Can a Newly-Operating Foreign Trader Obtain a Representative Office License in Vietnam?

Can a newly-operating foreign trader be granted a License for the establishment of a Representative Office in Vietnam?

The conditions for granting a License for the establishment of a Representative Office are prescribed in Clause 2, Article 7 of Decree 07/2016/ND-CP as follows:

Conditions for granting Licenses for the establishment of Representative Offices

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A foreign trader shall be granted a License for the establishment of a Representative Office when satisfying the following conditions:

1. The foreign trader is established and registered for business in accordance with the laws of the country or territory participating in an international treaty to which Vietnam is a party, or is recognized by the laws of such countries or territories;

2. The foreign trader has operated for at least 01 year from the date of establishment or registration;

3. Where the Business Registration Certificate or equivalent document of the foreign trader prescribes an operating term, such term must have at least 01 year remaining from the date of dossier submission;

4. The operating contents of the Representative Office must be consistent with Vietnam’s commitments in international treaties to which Vietnam is a party;

5. Where the operating contents of the Representative Office are inconsistent with Vietnam’s commitments or the foreign trader is not from a country or territory participating in an international treaty to which Vietnam is a party, the establishment of the Representative Office must be approved by the Minister or Head of the ministerial-level agency in charge of the specialized field (hereinafter collectively referred to as the Minister of the specialized managing ministry).

Under the regulations, to be granted a License for the establishment of a Representative Office in Vietnam, a foreign trader must have operated for at least 01 year from the date of establishment or registration.

Thus, a foreign trader that has operated for less than 1 year does not satisfy the conditions to be granted a License for the establishment of a Representative Office in Vietnam.

What is the validity term of a License for the establishment of a Representative Office in Vietnam of a foreign trader?

The validity term of a License for the establishment of a Representative Office is prescribed in Clause 1, Article 9 of Decree 07/2016/ND-CP as follows:

Validity term of Licenses for the establishment of Representative Offices and Branches

1. Licenses for the establishment of Representative Offices and Branches of foreign traders have a validity term of 05 years but shall not exceed the remaining term of the Business Registration Certificate or equivalent document of the foreign trader where such document prescribes a term.

2. The validity term of a re-issued License for the establishment of a Representative Office or Branch shall equal the validity term of the previously issued License.

3. The validity term of an extended License for the establishment of a Representative Office or Branch shall be implemented as prescribed in Clause 1 of this Article.

Thus, under the regulations, a License for the establishment of a Representative Office in Vietnam of a foreign trader has a validity term of 05 years but shall not exceed the remaining term of the Business Registration Certificate or equivalent document of the foreign trader where such document prescribes a term.

What is the fee for granting a License for the establishment of a Representative Office in Vietnam of a foreign trader?

The fee for granting a License for the establishment of a Representative Office in Vietnam is prescribed in Article 4 of Circular 143/2016/TT-BTC as follows:

Fee rates

1. The fee rates for granting Licenses for the establishment of Representative Offices of foreign trade promotion organizations and foreign traders in Vietnam are as follows:

a) New issuance: VND 3,000,000 (three million) per license;

b) Re-issuance, amendment, supplementation, extension: VND 1,500,000 (one million five hundred thousand) per license.

2. The fee for granting Licenses for the establishment of Representative Offices of foreign trade promotion organizations and foreign traders in Vietnam shall be collected in Vietnamese Dong (VND).

At the same time, pursuant to Clause 1, Article 3 of Circular 143/2016/TT-BTC:

Fee-collecting organizations

1. The competent state management agency granting licenses for the establishment of Representative Offices of foreign trade promotion organizations in Vietnam (the Trade Promotion Agency under the Ministry of Industry and Trade) as prescribed in Decree No. 100/2011/ND-CP dated October 28, 2011 of the Government on the establishment and operation of representative offices of foreign trade promotion organizations in Vietnam shall be responsible for collecting and remitting the fee for granting licenses for the establishment of Representative Offices of foreign trade promotion organizations in Vietnam as prescribed in this Circular.

Thus, under the regulations, the fee for granting a License for the establishment of a Representative Office in Vietnam of a foreign trader is VND 3,000,000 (three million) per license for new issuance.

For re-issuance, amendment, supplementation and extension, the fee is VND 1,500,000 (one million five hundred thousand) per license.

The Trade Promotion Agency under the Ministry of Industry and Trade is the agency responsible for collecting and remitting the fee for granting Licenses for the establishment of Representative Offices of foreign traders.