With rapid economic development and a favorable investment environment, Vietnam is increasingly attracting the interest of international businesses and foreign traders. In this context, establishing a representative office in Vietnam is an appealing opportunity to expand business scale and enter new markets. Indeed, numerous clients from around the world have expressed their strong desire to access the Vietnamese market and engage in trade promotion activities through the establishment of representative offices.
First and foremost, foreign traders must clearly understand the conditions and legal regulations related to the establishment of a representative office in Vietnam. Leveraging years of experience providing in-depth legal advice on corporate and investment issues both domestically and internationally, SB Law offers the following information to support our clients:
Conditions for Establishing a Representative Office of Foreign Traders in Vietnam:
- Foreign traders must be established and registered for business in accordance with provisions of laws of countries or territories being parties to treaties to which Vietnam is a signatory or is recognized by the aforesaid countries or territories;
- Foreign traders must have come in operation for at least 1 year from the date of establishment or registration;
- The remaining operating period must be at least 1 year from the date of submitting the application for a representative office establishment license;
- The scope of activities of the representative office must comply with Vietnam's commitments in international treaties to which Vietnam is a member.
Duration of the Establishment License for a Representative Office of Foreign Traders in Vietnam:
- The duration is 5 years but not exceeding the remaining duration of the foreign trader's business registration certificate if such document has a specified term;
- The license can be renewed.
Scope of Activities of the Representative Office:
- Perform the function of a liaison office;
- Conduct market research;
- Promote business investment opportunities of the trader it represents, excluding sectors where the establishment of a representative office is regulated by specialized legal documents.
In general, the representative office of a foreign trader in Vietnam does not have legal personality and is not allowed to engage in profit-generating transactions, but only to perform functions such as liaising with partners/clients, conducting market research, and promoting business investment opportunities for the trader it represents.
SB Law's Legal Consultation and Support Services:
Establishing a representative office in Vietnam for foreign traders is a complex process but provides significants growth opportunities. To ensure success, understanding the legal regulations and adhering to the correct procedures is essential. SB Law is always ready to support and advise foreign traders throughout this process, ensuring their operations run smoothly and effectively.
More specifically, we assist clients in preparing documents, representing clients in fully executing and closely monitoring the necessary procedures when submitting applications to competent authorities, obtaining operation licenses, and registering seals, as well as consulting on related legal aspects with a service fee from 2,000 USD (excluding VAT).
With extensive experience, SB Law is dedicated to ensuring client satisfaction and success in expanding their business operations in Vietnam. Let us be your partner in navigating this promising market.
