Reference situation:

A company was established in 2009 in Ho Chi Minh city. The company specializes in the importation and distribution of cosmetics and functional products. After the company reaches many achievements with the increasing network of customers, the company would like to open a branch in Da Nang city to expand their operation in the Central Region of Vietnam. The company would like to consult lawyers about the necessary legal problems that it should note.

Legal grounds:

1. Law on Enterprise 2014;
2. Decree No. 78/2015/NĐ-CP;
3. Circular No. 02/2019/TT-BKHĐT.

Our legal advice:

• The company needs to register its branch in a competent licensing authority
• Article 45 of Law on Enterprise 2014 provides “A branch shall be a dependent unit of an enterprise, having the task of performing all or a number of the functions of the enterprise, including the function of authorized representative. The lines of business of the branch must be consistent with the lines of business of the enterprise”
• When registers for the operation of the branch, the company should note the following problems:

– Business lines of the branch: the branch must register the similar business lines compared to its company (importation and distribution of cosmetics and functional products)

– Naming the branch:

The name of the branch must be written using the letters in the Vietnamese alphabet, letters F, J, Z, W, and numerals and symbols.

The name of the branch must include the name of the company together with the word “branch”.

In addition to its Vietnamese name, the name of the branch can be written in foreign language and abbreviation.

The name of the branch must not include the words “company” or “enterprise”.

– Seal of the branch: The branch will have a separate seal against its company. The company can decide on the form and number of the seal of the branch.

• Processing time: 03 working days from the date on which the licensing authority receives enough valid documents
• Licensing authority: Provincial Department of Planning and Investment where the branch is located

Click here to explore the detailed procedures for opening a branch