Hong Bang Law Firm is a company with nearly 10 years of experience of consulting in foreign investment areas. We have supported a number of foreign investors in conducting investment activities in Vietnam.
Business cooperation contract (referred to as BCC for short) is a type of investment chosen by many investors, which is signed between investors for the purpose of business cooperation and sharing profit without establishing business entities. According to Vietnamese law, a foreign investor has the obligation to establish an operating office in the area where the project is executed to execute the contract.
The operating office of the foreign investor in the BCC contract has a seal and it is allowed to open a bank account, recruit workers and conduct business activities within the scope of rights and obligations specified in the BCC contract.
Therefore, Hong Bang Law would like to share with you some essential information about the procedures of establishing an operating office for foreign investors under business cooperation contract (BCC).
Legal basis
- Investment Law 2020
- Law on Public – Private Partnership Investment 2020
- Decree 31/2021/ND-CP guidance on the Law on Investment
General regulations
- A foreign investor to a business cooperation contract may establish an operating office in Vietnam to execute the contract. The location of the operating office shall be decided by the foreign investor depending on the requirements for contract execution.
- The operating office of a foreign investor to a business cooperation contract has its own seal; the foreign investor may open an account, hire employees, sign contracts and carry out business activities under the business cooperation contract and Certificate of registration of the operating office.
- The foreign investor to the business cooperation contract shall submit the application for registration of the operating office to the investment registration authority of the area where the operating office is intended to be located.
Dossiers
The application for registration of the operating office includes:
- An application form which specifies the name and address of the representative office in Vietnam (if any) of the foreign investor to the business cooperation contract; name and address of the operating office; contents, duration, and operating scope of the operating office; full name, residence, ID Card or Citizen ID Card number or passport number of the head of the operating office;
- The decision of the foreign investor to the business cooperation contract on establishment of an operating office;A copy of the decision to appoint the head of the operating office;
- A copy of the business cooperation contract.
Documents need to be translated, notarized and certified or legalized by overseas diplomatic missions. Hong Bang Laws will support the clients with these requirements.
Procedures
Step 1: Establishing the operating office
The foreign investor in the BCC contract shall submit an application for PMO establishment at the Department of Planning and Investment where the operating office is expected to be located.
The Department of Planning and Investment receives the application, returns the receipt and makes an appointment to notify the results.
Within 15 working days from the receipt of the application, the investment registration authority shall issue the Certificate of registration of the PMO to the foreign investor to the business cooperation contract.
Step 2: Registering for a tax identification number at the Tax Department where the operating office is expected to be located.
Authority to issue the Investment Registration Certificate
- Department of Planning and Investment where the operating office is expected to be located
- Management boards of industrial parks, export-processing zones, hi-tech zones and economic zones if the PMO is expected to be located there.
Services provided by Hong Bang Law Firm
When foreign investors first come to Vietnam, there will be many difficulties about the legal procedures and business methods. Understanding language barriers and other difficulties of foreign clients, our lawyers and legal assistants at Hong Bang Law Firm can use English and other common languages fluently when advising clients about the policies, legal procedures, regulations and investment environment in Vietnam. Moreover, the team of lawyers and consultants of Hong Bang Law are equipped with highly specialized knowledge of policies, legal regulations and investment environment in Vietnam.
Hong Bang Law Firm will accompany customers from the first stage, with consulting support services such as:
- Advising on the conditions for setting up an operating office of a foreign investor in the BCC contract;
- Advising on procedures for setting up an operating office of a foreign investor in a BCC contract in accordance with the law;
- Guiding client to prepare necessary documents for the establishment of an operating office of foreign investors in the BCC contract;
- Consulting on legal issues arising when the operating office comes into operation;
In addition, Hong Bang Law Firm will prepare all documents and conduct all relevant legal procedures for the Clients:
- Preparing complete dossiers, carrying out consular legalization of documents in accordance with the law.
- Preparing documents for the establishment of an operating office of a foreign investor in the BCC contract for a client;
- Representing the client to submit the application for registration of the establishment of an operating office of a foreign investor in the BCC contract;
- Continuously update and monitor information, solve all problems during the procedure;
- Receiving an operation registration certificate for customers;
- Making seals for offices, registering tax codes;
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!
