Did you know that it is permissible to extend the operating duration of a representative office the (“RO”) of a foreign entity?
For the time being, foreign investors are extremely interested in establishing the RO in Vietnam. Legally, prior to commencing the RO’s official operations, it must acquire an establishment license of the RO (the “Establishment License”) granted by the provincial Department of Industry and Trade (the “DOIT”) with a time restriction of five (5) years.
Nevertheless, foreign entities may find it difficult to grasp the acceptable time to prolong the RO’s operating duration of the Establishment License in order to avoid breaking the laws. Legally speaking, The RO must submit an application file to the DOIT for extending the operation duration of the Establishment License (the “Extended Establishment License”) if it is about to expire at least thirty (30) days before expiry (the “Application File”). The Extended Establishment License will have the same operating time as the previously granted Establishment License.
The following papers will be included in the Application File:
(i) One (1) origin of the request for extension of the Establishment License on a form issued by the MOIT;
(ii) One (1) legalized copy of the business registration certificate or certificate of similar validity of the foreign business entity translated in Vietnamese;
(iii) One (1) copy audited financial statements or a letter issued by the competent agency or organization where the foreign business entity is established confirming discharge of tax and financial obligations in the most recent financial year or certifying or proving the actual existence and operation of the foreign business entity in the most recent financial year translated in Vietnamese; and
(iv) One (1) copy of the previously granted Establishment License.
The provincial DOIT will have 5 working days from the date of receipt of the proper and complete Application File to grant the Extended Establishment License.
Should you have any questions, please feel free to contact us at finnnguyen@ivlf-lawyer.com, www.ivlf-lawyer.com |www.facebook.com/IVLFLawyer