A business location is where a company’s specialized business operations take place. Business locations are permitted to conduct business in industries that the company has registered, but only in a specific industry group that the business selects from the parent company’s business lines. The business’s location is a dependent accounting unit. As a result, businesses that want to broaden their business scope but do not want to generate complex tax declaration procedures such as branches but can generate business activities (unlike the company’s representative office, which is only a place to trade and introduce products) should choose the form of establishing a business location.

Hong Bang Law Firm would like to provide advice on procedures for Notification of establishment of business location as follows:

Legal basis

• Vietnam’s law on enterprises 2020;
• Decree No. 01/2021/ND-CP on enterprise registration;
• Circular No. 01/2021/TT-BKHDT guidance on enterprise registration;
• Circular No. 47/2019/TT-BTC on amounts, collection, payment, management and use of fees for providing information about enterprises, charges for business registration.

Overview of business locations

According to Clause 3, Article 44 of the Law on Enterprise 2020:

“ A business location of an enterprise is the place at which specific business operations are carried out.”

Characteristics of the business location:  

• Business locations are not allowed to register and use their own seals
• All business activities at the business location are entirely dependent on the company, accounting depends on
• At the business location, the enterprise is not allowed to sign a contract and cannot export invoices
• The business lines of the company’s business location must be registered and operated according to the industry of the parent company.

Unlike a branch, establishing a business location other than the company address, only send a notification of the place of business to the provincial business registration office within ten working days from the date of the establishment decision.

Procedure

In case of registration via electronic network using business registration account 

Applicants use business registration accounts to declare information, download electronic documents and sign enterprise registration dossiers via electronic information networks and pay business registration fees and charges according to the process on the national portal on enterprise registration (https://dangkykinhdoanh.gov.vn). In case of authorizing the implementation of business registration procedures via an electronic information network using the Business Registration Account, the authorization document must have contact information of the authorized person to verify the submission of the enterprise registration dossier via the electronic information network.

After completing the submission of the application, the applicant will receive the enterprise registration dossier receipt via the electronic information network.

The Business Registration Department grants enterprise registration to the enterprise in case the dossier is eligible and notified the enterprise of the issuance of enterprise registration. In case the dossier is not eligible, the Business Registration Office shall send a notice via electronic information network to the enterprise to request amendments and supplements to the dossier.

In case of registration in person or through the postal service 

The enterprise may set up a business location at another address where the enterprise is headquartered or has a branch.

Within 10 days from the date of decision on establishment of business location, the enterprise shall send a notice of establishment of a business location to the Business Registration Office where the business location is located.

Within 03 working days from the date of receipt of valid dossiers, the Business Registration Office updates information about business locations in the National Database on Business Registration for enterprises. In case the enterprise has a need, the Business Registration Office issued a certificate of business location registration to the enterprise. In case the dossier is not valid, the Business Registration Office shall notify in writing the contents to be amended and supplemented to the enterprise.

Dossier

A notification of establishment of a business place shall be signed by the legal representative of the enterprise in case the business location is affiliated to the enterprise or signed by the head of the branch in case the business location is affiliated to the branch.

• In case the enterprise is a securities company, the company managing the securities investment fund, enclosed with a copy of the establishment and operation license or a copy of the written approval of the State Securities Commission;
• In case enterprise is a social enterprise, the dossier must have more commitments to implement social and environmental objectives specified in Clause 1 Article 28 of Decree No. 01/2021/ND-CP
• In case the business is a credit organization, enclosed with a copy of the license or written approval issued by the State Bank of Vietnam;

Written authorization for individuals to carry out procedures related to business registration. This authorization document is not required to notarized or endorsed.

Copies of the authorized individual’s legal documents.

Competent authority and time of implementation

Competent authority: Business Registration Department under the Department of Planning and Investment.

Time of implementation: Within 03 (three) working days, from the receipt of a full valid dossier.

Services of Hong Bang Law Firm 

•  Advise on the appropriate type of business for clients;
•  Draft, prepare and check the validity of the dossier;
•  Work with state authorities;
•  On behalf of the customer to receive the results;
•  Hand over the results to the customer.

If you need more detailed advice and answers as well as how to access this service, please contact directly our 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!

Hong Bang Law Firm hongbanglawfirm.com./.