A Representative Office (RO) in Vietnam is a legal entity that allows foreign businesses to establish a presence in the country without engaging in direct commercial activities. It is ideal for companies looking to conduct market research, build business relationships, and oversee local operations without the complexities of setting up a full-fledged company. Benefits of Establishing a Representative Office Setting up a Representative Office in Vietnam offers several advantages, including: Market Exploration: Helps businesses study market conditions before making larger investments. Cost-Effective Presence: Requires lower operational costs compared to a full subsidiary or branch. Brand Establishment: Enhances credibility and brand recognition in Vietnam. Administrative Support: Enables foreign companies to oversee local partners and suppliers. No Corporate Income Tax: Since ROs do not generate revenue, they are exempt from corporate income tax. Key Functions of a Representative Office While ROs in Vietnam cannot engage in profit-generating activities, they can: Conduct market research and promotional activities. Liaise and coordinate with headquarters and local partners. Provide customer support and after-sales services. Supervise the implementation of contracts signed by the parent company. Requirements for Setting Up a Representative Office in Vietnam To establish an RO, foreign businesses must meet the following requirements: The parent company must have been operational for at least one year. A legal representative must be appointed to manage the RO. A lease agreement for the office location in Vietnam. Steps to Set Up a Representative Office in Vietnam Step 1: Prepare the Required Documents Application form for establishing an RO. Certificate of Incorporation of the parent company (notarized and legalized). Financial statements or audited reports from the parent company. Passport/ID of the head of the RO. Office lease agreement. Step 2: Submit Application to the Department of Industry and Trade (DOIT) The application is submitted to the Department of Industry and Trade (DOIT) in the province where the RO will be based. Approval typically takes 7-10 working days. Step 3: Obtain the RO License Once approved, the company receives an RO Establishment License, valid for five years, with the option for renewal. Step 4: Register the RO with Tax Authorities Although ROs do not pay corporate taxes, they must register with the local tax department to obtain a tax identification number. Step 5: Open a Bank Account and Hire Employees Open a corporate bank account for operational expenses. Register employees for social insurance and comply with labor laws. Compliance and Legal Obligations ROs must adhere to the following regulations: Submit annual operation reports to the DOIT. Maintain proper employee contracts and social insurance contributions. Renew the RO license before expiration. Why Choose Our Services? We provide expert assistance in establishing Representative Offices in Vietnam, including: Consultation on legal and compliance matters. Assistance with document preparation and submission. Post-registration support, including tax and employment services.
