ESTABLISHMENT OF BRANCH
A branch is a dependent unit of an enterprise, responsible for performing all or part of the enterprise’s functions, including the function of authorized representation.
The advantage of establishing a branch is that the branch can operate business like the parent company, has the right to register its own seal, and sign economic contracts on behalf of the parent company. Branches can also declare and pay taxes separately as an independent unit if they register as an independent accounting branch.
Notify the establishment of a branch to the Provincial Business Registration Office where the branch is located. The content of the notice includes:
- Business code;
- Name and address of the company’s headquarters;
- Name of branch intended to be established:
Branch names must be written with letters in the Vietnamese alphabet, letters F, J, Z, W, numbers and symbols.
The name of the branch or representative office must bear the business name along with the phrase “Branch”.
The branch name must be written or posted at the branch headquarters.
The branch name is printed or written in smaller font size than the Vietnamese name of the enterprise on transaction papers, documents and publications issued by the branch.
Branch headquarters address;
- Similar to the company headquarters, the registered address of the branch’s headquarters cannot be a dormitory or apartment building. If it is a private house with a number of rooms, it is also necessary to provide a certificate of land use rights (red book, pink book). In addition, to serve the post-establishment activities of the branch, especially related to procedures for issuing value-added invoices of the branch, when the company rents a house or office as the branch’s headquarters, The company needs to request the lessor to provide:
- Renting room contract,
- Certificate of land use rights (red book, pink book) from the leasing office.
- Copy of ID card and household registration of the lessor
Content and scope of branch operations:
The branch’s business line must match the company’s business line.
Therefore, for business branches in professions that require a practicing certificate, the unit must ensure the conditions for the practicing certificate during the operation of the business.
Information of branch heads and legal representatives of the company
Information on full name, place of residence, ID card or passport number or other legal personal identification of the branch head;
Full name and signature information of the legal representative of the enterprise.
Written decision and copy of meeting minutes of the Board of Members for limited liability companies with two or more members, of the company owner or the Board of Members or the President of the company for companies Limited liability of one member, of the Board of Directors for joint stock companies, of general partners for partnerships regarding the establishment of branches;
Valid copy of the decision to appoint the head of the branch;
Valid copy of one of the personal identification documents of the branch head:
For the head of the branch who is Vietnamese: Provide a notarized copy of the Identity Card or Citizen Identification Card or Passport;
For foreign branch heads: Provide notarized copies of Passport and Temporary Residence Card;
Authority to issue branch establishment licenses
Submit documents and receive results at the one-stop department of the Provincial/City Business Registration Office where the branch is located.
Publish information on the national national information portal
After the branch receives the Operation Certificate, the enterprise must send branch operation registration information to the tax authority and submit an initial tax declaration if the branch is located in another centrally-run city or province. In addition, every quarter, the branch must also declare Value Added Tax on the branch’s revenues and expenditures.
The legal representative of the enterprise must be responsible for registering changes in the content of the Branch Operation Registration Certificate within 10 days from the date of establishment of the branch.
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