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Establishing a branch of a Chinese-invested company in Vietnam
Currently, businesses tend to develop not only within the territory of a country or a region but also desire to expand their branches to many countries and reach out to the whole world. These businesses, when wanting to open additional branches to conduct business activities in different countries, must comply with the regulations of the host country’s law.
So, establishing a branch of a Chinese-invested company in Vietnam means that a company established in China wants to open an additional branch in Vietnam. A branch of a Chinese-invested company in Vietnam is a subsidiary of the Chinese company, established and operating commercially in Vietnam in accordance with Vietnamese law.
Conditions for establishing a branch of a Chinese-invested company in Vietnam
A Chinese-invested company shall be granted a Branch Establishment License only if it meets the following conditions:
- First, the Chinese-invested company must be established and registered for business in accordance with the laws of a country or territory that is a party to an international treaty to which Vietnam is a party, or is recognized by the laws of such countries or territories;
- Second, the Chinese-invested company must have been in operation for at least 5 years, counted from the date of its establishment or registration;
- Third, in case the business registration certificate or equivalent document of the Chinese-invested company stipulates a term of operation, such term must be at least 1 year from the date of submission of the application;
- Fourth, the business activities of the branch must be consistent with Vietnam’s market-opening commitments under international treaties to which Vietnam is a party and must be consistent with the business lines of the Chinese-invested company;
- Fifth, in case the business activities of the branch are inconsistent with Vietnam’s commitments, the establishment of the branch must be approved by the Minister of the relevant specialized ministry.
Cases in which a Branch Establishment License for a Chinese-invested company shall not be granted:
- Failure to meet one of the conditions for establishing a branch of a Chinese-invested company in Vietnam;
- Within two years from the date of revocation of the Branch Establishment License in Vietnam;
- Cases where the establishment of a branch is restricted by law for reasons of national defense, national security, social order, safety, morality, and public health;
- And other cases as prescribed by Vietnamese law.
Validity Period of Branch Establishment License for a Chinese-invested Company:
The Branch Establishment License of a Chinese-invested company is valid for 5 years but shall not exceed the remaining validity period of the business registration certificate or equivalent document of the Chinese-invested company if such document stipulates a term.
Foreign investors may renew the Branch Establishment License upon expiration, except in cases of violations that lead to the revocation of the license as prescribed by law.
Notes for the head of a branch of a Chinese-invested company in Vietnam: The head of a branch of a Chinese-invested company is prohibited from concurrently holding the following positions:
- Head of a representative office of another foreign-invested company;
- Head of a representative office of the same foreign investor or Chinese-invested company;
- The legal representative of an economic organization established under Vietnamese law.
For any inquiries regarding the establishment of a branch of a Chinese-invested company in Vietnam, please contact Siglaw Firm for detailed advice.
Phone: (+84) 961 366 238
Email:
- vphn@siglaw.com.vn
- vphcm@siglaw.com.vn
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
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