Question: We are FDI company and is now seeking legal advices for closing its Branch Office in Da Nang, please advise/
Answer: We understand thatyour company (hereinafter referred to as “Client”) is now seeking legal advices for closing its Branch Office in Da Nang (hereinafter referred to as “Branch Office”).
We therefore are grateful to present you our Legal Services Proposal for your review and consideration
Under the Vietnam’s Enterprise Law 2015, the Branch Office of an Enterprise can be terminated in accordance with decision of the Enterprise.
In order to close Branch Office, Client must prepare:
• Resolution on closing Branch Office;
• List of creditors and outstanding debts, including outstanding tax, social insurance pay;
• List of employee and plan of use of employee;
• Investment Certificate of the Branch Office;
• Seal sample of the Branch Office.
Within 05 working days from submission of application dossier to the competent authority, the Branch Office shall be closed.
At this time, as Vietnam’s Enterprise Law 2015 has just come into effect and until now there have been no further guidance on this matter yet, competent authority may be cautious in proceeding with application dossier for closing branch office.
However, according to our practical experience, for prudential, Client should be carefully take account following matters:
- Liquidating Factory Lease Contract in Da Nang Province for the Branch Office;
- Settling all outstanding tax obligations and social insurance pay with competent authority in Da Nang Province;
- With respect to redundant employees working for the Branch Office, Client must have good plan of use of employee in order to avoid legal exposure.
If you would like further information on Legal advice for closing its Branch Office in Da Nang, please either email to our Partners at: info@sblaw.vn or call to our Office:
Ha Noi Office: +84 (4) 62 62 0246
HCM Office: +84 (8) 35 208 101.
