ESTABLISHMENT OF BUSINESS BRANCH

I. What is a corporate branch?

A branch is a dependent unit of an enterprise, responsible for performing all or part of the enterprise’s functions, including the function of authorized representative. The branch’s business lines must be suitable to the business lines of the enterprise.

The branch must bear the name of the enterprise, accompanied by a corresponding supplement identifying the branch.

Enterprises have the right to set up branches in the country and abroad. An enterprise can set up one or more branches in a locality according to administrative boundaries. Procedures and procedures for establishing a company branch shall be prescribed by the Government.

Conditions for branch owners:

To set up a company branch, the first thing to do is to establish a company and obtain a Certificate of Business Registration first.

Conditions on Branch Name:

The branch name must be written in letters of the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols. The name of the branch must bear the name of the enterprise with the phrase “Branch” in the case of a branch.

In addition to the name in Vietnamese, the branch of the enterprise can register the name in a foreign language and the initials.

Conditions for the head office of the branch:

The head office of the branch is the contact point of the enterprise in the territory of Vietnam, whose address is determined including house number, niche, alley, alley, street, street or hamlet, hamlet, commune, ward. , townships, districts, districts, towns, provincial cities, provinces and centrally run cities; phone number, fax number and email (if any).

Enterprises have the right to set up branches in the country and abroad. An enterprise can set up one or more branches in a locality according to administrative boundaries.

Branch business lines:

The branch’s line of business must be consistent with the business line of the enterprise.

Conditions for Head of Branch:

The head of the branch is an individual with full civil act capacity; It can be another person or a company member.

Branch accounting form:

Choose independent or dependent branch accounting form

II. Profile of establishment of enterprise branch

Profile of establishment of a branch of a one-member limited liability company

Notice of branch operation registration (According to the Appendix form in Circular 20/2015/TT-BKH)

The company owner’s decision on the establishment of a branch;

Decision on appointment of Head of branch;

Power of attorney for the person to carry out this procedure;

A valid copy of the National Identity Card, National Identity Card or Passport of the Head of the Branch

Profile of establishment of branch of 2-member limited liability company

Notification of establishment of branch according to the form;

Decision of the Members’ Council on the establishment of a branch;

Decision to appoint the head of the branch;

Minutes of the Members’ Council on the establishment of the branch;

Certified copy of the identity card of the person who established the branch.

Authorization letter for the person to carry out the branch establishment procedures.

Identity card of the authorized person.

Profile of establishment of a joint stock company branch

Notice of registration of establishment of a branch of a joint-stock company (According to the Appendix form in Circular 20/2015/TT-BKH)

Decision of the Board of Directors on the establishment of a branch;

Minutes of the Board of Directors on the establishment of a branch

Decision on appointment of Head of branch;

Power of attorney for the person to carry out this procedure;

A valid copy of the National Identity Card, National Identity Card or Passport of the Head of the Branch

III. Procedures for setting up a company branch

Step 1: Consult the steps to establish a company branch

In this step, our lawyers and consultants will meet and discuss directly with the client to determine the client’s needs. Consulting on the provisions of the law on branches.

Step 2: Prepare information, draft documents for branch establishment

We will guide the customer to prepare the necessary information for the preparation of the branch operation registration dossier, then we will compile the dossier and send it to the customer to sign.

Step 3: Submit the establishment dossier to the registrar

Once completed, the application for registration of the branch will be submitted by us. After the application is submitted, we will monitor the processing progress and notify the result of the submitted application.

Step 4: Appraise and issue branch establishment certificate

After the application is submitted and accepted, the Department of Planning and Investment will issue a branch establishment certificate, and we will represent the customer to receive the above certificate.

Step 5: Disclose information, engrave the company branch seal

We will announce the branch establishment information on behalf of the customer and engrave the branch seal of the company.

Above are the 5 basic steps for setting up a company branch, please refer to it.

IV. Taxes the branch company needs to pay

With the branch taxes payable, we will classify them into 02 independent or dependent forms of accounting as follows:

a. Pay license tax for branches

Case 1: Independent accounting branch:

Declare and pay license tax at the branch management agency.

Case 2: Dependent accounting branch:

+ In case the branch is located in the same province as the head office, the license tax declaration must be submitted at the head office tax office.

+ In case the branch is located in a different province from the head office, the declaration and license tax shall be submitted at the branch.

b. Pay Value Added Tax to branches

In case of VAT declaration, both independent or dependent accounting branches declare value added tax by themselves.

c. Pay corporate income tax to the branch

+ In case the branch does independent accounting, the branch shall submit the enterprise income tax declaration dossier directly at the tax office where the branch’s head office is registered (not through the parent company).

+ In case the branch does dependent accounting, the branch is not required to submit a corporate income tax return, and the head office submits a tax return for the entire income at the branch.

V. Service of establishing a company branch in Law MVA

Coming to us, you will be fully and accurately consulted with the provisions of the law on the establishment of a branch. Consulting and assisting in drafting documents and documents and then transferring them to customers for signing. Responsible for submitting documents, communicating directly with the processing specialist, receiving and notifying the results to customers as quickly as possible.

Consulting the provisions of the Law before, during and after the establishment of the branch.

Consultancy on drafting documents: MVA Law will advise on drafting documents for establishment of branches and transferring them to customers for signature.

Submit application and receive results: After the customer completes the signing of the application and documents, MVA Law will submit the application on behalf of the customer, discuss with the processing specialist, receive the result and transfer it to the customer. row.

Establishing a company branch is an important step in expanding your company’s business. With many years of experience in consulting the establishment of branches for thousands of businesses, understanding the regulations and procedures of the Department of Planning and Investment as well as tax laws, MVA Law is the most reliable partner. to set up a branch for your business.