A Representative Office (RO) offers a low-cost entry for companies seeking to gain a better understanding of the Vietnamese market. As such, this option is among the most common for first-time entrants to the Vietnamese market and often precedes a larger presence within the country.
What are ROs permitted to do?
ROs are permitted to engage in the following activities:
Conducting market research;
Acting as a liaison office for its parent company;
Promoting the activities of its head office through meetings, and other activities, that leads to the business at later stages.
Representatives offices are dependent on their parent company and are not allowed to generate their own profits or enter directly into contracts. They are also not allowed to issue invoices.
What do you need to get a license?
Pre-licensing checklist for setting up an RO:
File an application for setting up an RO with company chop or seal;
Appointment letter of Chief of RO with identification documents and company seal;
Power of attorney in favor of consultant to submit the application dossier;
Certificate of Incorporation for the Company and/or Business Registration Certificate of the Company;
Audited financial report of the company for the latest fiscal year;
Memorandum of Understanding (MoU) of leasing office or leasing contract;
Documents providing legal rights of landlord regarding the right of the leasing office.
For steps 1 to 6, the foreign entity would require one notarized and consularized copy of each document and a translated copy in Vietnamese by a Vietnamese competent authority.
A signed leasing contract is also required before registering an RO in Vietnam
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