Can a new foreign trader be granted a License to establish a Representative Office in Vietnam?

Can a new foreign trader be granted a License to establish a Representative Office in Vietnam?

Conditions for granting a License to establish a Representative Office are specified in Clause 2, Article 7 of the Decree 07/2016/ND-CP as follows:

Conditions for granting a License to establish a Representative Office

Foreign traders are granted a License to establish a Representative Office when meeting the following conditions:

1. Foreign traders are established and registered for business in accordance with the laws of countries and territories participating in international treaties to which Vietnam is a member or recognized by the laws of these countries and territories;

2. Foreign traders that have been operating for at least 01 year from the date of establishment or registration;

3. In case the Business Registration Certificate or equivalent document of a foreign trader stipulates an operating term, that term must be at least 01 year from the date of application;

4. The operational content of the Representative Office must be consistent with Vietnam’s commitments in international treaties to which Vietnam is a member;

5. In case the operational content of the Representative Office is not consistent with Vietnam’s commitments or the foreign trader does not belong to a country or territory participating in an international treaty to which Vietnam is a member, the establishment of a Representative Office must be approved by the Minister or Head of the ministerial-level agency with specialized management (hereinafter referred to as the Minister of specialized management).

According to regulations, to be granted a License to establish a Representative Office in Vietnam, a foreign trader must have been operating for at least 1 year from the date of establishment or registration.

Thus, in cases where foreign traders have been operating for less than 1 year, they are not eligible to be granted a License to establish a Representative Office in Vietnam.

How long is a license to establish a representative office in Vietnam for a foreign trader?

Duration of License to establish Representative Offices is specified in Clause 1, Article 9 of Decree 07/2016/ND-CP as follows:

Duration of License to establish Representative Offices, License to establish Branches

1. The License to establish a Representative Office or the License to establish a Branch of a foreign trader has a term of 05 years but does not exceed the remaining term of the Business Registration Certificate or documents of equivalent value of the foreign trader in case those documents have regulations on the term.

2. The term of the Representative Office Establishment License or Branch Establishment License is re-issued equal to the term of the previously issued License.

3. The term of the Representative Office Establishment License and Branch Establishment License is extended as prescribed in Clause 1 of this Article.

Thus, according to regulations, the License to establish a Representative Office in Vietnam of a foreign trader has a term of 05 years but does not exceed the remaining term of the Business Registration Certificate or documents of equivalent value of the foreign trader in case those documents have regulations on the term.

What is the fee for granting a license to establish a representative office in Vietnam for foreign traders?

The fee for granting a license to establish a representative office in Vietnam is specified in Article 4 of Circular 143/2016/TT-BTC as follows:

The fee rate fee

1. The fee rates for licensing the establishment of representative offices of foreign trade promotion organizations and foreign traders in Vietnam are as follows:

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

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

2. Fees for licensing the establishment of representative offices of foreign trade promotion organizations and foreign traders in Vietnam are collected in Vietnam Dong (VND).

At the same time, based on Clause 1, Article 3 of Circular 143/2016/TT-BTC stipulates:

Fee collection organizations

1. The state management agency competent to issue licenses to establish representative offices of foreign trade promotion organizations in Vietnam (Trade Promotion Department under the Ministry of Industry and Trade) according to the provisions of Decree No. 100/2011/ND-CP dated October 28, 2011 of the Government regulating the establishment and operation of representative offices of foreign trade promotion organizations in Vietnam is responsible for organizing the collection and payment of licensing fees. License to establish representative offices of foreign trade promotion organizations in Vietnam according to the provisions of this Circular.

Thus, according to regulations, the fee for granting a license to establish a representative office in Vietnam for foreign traders for new issuance is 3,000,000 (three million) VND/license.

In case of re-issuance, amendment, supplement, or extension, it is 1,500,000 (one million five hundred thousand) VND/license.

The Department of Trade Promotion under the Ministry of Industry and Trade is the agency responsible for organizing the collection and payment of fees for licensing the establishment of representative offices of foreign traders.