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Procedures for registering business location of foreign-invested company

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What documents are required to establish a business location for a foreign-invested enterprise? What are the taxes to be paid and what are the notes and regulations to be aware of? Find out the answer in this article.

NOTES WHEN ESTABLISHING A BUSINESS LOCATION OF A FOREIGN INVESTED COMPANY

For companies with part or 100% foreign investment capital, before completing procedures to establish a business location, you need to understand the general regulations and notes about this type, specifically:

  1. A business location is where a business conducts its business activities. However, a business location can only register its business lines and operate based on the business lines of its parent company.
  2. The business location is a dependent accounting unit of the parent company, has no tax code, no VAT invoice, no seal and is not allowed to sign contracts.
  3. The name of the business location must include the phrase “business location”.

In fact, the legal regulations when establishing a business location are not too difficult, along with its own advantages, so the business location is still a popular form of foreign investors when wanting to promote business activities.

  • Simple establishment profile;
  • Simple dissolution procedure;
  • Save on shipping costs;
  • Easy customer care;
  • Simple tax obligations.

PROCEDURES FOR ESTABLISHING A BUSINESS LOCATION OF A FOREIGN INVESTED COMPANY

To be able to carry out the procedure for registering a business location for a foreign-invested company, first of all, you must have a business license, which means you have the right to legally do business in Vietnam. 

See details:

>>  Service of establishing foreign invested enterprises, service fee from 9,000,000 VND;

>> Service of establishing business location of foreign invested company, service fee 3,000,000 VND .

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The documents for establishing a business location for foreign enterprises include:

  1. Notice of establishment of business location;
  2. Notarized copy of business license;
  3. Decision on appointment of head of business location;
  4. Notarized copy of ID card/CCCD/passport of the head of the business location;
  5. Power of attorney (if the applicant is not the legal representative).

>> FREE DOWNLOAD:  Documents for establishing a business location.

➤  Agency receiving documents: Department of Planning and Investment.

➤  Time to process application: Within 3 working days from the date of receipt of application.

Note:

Procedures for establishing a business location of a foreign-invested enterprise are similar to procedures for establishing a business location of a 100% Vietnamese-owned company.

>> See more: How to submit an application to register a business location online.

TAX OBLIGATIONS & THINGS TO DO AFTER COMPLETING THE PROCEDURES

For foreign invested enterprises headquartered in Vietnam (FDI company in Vietnam), the following taxes must be paid:

  • Business location in the same province as the parent company: business license tax (regardless of whether or not there are expenses or revenues);
  • Business location in different province from parent company: VAT and business license tax.

After completing the procedures for establishing a business location of a foreign-invested company, you need to pay attention to the following to avoid administrative penalties or revocation of the business location license.

  1. Hang a nameplate at the business location;
  2. Submit business license declaration;
  3. Pay business tax;
  4. Apply for tax code 13 (for business locations in other provinces).

FAQ

How is establishing a business location different from establishing a representative office?

For purely Vietnamese companies or companies with foreign investment, these two forms have many differences in terms of function, accounting form, scope of establishment, etc. 
For example, if the business location has the function of buying, selling and trading, the representative office only has the function of communication and performing activities other than profit-making purposes. 

>> See details: Comparison – should you establish a branch or a business location?

Can the parent company director be the head of a business location?

The director of the parent company/headquarters of a foreign-invested enterprise  is allowed  to be the head of the business location.

After establishing a business location, what procedures need to be done with the tax authorities?

After being granted a business location operating license, you need to pay attention to doing the following: hanging a sign at the business location, submitting a business license tax declaration, paying business license tax and completing procedures to apply for a Tax Code 13.

What are the types of business location taxes that foreign-invested companies must pay?

  • For foreign invested enterprises, only need to pay business license tax;
  • For business locations in different provinces from the parent company, additional VAT must be paid. 

If you have any questions about taxes when registering a foreign company’s business location, please contact fdiinvietnam.com at  0978 578 866 (North) , 033 9962 333 (Central) or 033 9962 333 (South)  for free consultation support.

What documents are required to establish a business location for a foreign-invested company?

The documents and forms you need to prepare include:

  • Notice of establishment of business location;
  • Notarized copy of business registration certificate;
  • Decision to appoint head of business location;
  • Notarized copy of ID card/CCCD/passport of the head of the business location;
  • Power of attorney (if the applicant is not the legal representative).

Call us at 0978 578 866 (North) , 033 9962 333 (Central) or 033 9962 333 (South) for support.

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