Information to know when establishment of a representative office

Vietnam is a country that attracts a large number of investment funds abroad. More and more companies and multinational corporations appear, which means that the number of representative offices is also increasing. So when establishment of a representative office in Vietnam, what information should businesses pay attention to? Let's find out through the article below.

What activities does a representative office include?

For a representative office, the main activities include:

Firstly, Do not participate in activities with the purpose of making direct profits in Vietnam but are allowed to promote trade in accordance with the law.

second, it is not allowed to amend or supplement the signed contract, except in special cases where a lawful power of attorney is required.

Third, sign contracts in the following cases: Lease, purchase necessary equipment, lease office, recruit …

Tax-related procedures

Personal income tax for representative office employees: According to the provisions of Article 24 of Circular 111/2013/TT-BTC, representative offices are responsible for taxing income from salaries and wages of employees. working at the representative office.

License tax: In case a representative office has the function of representation and marketing but does not have the function of production and business, it is not required to pay this tax.

For the issue and use of invoices: Since there is no income from selling goods and providing services, there is no need to issue and use invoices.

Tax declaration: In case of being taxed, the representative office is responsible for submitting the invoice.

Change representative office

When the contents recorded in the industrial and commercial registration or the business contents of a representative office change, the representative office needs to carry out procedures for change in accordance with law.

Representative office sign

When establishing a representative office, a signboard must be planted there. The signboard should have the following information: office name, head office address, governing body, phone number.

Report on representative office activities

Every year, a representative office must make an official report on its activities to the Ministry of Industry and Trade before January 30. At the same time, a representative office must also be accountable at the request of a competent authority. permission.

Person in charge of representative office

This is the person responsible for the operation of the representative office within the authorized scope, this person can be a foreigner or a Vietnamese person.

The above is the necessary information that businesses need to master when establishment of a representative office in Vietnam, hopefully the above information will help you more convenient in the process of establishing a representative office. Any questions please contact us, we are always ready to answer your questions.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.