Representative office in Vietnam: Essential updates

Foreign companies with representative offices in Vietnam must ensure that their representative office (RO) license is always up to date. Otherwise, they face high fines and business activities will be hindered. The Ecovis experts explain the updating process and which documents are required.

In which cases must changes be registered

According to Vietnam’s Law on Commerce and Decree No. 07/2016/ND-CP, foreign businesses are responsible for updating their RO license with the competent authority in the following cases:

1. If the parent company’s name, headquarters address, or scope of activities changes, corresponding updates must be made to the RO license in Vietnam to ensure compliance with local regulations.
2. If the chief representative of the RO is replaced, or if their identification documents (e.g., a new passport or updated residence address) are changed, the RO license must be revised to reflect these updates.
3. Any changes to the RO’s name, scope of activities, or registered address within the same province, city, or geographical area under a management authority’s jurisdiction require adjustments to the existing license.

How to register changes to the representative office license

Step 1: Gather the required documents: The specific documents needed depend on the type of change, but may include:

• A written request for adjustment of the RO license
• Updated corporate documents from the parent company (e.g., new registration certificates, lease agreements)
• Proof of the new address (for both the parent company and/or RO)
• Updated identification documents for the chief representative, if applicable
• Translated, notarised and consular certified copies of documents issued overseas

Step 2: Submit the application: Submit the application to the licensing authority (Department of Industry and Trade)

Step 3: Receive the updated RO license: The licensing authority should proceed with the adjustment of the RO license and issue the results within 5 to 15 working days from the date of receipt of a complete and valid application.

Businesses should be aware that the deadline for registering any changes that require an update to the RO license is 60 days from the date of the change.

Consequences of non-compliance

Failure to update the RO license could harm the business’s reputation with regulatory authorities, partners and clients in Vietnam. More importantly, failing to update the RO license constitutes a legal violation subject to administrative fines ranging from VND 20,000,000 to VND 40,000,000 (VND 20,000,000 is the equivalent of around EUR 764 or USD 795).

Resource: https://www.ecovis.com/global/representative-office-in-vietnam-essential-updates/