Company Branch Setup

What is a company branch? Records of procedures for establish a branch of the company
The company branch is one of the popular forms of business expansion in Vietnam, helping businesses strengthen their presence in the market and reach customers in many different regions.
However, in order to establish and operate a branch effectively, businesses need to understand the legal regulations, procedural documents and important notes related to the establishment of a company branch.

1. The concept of a company branch

Theo (Clause 1, Article 55 of the Law on Enterprises 2020), the branch is a dependent unit of the enterprise, tasked with performing all or part of the functions of the enterprise, including the authorized representative function. The branch’s business lines must be suitable for the business lines of the parent enterprise. 

2. Legal characteristics of the branch

• No legal entity status: The branch is not an independent legal entity but operates under the authorization of the parent enterprise. 
• Scope of activities: The branch may perform all or part of the business functions of the parent enterprise, including the signing of contracts if authorized. 
• Location of operation: The enterprise may establish one or more branches in the same locality or in different localities at home and abroad. 

3. Benefits of establishing a branch

• Expanding markets: Branches help businesses reach customers in different regions, increase presence and brand recognition.
• Optimizing business operations: The allocation of business resources and functions to branches helps businesses operate more efficiently.
• Cost savings: Compared to the establishment of subsidiaries, branches have simpler procedures and lower establishment costs.

4. Procedures for establishing a company branch

► Step 1: I prepare the file

Dossiers of branch operation registration include:

• The notice of branch establishment is signed by the legal representative of the enterprise.
• Copies of resolutions, decisions and minutes of meetings of the Board of Members or the Board of Management on the establishment of the branch.
• Copy of the individual’s legal documents for the head of the branch.
• Copy of the parent company’s business registration certificate.
• A copy of the lease agreement or document proving the right to use the location of the branch office.
• Decision on the appointment of the head of the branch.

► Step 2: Submission of Applications

The enterprise submits the dossier at the Business Registration Office where the branch is located. The application can be submitted in person, through the postal service or online.

► Step 3: Receive Results

Within 3 working days after receiving a complete and valid dossier, the Business Registration Office will issue a Branch Registration Certificate. 
Be mindful when naming branches

• The branch name must include the phrase “Branch” with the name of the parent business.
• The branch name must not be identical or confuse with the names of other registered branches.
• The branch name must be written in Vietnamese, may be accompanied by foreign transliteration or abbreviations.

5. Responsibilities and powers of the branch

• Responsibilities: The branch operates under the authorization of the parent enterprise and is responsible within the scope assigned.
• Rights: The branch may carry out business activities, sign contracts, recruit personnel and perform other transactions if authorized by the parent enterprise.

► Important Notes

• Business lines: The branch is only allowed to do business in the registered industries of the parent enterprise.
• Tax and accounting: The branch must perform tax and accounting obligations in accordance with the law.
• Activity report: The branch needs to report periodically to the parent enterprise and competent state management agencies.

Establishing a branch is an effective strategy for businesses to expand their business and increase their presence in the market. However, in order for the branch to operate effectively and comply with legal regulations, enterprises need to understand the relevant regulations and fully implement the necessary procedures.

More info

► Individual business households

► Change of company address

► Business Creation

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