A foreign trader conducting commercial activities in Vietnam, the establishment of a branch must comply with conditions prescribed by the law and each foreign trader just can establish maximum 1 branch within 1 province or municipality.
Conditions of the head of the branch:
1. The head of the branch is responsible for his/her action and the operation of the branch to the foreign trader within the power of attorney;
2. The head of the branch is responsible for his/her action surpassing the power of attorney;
3. In the absence of the head of the branch, he/she must grant the power of attorney to another person. The power of attorney must be accepted by the foreign trader. The head of the branch is still responsible for exercising rights and obligations specified by the power of attorney;
4. Upon the expiry of the power of the attorney mentioned in Clause 3 above, if the head of the branch has not return yet and no additional power of attorney is granted, the current authorized person shall be eligible for exercising rights and obligations within the scope of authorization until the head of the branch returns or a new head is appointed by the foreign trader;
5. In case the head of the branch is absent in Vietnam for more than 30 days without authorizing another person or is dead, missing, detained, sentenced to prison or has no capacity for action, the foreign trader must appoint a new head of the branch;
6. The head of the branch shall not concurrently hold the following titles:
-The head of another branch of the foreign trader;
-The head of the branch of another foreign trader;
-The legal representative of a business organization established under the law of Vietnam.
Publishing the branch’s information:
Within 15 days from the date of issue, re-issue, adjustment, renewal and revocation of the Establishment of Branch License, the state-authorized bodies has the responsibility to announce on their web portal the following information:
1. Name and address of the branch;
2. Name and address of the foreign trader;
3. The head of the branch;
4. The number, issue date and validity of the Establishment of Branch License;
5. The scope off operation of the branch;
6. The date of re-issue, adjustment, renewal and revocation of the Establishment of Branch License.
Any foreign trader or foreign enterprise planning to establish a branch in Vietnam to approach a new potential market here, please feel free to contact Apolo Lawyers. We are willing to give legal advice and provide relevant services to make sure that your investment process is safe, promptly and effective!