Consulting - Registering to establish a branch/representative office

• Branch is a dependent unit of an enterprise, responsible for performing all or part of the functions of the enterprise, including the function of authorized representation.
• The branch's business line must be consistent with the enterprise's business line

Basis: According to Clause 1, Article 44 of the Enterprise Law 2020.

• Representative office is a dependent unit of an enterprise, with the task of authorizedly representing the interests of the enterprise and protecting those interests. Representative offices do not perform business functions of the enterprise

Basis: According to Clause 2, Article 44 of the Enterprise Law 2020).

To carry out all or part ofthe functions of the enterprise, including business functions and representative functions according to rights.

• Perform the task of authorized representative for the interests of the business and protect those interests (Brand promotion, Trade promotion, etc.).
• Representative offices have no business functions.

• The branch pays license tax at the Tax Authority where the branch headquarters is located.
• In case a dependent accounting branch operates in a province or city other than the area where the enterprise's head office is located, corporate income tax declaration shall be made in the place where the head office is located.
• The branch still must fulfill tax obligations for value added taxes and corporate income according to the provisions of Circular 156/2013/TT-BTC and Circular 119/2014/TT-BTC.

• Representative offices are only responsible for license fees and personal income tax (if any arise);
• Representative offices must submit tax declaration documents for taxes that must be paid or paid on behalf of the representative office.