Procedures for establishing a branch

When there is a demand to expand the scope of business beyond the head office of the enterprise, the enterprise can establish a branch. We would like to share some information on the establishment of a branch.

A. Matters to be kept in mind when planning to establish a branch

1. Conditions on branch name

(a) The branch name must be written in letters of the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols.

(b) The name of the branch must include the company name with the phrase “Branch” in the case of a branch.

(c) The branch name must be written or posted at the branch office. The name of the branch is printed or written in smaller font than the Vietnamese name of the enterprise on transaction papers, documents and publications issued by the branch.

2. Dossier for registration of branch operations

The dossier includes the following documents:

(a) Notice of establishment of a branch signed by the legal representative of the enterprise;

(b) Certified true copies of resolutions, decisions and meeting minutes of the Members’ Council for limited liability companies with two or more members, partnerships, of the Board of Directors for joint stock companies; a copy of the resolution or decision of owner for a one-member limited liability company, related to the establishment of a branch;

(c) Certified true copy of the legal documents of the individual for the head of the branch.

3. Authority handling application for registration of branch operations

Department of Planning and Investment of the province or city where the enterprise registers its branch office.

4. Processing time for application for branch operation registration

Within 03 working days from the date of receipt of a valid application, the Business Registration Office shall issue a Certificate of Operation Registration of the branch and update information on the business location in the National Database of Business Registration for businesses. In case the application is not valid, the Business Registration Office shall notify in writing the contents that need to be amended and supplemented to the enterprise.

5. Make a seal for the branch

A branch is not required by law to have a seal. However, making a seal for the branch will bring convenience to the branch in the process of performing the task. Therefore, depending on the decision of the enterprise, after receiving the certificate of branch operation registration, the enterprise shall contact the functional unit to make a seal for the branch.

B. The scope of works of LMP Lawyers, the disadvantage if the client do it by themselves, the advantages if client is supported by LMP Lawyers

1. Scope of works

For registration of establishing the branch, LMP Lawyers shall assist clients in performing the following tasks:

(a) Advising clients on legal issues related to the content of establishing the branch;

(b) Preparing a list of documents and information to be provided by the client in order to draft a dossier that complies with the law and the licensing authority’s requirements;

(c) Submitting the dossier on behalf of the client to the licensing authority;

(d) Monitoring the status of the application, promptly discussing with the processing officer as soon as additional adjustments are required;

(e) Receiving results on behalf of the client and delivering the results to the client.

2. Disadvantage if clients do it themselves

With many years of experience in assisting businesses to establish the branch, LMP realize that clients may face the following risks if clients carry out the procedures for establishing the branch by themselves:

(a) The fact that legal documents are not clear or a provision of this legal document can be amended, supplemented, replaced or guided by other legal documents may cause difficulties to the client in determining the legal basis for the proceeding. 

(b) Clients may not declare correctly as required by law and competent authority due to inexperience in filing documents. This makes clients take a long time to complete the procedure, affecting the progress of implementing the client’s business plans.

(c) The client misidentifies the competent authority to receive the application for establishing the branch.

(d) The client does not closely monitor the application processing situation, leading to the inability to promptly handle the adjustment and supplement of the dossier upon request from the licensing authority.

3. Advantage if supported by LMP Lawyers

When clients are supported by LMP Lawyers, clients will receive the following advantages as follows:

(a) Clients save a lot of time in the licensing procedure because clients simply have to provide LMP with the information and documents required by LMP.

(b) The procedure is carried out quickly and accurately and in compliance with the law.

(c) Getting enthusiastic advice and support from LMP Lawyers’ experienced professionals.

Note: The content presented above is for reference only. The aforementioned content may no longer be relevant depending on the time and audience. For any detailed consultation requests, please contact LMP Lawyers.

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