What are the conditions for a company or an enterprise to establish a branch? What are notes on establishment of a branch? This article will help you answer these questions

After numerous achievements in business at an area, many companies wish to establish more branches at other different areas to increase scale and revenue. However, this action also needs a lot of procedures and notes on the establishment of a branch.

Conditions for a company or an enterprise to be allowed to established a branch

A branch is a unit dependent on the parent company and has functions as a small company to perform part or all of the general company’s work. However, the branch of a company does not have the legal status and only operates based on the registered content, according to the regulations of the parent company.

Are there any notes on setting up a branch? To start a branch, companies and businesses need to have the following conditions:

  • The company had a business code, business line that matches the code and coincides with the economic industry code system as prescribed.
  • Address of corporate headquarters must be under the legal ownership of the enterprise
  • The business lines of the enterprise match the Vietnamese industry code system.

Notes on the establishment of a branch

In order to set up a branch of a company, enterprises need to know the notes for establishing a branch to avoid risks and legal obstacles during the operation.

Naming the branch of the company

  • The branch’s name of the company must be named with the letters in the Vietnamese alphabet,the letters Z, W, J, F, numbers and symbols.
  • When an enterprise registers a branch, it should include the word “branch” attached. In addition, foreign names or abbreviations of the branch (if any) can be registered.
  • Thename of the branch must be located at the branch office.

Head office of the company

  • One of the notes for establishing a branch is that when registering the company’s headquarters, the enterprise is not allowed to register addresses like apartments and collective houses.
  • The address of the branch when registering should be specific: alley, lane / niche, number or village, commune / ward, district/province/city.

Operating fields, business lines of the company’s branch

  • A branch must perform all or part of its parent company’s functions including authorized representatives.
  • One of the notes for establishing a branch is that the business line of the branch must match with the business line of the parent company.

The leader of branch

The leader of the branch is responsible for representing the branch, managing all activities of the branch and is appointed by the company or business.

The following cases will not be appointed as branch leader

  • Government officials and employees.
  • Officers, non-commissioned officers or National Defense workers.
  • Leading and managing officials of State-owned enterprises.
  • Person with limited civil capacity, without legal status. Minors.
  • Person serving imprisonment sentences, being examined for penal liability and person being administratively sanctioned atdetoxication establishments.

SB Law – a trusted address for law and legal advice

The above is the most specific and useful information, the notes for establishing a branch for businesses that are intending to start a branch. For legal advice in general and business law in particular, you can contact SB Law.

SB Law has a wide range of activities: Contract consulting, intellectual property, foreign investment, real estate, stock, litigation …. With many years of experience working with a team of lawyers, the leading law consultants, we will give clients the most optimal measures.

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