishment compliance. Let us be the solid legal foundation for your sustainable growth in Vietnam.