Establishing a Representative Office in Vietnam: A Simple Investment Route for Foreigners

Setting Up a Representative Office in Vietnam Under Vietnam Law

Establishing a representative office in Vietnam is one of the simplest ways for foreign investors to enter the Vietnamese market.

A representative office allows foreign traders to lease office space, hire staff, open bank accounts, and promote their business activities in Vietnam.

If the chief representative is a foreigner, they can apply for a work permit and a temporary residence card to live and work in Vietnam.

Since representative offices are not subject to income tax, maintaining one is less burdensome compared to a full-fledged company. Additionally, when the office has fulfilled its purpose, the process of closing it down is less complicated than that of dissolving a company.

According to Vietnamese law, a representative office is a dependent unit that represents the interests of a foreign entity in Vietnam. These offices are established by foreign companies to conduct market research, provide information, assist in finding new business partners, and gain an understanding of the local market.

Foreign entities must meet certain conditions before establishing a representative office in Vietnam. The office operates in compliance with Vietnamese law and has specific rights and obligations.

Important Notes for Preparing the Application to Establish a Representative Office in Vietnam

When preparing the application for a representative office license in Vietnam, foreign entities should keep the following points in mind:

Complete the Application Forms

The application forms for establishing a representative office in Vietnam are issued by the Ministry of Industry and Trade. These forms must be signed by the legal representative of the foreign entity.

Notarize, Legalize, and Authenticate Documents

The foreign entity must submit the business registration certificate, audited financial statements, charter, office lease agreement, and the passport of the legal representative of the representative office in Vietnam. Documents issued abroad must be notarized, legalized, and authenticated (apostille procedures) according to Vietnamese law for use in Vietnam. If the business registration certificate or equivalent documents have an expiration date, there must be at least one year remaining.

Who Can Be the Chief Representative in Vietnam?

The Chief Representative of the office in Vietnam must be a different individual from the Director of the foreign entity.

Timeline for Setting up a Representative Office in Vietnam

The process of setting up a representative office inVietnam generally takes about 20 business days from the submission of the application until receiving the business operation registration for the office.

 

 

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Guide to Register a Trademark in Vietnam

 Step-by-Step Guide to Register a Trademark in Vietnam

In this article, we'll explore the crucial steps to register a trademark in Vietnam. We'll provide you how it protects your brand from unauthorized use and imitation, helps build brand loyalty, and enhances your business's overall value.

Registering a trademark in Vietnam is essential for safeguarding your brand from unauthorized use and imitation. It helps build brand loyalty, enhances corporate value, and supports effective marketing. The process is aligned with international standards, offering you a competitive edge in both local and international markets.

Conducting a Vietnam Trademark Search

The first essential step in registering a trademark in Vietnam is conducting a comprehensive trademark search. This search is crucial to identify any existing trademarks that may be similar or identical to yours, helping to avoid potential conflicts that could be costly and time-consuming. By ensuring your trademark is unique and registrable, you lay a solid foundation for its legal protection.

Step-by-Step Guide to Register a Trademark in Vietnam

Step 1: Preparing Your Trademark Application

1.Clear Representation of Your Trademark:

Begin with a clear and precise representation of your trademark, whether it’s a word, logo, phrase, or a combination. It must meet Vietnam's trademark regulations regarding distinctiveness and non-descriptiveness. A unique trademark helps prevent confusion and ensures legal protection.

2. Classification of Goods and Services:

Use the Nice Classification system to categorize the specific goods or services your trademark will cover. This classification is crucial for defining the legal scope of your trademark’s protection.

3.Applicant Information:

Provide complete details of the individual or company applying, including full name, address, and nationality. For companies, include the registered address and legal representative's details.

Step 2: Filing the Trademark Application in Vietnam

1.Filing the Application:

Submit your completed application, along with the required fees, to the National Office of Intellectual Property. Ensure all information is accurate to avoid delays or rejections.

2.Formality Examination:

The NOIP will conduct a formality examination to ensure that all required sections of the application are complete and the fees are paid correctly. This step checks compliance with statutory requirements but does not assess the content.

3.Publication and Opposition Period:

After the examination, your application will be published in the NOIP’s gazette, starting a public scrutiny phase. During this period, third parties can oppose your trademark registration if they believe it infringes on their rights or violates local laws.

4.Substantive Examination:

The NOIP will then assess your trademark against legal criteria to ensure it is distinctive and does not conflict with existing trademarks. This examination is critical to determining the trademark’s eligibility for protection.

5.Granting the Certificate:

If your application passes all examinations and no oppositions are upheld, the NOIP will issue a registration certificate. This certificate is conclusive proof of your legal right to use the trademark in Vietnam, protecting it from unauthorized use.

Remember, when in doubt, consult with an IP attorney in Vietnam who specializes in Vietnamese trademark law to guide you through any complexities. This ensures that your efforts to register a trademark in Vietnam are smooth and legally sound, setting your brand up for long-term success.

 

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Expert Guidance to Register a Company in Vietnam

Understanding Vietnam’s Business Environment

Before embarking on the process of registering a company in Vietnam, it's crucial to gain a thorough understanding of the local business environment. Vietnam's economy has demonstrated remarkable resilience and growth, particularly in the aftermath of the global pandemic. This success is attributed to strong governmental reforms, the rise of a burgeoning middle class, and the widespread adoption of digital technologies. Strategically located in Southeast Asia, Vietnam serves as an ideal hub for trade and offers a gateway to other ASEAN markets.

Five Essential Steps to Register a Company in Vietnam

1.      Selecting Your Business Structure and Name

2.      Preparing the Required Documentation

3.      Submitting Your Application

4.      Securing Necessary Licenses and Permits

5.      Opening a Corporate Bank Account

Step 1: Selecting Your Business Structure and Name

The initial step to register company in Vietnam involves selecting the appropriate business structure. Common entities include Limited Liability Companies (LLCs) and Joint-Stock Companies (JSCs), each designed to meet different business needs and scales. After determining the business structure, the next task is to choose a unique company name, which must be checked and approved to avoid conflicts with existing entities.

Step 2: Preparing the Required Documentation

For foreign investors, the registration process consists of two primary stages:

·        Investment Registration Certificate (IRC):
The first stage requires obtaining the IRC by submitting a detailed proposal outlining the investment project’s objectives, scope, location, capital structure, capital mobilization plan, duration, and implementation schedule.

·        Enterprise Registration Certificate (ERC):
Once the IRC is granted, the next step is to apply for the ERC. This involves submitting the company’s charter, a list of shareholders, and legal documents pertaining to the appointed representatives.

These documents are essential for ensuring compliance with Vietnamese laws and establishing a solid foundation for legal business operations in the country.

Step 3: Submitting Your Application

Applications for both the IRC and ERC are typically submitted to the Provincial Department of Planning and Investment (DPI) in the province where the investment is planned. The DPI is responsible for reviewing and approving these applications, ensuring that foreign investments align with local regulations and policies.

Step 4: Securing Necessary Licenses and Permits

Depending on the nature of your business, additional licenses and permits may be required to operate legally in Vietnam. The time required to obtain these licenses can vary, so it is advisable to begin this process early to avoid potential delays.

Step 5: Opening a Corporate Bank Account

After successfully registering your company, opening a corporate bank account is essential for managing financial transactions, receiving capital, and handling employee salaries. Vietnam's banking sector is well-developed, offering a range of services from both local and international banks to meet your business needs.

Registering a company in Vietnam opens the door to numerous opportunities in one of Southeast Asia’s most dynamic economies. Although the process may take several months, depending on the specifics of the business, it is a worthwhile investment. By adhering to local regulations and respecting cultural norms, businesses can position themselves to thrive in a market characterized by rapid growth and strategic importance in both the Asian and global economies.

For personalized assistance or more detailed information, consulting with a legal expert in Vietnam can help streamline the process and ensure full compliance with local laws.

 

 

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Starting a Business in Vietnam: A Comprehensive Guide

Starting a Business in Vietnam: A Comprehensive Legal Guide for Foreign Investors

Vietnam has emerged as a prime destination for foreign investment, bolstered by its strong security, political stability, and strategic geographical location. The Vietnamese government has also introduced a series of preferential policies designed to facilitate and encourage foreign investment, making the country an increasingly attractive place to start a business in Vietnam.

A Step-by-Step Guide to Starting a Business in Vietnam as a Foreigner

1. Determine Your Business Structure in Vietnam

The initial step for any investor seeking to establish a business in Vietnam is selecting the appropriate business structure. This decision should be based on the number of capital contributors, the amount of capital contributed, and the overall financial strategy of the business.

Under Vietnamese law, foreign individuals and organizations may choose from several business structures, including:

Limited Liability Company (LLC)

Joint Stock Company (JSC)

Partnership

Private Enterprise

2. Define Your Business Activity in Vietnam

The next critical consideration is the nature of the business activities you intend to conduct.

Non-Conditional Businesses:

If the chosen business activity is not subject to specific legal conditions, the company may commence operations immediately following its establishment. These business activities are categorized as non-conditional and are common among many enterprises.

Conditional Businesses:

However, if the business activity falls under a conditional category, the enterprise must fulfill specific legal requirements, such as obtaining the necessary business licenses, meeting minimum charter capital requirements, and adhering to foreign ownership ratios. Only after satisfying these conditions can the business legally operate.

3. Choose a Business Location in Vietnam

Investors must select a legally compliant location for their business operations within Vietnam. The business address must be situated within the country and meet specific legal requirements relevant to the type of business. For example, company offices cannot be located in residential apartment buildings or dormitories, and factories must be situated in zones designated for industrial purposes.

4. Name Your Business

A unique and legally compliant business name is required for all newly established businesses in Vietnam. The name must not duplicate or closely resemble any existing registered business names and must not include terms associated with government or state agencies.

Businesses may opt for abbreviations or English names; however, these names must not cause confusion with existing entities and must avoid the inclusion of prefixes, suffixes, or cultural symbols that could lead to misunderstandings.

5. Obtain Necessary Certificates for Your Business

-Investment Registration Certificate (IRC):

Foreign investors must apply for an Investment Registration Certificate from the competent authorities in Vietnam. This certificate is a mandatory requirement for any project seeking to establish a new legal entity in the country. The processing time for obtaining the IRC is typically around 30 days, depending on the specifics of the project.

-Enterprise Registration Certificate (ERC):

Following the issuance of the IRC, foreign individuals and organizations must apply for an Enterprise Registration Certificate from the Department of Planning and Investment. This process generally takes around 7 days. Upon obtaining the ERC, the business gains legal status in accordance with the Law on Enterprises in Vietnam, enabling it to commence operations.

Compliance and Ongoing Obligations

From the commencement of operations, the business must ensure ongoing compliance with Vietnamese regulations. This includes the submission of monthly reports related to foreign labor, investments, taxes, health, and insurance to the relevant authorities. Businesses may choose to manage these compliance obligations internally or engage professional services to avoid penalties and ensure smooth operations.

 

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Understanding Trademark Registration in Vietnam

1. Importance of Trademark Registration

Legal Protection: Registering your trademark in Vietnam legally protects your brand and intellectual property, preventing others from using your trademark.

Market Security: It ensures that your brand identity is secured in the expanding Vietnamese market.

2. Common Mistakes to Avoid

Inadequate Research:

Make sure your trademark is unique and not already in use.

Use national and international trademark databases.

Hire experts and consult legal professionals for thorough research.

Incorrect Classification:

Use the Nice Classification system to accurately categorize your goods and services.

Misclassification can lead to application rejection, incomplete protection, and additional costs.

Failure to Monitor and Renew:

Trademark registration requires ongoing monitoring and timely renewals.

Neglecting to renew can lead to loss of rights and legal complications.

3. Benefits of Expert Assistance

Knowledge: Experts understand Vietnam’s trademark laws and procedures.

Efficiency: They streamline the registration process, saving you time.

Risk Reduction: Experts help avoid common pitfalls, reducing the risk of rejection or legal disputes.

Comprehensive Protection: Ensures your brand is fully protected through correct classification and monitoring.

4. Choosing the Right Service Provider

Experience and Reputation: Select law firms in Vietnam with a proven track record in trademark registration.

Full Range of Services: Ensure they offer research, classification, registration, monitoring, and renewal services.

Legal Support: Opt for providers with strong legal expertise to handle any potential disputes.

By understanding these points and seeking expert assistance, you can navigate the trademark registration process in Vietnam smoothly and protect your brand effectively in this growing market.

 

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Establishing a Company in Vietnam

Establishing a Company in Vietnam as a Foreigner: A Comprehensive Guide by a Vietnamese Law Expert

Why Foreign Investors Should Consider Establishing a Company in Vietnam

Vietnam offers a compelling environment for foreign investors due to several key factors:

1.Rapid Economic Growth:

Vietnam's economy is characterized by robust GDP growth and a favorable business climate. The government has implemented various market-oriented reforms to attract foreign investment and foster a dynamic entrepreneurial ecosystem.

 

2.Strategic Geographical Location:

Vietnam serves as a gateway to the vibrant markets of Southeast Asia. Its membership in regional trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the ASEAN Economic Community (AEC), provides investors with access to a vast consumer base and favorable trade conditions.

3.Competitive Workforce:

Vietnam offers a young, skilled workforce with competitive labor costs, making it an attractive destination for manufacturing and service industries.

4.Supportive Government Policies:

The Vietnamese government has taken steps to enhance transparency, streamline administrative procedures, and improve investor protection, demonstrating its commitment to facilitating business operations.

8 Essential Steps to Establish a Company in Vietnam

1.Register the Investment Project

Submit an investment project registration file to the Business Registration office of the province or city, or the management board of an industrial zone, export processing zone, or high-tech zone for approval. The process takes approximately 15 days.

2.Apply for a Certificate of Investment Registration

After project approval, submit a valid record to the Department of Planning and Investment within 10 days to apply for a business registration certificate.

3.Apply for the Certificate of Business Registration

After obtaining the investment registration certificate, submit the application for an enterprise registration certificate to the enterprise registration office within 3 days.

4.Publish the Content of the Business Registration

Disclose information about the enterprise on the national enterprise registration portal within 30 days. This includes details such as business lines and lists of founding shareholders for joint-stock companies.

5.Register Business Stamp

Decide on the form, quantity, and content of the enterprise's stamp, which must include the company’s name and business code. Notify the business registration office of the stamp for publication in the National Information Portal on business registration.

6.Notice of Use of Stamp

Submit notices on the use of stamp forms to the Investment Registration Agency. The agency will issue a receipt and publish the notice on the National Business Information Portal.

7.Open Bank Accounts

Open two types of bank accounts: an investment capital account to receive the investment amount and a transaction account for daily operations in Vietnam.

8.Post-Licensing Procedures

For businesses in conditional sectors, apply for necessary certificates such as business qualification certificates, practicing certificates, professional liability insurance, and meet legal capital requirements before commencing operations.

How a Vietnam Law Firm Can Assist

Navigating the process of establishing a company in Vietnam involves careful adherence to the outlined steps and compliance with relevant regulations. Engaging a reliable law firm in Vietnam can help investors efficiently navigate these steps, ensure compliance with legal requirements, and facilitate a smooth and successful establishment of their business in the country.

By leveraging the expertise of a law firm, foreign investors can mitigate risks and streamline their entry into the Vietnamese market, taking full advantage of the country's promising investment landscape.

 

 

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