Hong Bang Law Firm has 10 years of consulting experience in the field of investment and business. We have supported many foreign traders to set up representative offices, branches, foreign-invested companies and accompanied them throughout the process of doing business in Vietnam.

Therefore, we would like to share with you some detailed information about the procedure of termination of operation of a foreign branch in Vietnam:

Legal basis

• Decree 07/2016/ND-CP detailing the commercial law on representative offices and branches of foreign traders in Vietnam
• Circular 11/2016/TT-BCT stipulating the implementation form of the Government’s Decree No. 07/2016/ND-CP dated January 25, 2016 detailing the commercial law on representative offices and branches of the Government. foreign traders in Vietnam

Regulations 

A branch operation shall be terminated when:

• It is requested by its head office;
• The foreign trader ceases to operate according to laws of the country or territory in which such foreign trader is established or registered.
• The License for the Establishment of the representative office or branch is expired but its head office does not apply for an extension of the license.
• The licensing agency refuses to grant an extension of the expired License for the Establishment of the representative office or branch.
• The License for Establishment of the branch or representative office is revoked as prescribed in Article 44 Decree 07/2016/ND-CP.
• The foreign trader or its representative office or branch no longer satisfies one of the requirements stipulated in Articles 7 and 8 Decree 07/2016/ND-CP.

Obligations resulting from terminating branches

In addition to the execution of procedures for the shutdown of representative offices or branches stipulated in Articles 36 and 37 Decree 07/2016/ND-CP, the representative office or branch shall publicly put up the notice of the shutdown at their office and fulfill other involving obligations under provisions of laws.

Every foreign trader having closed representative offices or branches shall fulfill obligations to contracts and debt settlement including outstanding taxes and settlement of legal benefits of employees working for such representative offices or branches in compliance with provisions of laws.

Application 

An application for the shutdown of a representative office or branch shall include:

• A notification of shutdown of the branch using the form issued by the Ministry of Industry and Trade and signed by a competent representative of the foreign trader, excluding cases: The License for Establishment of the branch is revoked.
• Copies of written refusals of grant of extension of the license or establishment of the representative office or branch (for those case that The licensing agency refuses to grant an extension of the expired License for Establishment of the branch) or a copy of the decision on revocation of the license for establishment of the representative office or branch released by the licensing agency (for those  cases that The License for Establishment of the branch is revoked);
• Lists of creditors and the amount of debts, including outstanding taxes and social insurance premiums;
• Lists of employees and their current benefits;
• The original License for Establishment of the branch or representative office.

Procedures

The foreign trader shall submit the applications for the shutdown of their branch to the licensing agency directly or by post or only (where applicable).

Within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete). The request for supplementation to the application shall be made only once during the processing of the application.

Within 05 working days from the date of receipt of the valid application, the licensing agency shall publish the decision on the shutdown of the branch on their portal.

Competent agency to handle procedures: Department of Planning – Ministry of Industry and Trade

Time to carry out procedures: 5-10 working days from the date of submitting valid documents.

Services provided by Hong Bang Law

Hong Bang Law will accompany customers in the whole process of carrying out the procedures with consulting and support services such as:

• Advising customers on conditions, documents, and procedures for terminating branch operation 
• Drafting documents related to the content to be adjusted according to the provisions of law and information provided by the customer;
• On behalf of the customer to carry out the procedures at a competent state agency;
• Supervise the processing, explain to state agencies on issues related to dossiers;
• Supporting clients to carry out legal procedures arising after the termination of the operation. 

If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!