Please let us about conditions for granting representative offices and branches establishment permits?
On 25 July 2006, the Government issued Decree No.72/2006/ND-CP “Decree” detailing the Commercial Law regarding Vietnam-based representative offices and branches of foreign traders. Accordingly, the Decree regulated conditions for granting representative offices and branches establishment permits as follow:
- A foreign trader shall be granted a permit to establish in Vietnam its representative office when fully satisfying the following conditions:
+ Being a trader recognized by the law of the country or territory where it has been lawfully established or made its business registration;
+ Having been operating for at least one year after its lawful establishment or business registration in its country.
- A foreign trader shall be granted a permit to establish in Vietnam its branch when fully satisfying the following conditions:
+ Being a trader recognized by the law of the country or territory where it has been lawfully established or made its business registration;
+ Having been operating for not less than five year after its lawful establishment or business registration in its country.
- Permits for establishment of Vietnam-based representative offices or branches of foreign traders shall each have a valid term of 05 (five) years, which must, however, not exceed the remaining valid term of such foreign traders’ business registrations or papers of equivalent value in case foreign laws specify valid terms of business registrations of foreign traders.
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