VI In the context of increasingly developing cross-border investment and business activities, maintaining the valid legal status of a foreign trader’s branch in Vietnam plays a particularly important role. One of the issues that many foreign traders often encounter is the procedure for renewing the License for Establishment of a Branch when it is about to expire. A clear understanding of legal regulations, dossiers, and implementation processes not only helps businesses avoid legal risks but also ensures that business operations take place continuously and stably. Let’s explore the important contents related to this renewal procedure with Pham Consult.
- Cases for renewal of the License for Establishment of Branches of Foreign Traders in Vietnam
A branch of a foreign trader in Vietnam (hereinafter referred to as the “Branch”) is a dependent unit of the foreign trader, established and conducting commercial activities in Vietnam in accordance with the provisions of Vietnamese law or international treaties to which the Socialist Republic of Vietnam is a member. Accordingly, the branch of a foreign trader in Vietnam shall have rights and obligations as prescribed by Vietnamese law, and the foreign trader must be responsible before Vietnamese law for all activities of the branch.
According to the provisions of Article 8, Decree No. 07/2016/ND-CP, a foreign trader shall be granted a License for Establishment of a Branch when it meets the statutory conditions. The License for Establishment of a Branch of a foreign trader has a term of 05 years but shall not exceed the remaining term of the Business Registration Certificate or equivalent documents of the foreign trader in cases where such documents have a prescribed term.
According to Article 21, Decree No. 07/2016/ND-CP, a foreign trader is entitled to a renewal of the License for Establishment of a Branch upon its expiration, except for cases of violations that fall under the circumstances of license revocation as prescribed in Article 44, Decree No. 07/2016/ND-CP.
- Dossier for renewal of the License for Establishment of Branches of Foreign Traders in Vietnam
According to Article 22, Decree No. 07/2016/ND-CP, the dossier for the renewal of the License for Establishment of a Branch of a foreign trader in Vietnam includes the following types of documents:
(i) An application form for renewal of the License for Establishment of a Branch, following the template provided by the Ministry of Industry and Trade, signed by an authorized representative of the foreign trader;
(ii) A copy of the Business Registration Certificate or equivalent documents of the foreign trader;
(iii) A copy of the audited financial statements or a document confirming the fulfillment of tax or financial obligations in the latest fiscal year, or equivalent documents issued or certified by a competent authority or organization where the foreign trader is established, proving the existence and operation of the foreign trader in the latest fiscal year;
(iv) A copy of the previously granted License for Establishment of the Branch.
Note: The document specified in point (ii) must be translated into Vietnamese and certified or legalized by a Vietnamese diplomatic mission or consular office abroad in accordance with Vietnamese law. The document specified in point (iii) must be translated into Vietnamese and certified in accordance with Vietnamese law.
- Order and procedures for renewal of the License for Establishment of Branches of Foreign Traders in Vietnam
The dossier for renewal of the License for Establishment of a Branch of a foreign trader in Vietnam must be submitted at least 30 days before the License expires.
The foreign trader shall submit the dossier directly, by post, or online (if applicable) to the Licensing Agency.
Within 03 working days from the date of receipt, the Licensing Agency shall examine the dossier and request supplements if the dossier is incomplete or invalid. The request for dossier supplementation shall be made at most once during the entire process of handling the dossier.
Within 05 working days from the date of receiving a complete and valid dossier, the Licensing Agency shall grant the renewal of the License for Establishment of the Branch. In case of refusal, a written document clearly stating the reasons must be issued.
In the event that the renewal of the License for Establishment of a Branch is not yet prescribed by specialized legal documents, the Licensing Agency shall send a written request for comments to the relevant specialized Ministry within 03 working days from the date of receiving a complete and valid dossier. Within 05 working days from the date of receiving the request from the Licensing Agency, the specialized Ministry shall issue a written document clearly stating its approval or disapproval of the renewal of the License for Establishment of the Branch. Within 05 working days from the date of receiving the opinion of the specialized Ministry, the Licensing Agency shall grant or refuse to grant the renewal of the License for Establishment of the Branch to the foreign trader. In case of refusal, a written document clearly stating the reasons must be issued.
