VI In the context of a dynamic economy and the trend of expanding business activities nationwide, establishing branches in other provinces and cities has become an important strategy for many enterprises. However, the process of registering operations for branches in other provinces can bring many challenges in terms of law and administrative procedures. Therefore, mastering the regulations and carefully preparing documents are key factors to ensure that the branch registration process goes smoothly and effectively.
1. Concept of a business branch
A 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. Currently, a branch is one of the models that enterprises often consider when they need to expand their business activities.
According to the Enterprise Law, enterprises have the right to establish branches and representative offices domestically and abroad. Enterprises can establish one or more branches in a locality according to the administrative unit’s boundaries. Accordingly, depending on the need to expand business activities, enterprises can choose to register to establish a branch in the same province or a branch in another province. However, the branch’s business lines must be consistent with the business lines of the enterprise.
2. Application for registration of a branch in another province of an enterprise
According to the provisions of Article 45 of the Enterprise Law 2020 and Article 32 of Decree No. 01/2021/ND-CP of the Government on business registration, the application for registration of a branch in another province of an enterprise includes:
- Notice of establishment of a branch according to the form in Appendix II-7 of Circular No. 01/2021/TT-BKHĐT on guidance on business registration signed by the legal representative of the enterprise;
- A copy of the resolution, decision and a copy of the minutes of the meeting of the Board of Members for a limited liability company with two or more members, a partnership company, of the Board of Directors for a joint stock company; a resolution, a decision of the company owner for a one-member limited liability company on the establishment of a branch;
– A copy of the legal documents of the individual for the head of the branch;
– A letter of authorization for the individual to submit the application and receive the results (in case the legal representative of the enterprise does not directly submit the application).
– A copy of the personal legal documents of the authorized person.
3. Procedures for registering the operation of a branch in another province of the enterprise
The enterprise prepares 01 set of documents and submits the application for registration of the operation of a branch in another province to the Business Registration Office where the enterprise has its branch.
Within 03 working days from the date of receipt of the dossier, the Business Registration Authority shall be responsible for reviewing the validity of the dossier and issuing the Certificate of Registration of Branch Operation; in case the dossier is invalid, the Business Registration Authority shall notify in writing the contents that need to be amended or supplemented to the enterprise. In case of refusal to issue the Certificate of Registration of Branch Operation, it shall notify in writing the enterprise and state the reasons.
