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Establishing a Branch of a Singaporean Company in Vietnam
Singapore is a country with a developed economy and is the origin of many multinational companies across various sectors. These companies play a crucial role not only in Singapore’s economy but also in the economies of markets outside of Singapore. Due to the need to expand their markets, many Singaporean-invested companies seek to establish branches in other countries, including Vietnam. Below, Siglaw presents the issues that Singaporean-invested companies need to consider when establishing a branch in Vietnam:
Conditions for Granting a License to Establish a Branch of a Singaporean Company in Vietnam
According to Article 8 of Decree 07/2016/ND-CP, foreign companies in general, and Singaporean-invested companies in particular, must meet the following conditions when establishing a branch in Vietnam:
- The company must be established and registered in accordance with Singaporean law and recognized by Singaporean law;
- It must have been operating for at least 5 years from the date of establishment or business registration;
- In the case of a Singaporean-invested company operating in a sector with a limited business duration, the duration on the business registration certificate or equivalent documents must have at least 1 year remaining from the date of submission of the application;
- The content and operating charter of the branch must be consistent with the commitments between Vietnam and Singapore and aligned with the business sectors of the company seeking to establish a branch in Vietnam.
Documents for Establishing a Branch of a Singaporean Company in Vietnam
According to Article 12 of Decree 07/2016/ND-CP, when there is a need to establish a branch of a Singaporean company in Vietnam, the following documents must be prepared:
- Application for a Branch License according to form MĐ-5 issued by the Ministry of Industry and Trade in Circular 11/2016/TT-BCT, signed by an authorized representative of the Singaporean trader;
- Business registration certificate or equivalent document certified or legalized by the Vietnamese diplomatic mission or consulate abroad (copy);
- Document from the Singaporean-invested company appointing/designating the head of the branch in Vietnam (with notarized translation);
- Application for a Branch License according to form MĐ-5 issued by the Ministry of Industry and Trade in Circular 11/2016/TT-BCT, signed by an authorized representative of the Singaporean trader;
- Business registration certificate or equivalent document certified or legalized by the Vietnamese diplomatic mission or consulate abroad (copy);
- Document from the Singaporean-invested company appointing/designating the head of the branch in Vietnam (with notarized translation);
Procedure for Establishing a Branch of a Singapore Invested Company in Vietnam
After preparing the necessary documents, the Singaporean invested company can submit the application either directly or by mail to the Ministry of Industry and Trade. Within 3 working days from the date of receiving the application, the Ministry will review it and request additional documents if the application is incomplete or invalid. During the processing of the application, requests for supplementary documents may only be made once.
Within 7 working days from the date of receiving a complete and valid application, the Ministry will issue a Branch License for the Singaporean invested company in Vietnam or provide written reasons for refusal in the case of a denial.
Duration of the Branch License for a Singapore Invested Company in Vietnam
According to Clause 1, Article 9 of Decree 07/2016/ND-CP, the license for establishing a branch of a foreign trader will have a duration of 5 years. In cases where the foreign company’s business registration certificate specifies a business duration, the license for the branch in Vietnam shall not exceed the remaining duration of the business registration certificate.
The above outlines the issues that a Singaporean company should consider when intending to establish a branch in Vietnam. If you have any questions related to the establishment of a branch of a Singaporean invested company in Vietnam, please contact Siglaw Firm for detailed assistance!
Contact details:
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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