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Establishing a Representative Office of a foreign Logistics company in Vietnam
In the era of globalization, expanding business activities abroad is an important step to enhance the competitiveness and development potential of companies. Especially in the field of logistics, having a representative office in potential markets is essential to build relationships with local partners, customers and suppliers as well as to seize new business opportunities. In the article below, Siglaw would like to present the necessary procedures to establish a representative office of a foreign logistics company in Vietnam – one of the fastest growing logistics markets in the Asia – Pacific region.
What is a representative office of a foreign logistics company?
According to Clause 2, Article 44 of the Enterprise Law 2020, a representative office is a dependent unit of an enterprise, with the task of representing the interests of the enterprise under authorization and protecting those interests.
Logistics services are commercial activities in which a trader organizes the performance of one or more tasks including receiving goods, transporting, storing, storing, carrying out customs procedures, other paperwork, consulting customers, packaging, marking, delivering goods or other services related to goods as agreed by customers to receive remuneration.
Thus, it can be understood that a representative office of a foreign logistics company in Vietnam is a dependent unit of a foreign logistics company, established and operating commercially in Vietnam in accordance with the provisions of Vietnamese law or international treaties to which Vietnam is a member. The representative office of a foreign logistics company in Vietnam is intended to support and market the foreign logistics company and does not conduct any business or commercial activities or transactions. The representative office of a foreign logistics company in Vietnam also has the rights and obligations as prescribed by Vietnamese law.
Conditions and duration of the License to establish a representative office of a foreign logistics company in Vietnam
To be approved and granted a License to establish a representative office of a foreign logistics company in Vietnam, the trader must meet the following conditions:
Be established and operate in accordance with the laws of the country or territory that is a member of an international treaty to which Vietnam is a member or is recognized by these countries or territories;
Have been operating in the field for which the representative office is intended to be established for at least 05 years, from the date of establishment or registration;
For cases where the business registration certificate states the business term, at the time of applying for a license to establish a representative office of a logistics company in Vietnam, the remaining term on the business registration certificate must be at least 01 years.
The contents and activities of the representative office must be consistent with Vietnam’s open commitments in international treaties to which Vietnam is a member, consistent with Vietnam’s culture, customs and the business lines of the logistics company.
The license to establish a representative office of a foreign logistics company in Vietnam in particular and of foreign traders in general is 05 years (except for cases where the business registration license has a term)
Procedures and documents for establishing a representative office of a foreign logistics company in Vietnam
To establish a representative office of a foreign logistics company in Vietnam, the steps to be followed are as follows:
Prepare documents and apply for a license: After having the decision to establish a representative office in Vietnam, the foreign logistics company needs to prepare documents as required by the state management agency. The documents include:
+ Application for a license to establish a representative office according to the form of the Ministry of Industry and Trade signed by the authorized representative of the foreign trader;
+ A copy of the business registration certificate of the parent company or equivalent documents certified or consular legalized by the diplomatic representative agency or consulate of Vietnam abroad;
+ A copy of the audited financial report of the parent company in the most recent fiscal year or equivalent documents issued by a competent foreign authority to confirm and prove the existence and operation of the foreign logistics company in the most recent fiscal year;
+ Decision to appoint/recruit the head of the representative office;
+ A copy of the contract to lease or use the working location of the representative office;
+ A copy of the charter of the representative office;
+ A copy of the ID card/Passport of the head of the representative office.
These documents must be translated into Vietnamese and notarized according to regulations. After having all the documents, the foreign logistics company must submit the application to the Ministry of Industry and Trade to apply for a license to establish a representative office. The application processing time is about 07 working days.
Thus, we have presented the steps to establish a representative office of a foreign logistics company in Vietnam. Through that, customers can understand the legal requirements, conditions, administrative procedures and time needed to complete this position. Siglaw also hopes that the article will provide customers with useful knowledge to be able to expand their business in this vibrant and attractive logistics market.
Above is our advice for establishing a representative office of a foreign study abroad consulting company in Vietnam. If you have any questions. If you have any questions related to the establishment and operation of a representative office of a foreign study abroad consulting company in Vietnam, please contact Siglaw Law Firm for the most detailed answers!
