On 10th March 2016, Decree No. 07/2016/ND-CP detailing Commercial Law regarding representative office and branch of foreign traders in Vietnam shall take effect.
In accordance with new regulation, conditions for branch and representative office of foreign trader established in Vietnam include:
Firstly, foreign trader must be lawfully established in compliance with the law of countries/territories who participating international Treaties to which Vietnam is a member, or be recognized by law of those countries/territories.
Secondly, foreign traders have been operating for at least 05 years in case establishing branch and for at least 01 year in case establish representative office since the date of establishment or registration. In case the business registration certificate or similar document specifies duration of operation, that time must remain at least 01 years from the date of submission.
Thirdly, business operation of branch and representative office must be consistent with market-opening commitments in the international treaties to which Vietnam is a member and in accordance with the business line of foreign trader;
Fourthly, in case business operation of branch is inconsistent with Vietnam's commitments or the foreign trader does not belong to countries/territories participated in the international treaties to which Vietnam is a member; the establishment of that branch must be approved by the Minister of specialized management.
Decree No. 07/2016/ND-CP replaces Decree No. 72/2006/ND-CP and repeals Article 2 of Decree 120/2011/ND-CP. Branches, representative offices of foreign traders have been granted Certificate of operation before 10th March 2016 shall continue the operation until the expiry of that Certificate of operation.
Vietthink News