News

Guidelines on Resident Representative Offices

If you are an entrepreneur or a potential investor then you are probably interested in investing and starting doing business in Vietnam. Nonetheless it is highly possible that you do not know yet what you can do and whether you will be able to realise your project or not.

If indeed you wish to do business in Vietnam, but you are not yet confident about how to do it because of the numerous differences in business environment, culture, habits, people and laws that you probably do not understand yet, a safe and easy way to start official operations will be to establish a Resident Representative Office (RRO).

With its scope of operations, a Resident Representative Office will allow your company to explore the Vietnamese market in-depth, to find potential partners and distributors, to conduct market studies and to do marketing campains, and finally to have a stable and official point of contact in Vietnam.

To be more specific, let us remind you about article 30 of the Decree No.07/2016/ND-CP:

"Detailed regulations on establishment of representative offices or branches of foreign traders in Vietnam under laws on commerce" of the Ministry of Trade and Industry stipulates that "The operation of a representative office shall be solely confined to the conduct of liaison activities, market research, and promotion of its head office’s businesses, excluding services the establishment of representative office in which is specified in specialized legislative documents".

In terms of requirements, establishing a RRO is very easy and it is a budget-friendly first step on the Vietnamese market, but you have to remember one important thing: your company must have been in operations for at least one year in your country before establishing the RRO – THIS IS A MUST!

After providing Viet Australia Auditing Ltd. with the required documents, it will take us from three to four weeks to obtain the Resident Representative Office license and it will lead you to start the next step: fulfill thirteen initial compliance requirements to enable your representative office to function in a law-abiding way.

Viet Australia will be here to support you with all the procedures and requirements that are needed to start operations of your RRO, but did you know that we can also participate in the operations of your Representative Office and help you to save time and money?

Indeed, in order to function properly a RRO will need to have bookeeping, to declare personal income tax (PIT), to have payrolls, to have social, medical and unemployment insurance, to enter contracts with new employees, to register employees at the Labour Department and to submit an annual activity report.

VIET AUSTRALIA AUDITING LTD. WILL DO ALL OF THAT FOR YOU!

People that do not yet know the Vietnamese market think that only law firms or the Big Four can establish a Resident Representative Office for you... There is nothing more false that, as Viet Australia Auditing Ltd. can achieve the same results for a cheaper price!

We helped numerous companies to start their Vietnamese success story by establishing Representative Offices for them, and we are here to do the same for you!

Do you wish to enter the path of success in Vietnam? Let Viet Australia's team show you the way!

Share: