FOREIGN COMPANY BRANCH OFFICE SETUP SERVICES IN VIETNAM (2026): NOTES ON ESTABLISHING BRANCHES OF FOREIGN COMPANIES IN VIETNAM
Vietnam has become an increasingly attractive destination for foreign businesses looking to expand in Southeast Asia thanks to its growing economy, favorable investment environment, and strong international trade connections. To enter the Vietnamese market and carry out business activities more efficiently, many overseas companies choose to establish branch offices as an extension of their parent company.
Although this option offers several advantages, foreign enterprises must still comply with a range of legal requirements and administrative procedures under Vietnamese law. Understanding the establishment process, licensing conditions, and post-establishment obligations is essential to avoid unnecessary delays and legal risks.
In this article, we will outline the essential information related to branch office establishment in Vietnam, helping foreign investors better prepare for their business expansion plans.
Prospective clients seeking assistance with procedures for establishing a foreign company branch office in Vietnam are kindly invited to contact Dai Quang Minh Law Firm via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Law Firm provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
I. What is a company branch?
According to the provisions of Article 84 of the Civil Code 2015, a branch is a dependent unit of a legal entity, not a legal entity. The branch is responsible for performing all or part of the functions of the legal entity.
According to the provisions of Clause 1, Article 44 of the Law on Enterprises 2020, a company branch is a dependent unit of the enterprise, responsible for performing part or all of the functions of the enterprise, including the function of authorized representative.
A company branch is different from a company representative office in that if the representative office does not have the business function of the company, the branch has the business function and must do business in the right industries registered by the company.
II. Requirements to set up a branch of company in Vietnam
Branch name condition
- Branch names must use letters in the Vietnamese alphabet, and can also be combined with letters F, J, Z, W, numbers, and symbols. T
- The branch name must include the company name followed by the phrase “Branch”.
- The branch name must be written or posted at the branch headquarters. The branch name is printed or written in smaller font size than the Vietnamese name of the enterprise on transaction papers, documents, and publications issued by the branch.
- In addition to names in Vietnamese, branches can register names in foreign languages and abbreviated names. A name in a foreign language is a name translated from a Vietnamese name into one of the foreign languages in the Latin script. Abbreviated names are abbreviated from Vietnamese names or names in foreign languages.
Conditions for branch headquarters
- The branch’s headquarters is the contact location of the enterprise in the territory of Vietnam and must have a specific address, including house number, alley, lane, street, road, hamlet, hamlet, commune, etc. wards, towns, districts, districts, towns, provincial cities, provinces. The head office also needs a phone number, fax number, and email (if any).
- The company can place one or more branches in a locality according to administrative boundaries. In addition, businesses can also establish a company branch abroad.
Industry and business conditions of the branch
- The branch’s business line must be similar to the company’s business line. Branches can only be registered to carry out professions that were originally registered by the company.
- If you want to register another business line, you need to additionally register that business line for the main enterprise first and then perform additional registration for the branch later.
Conditions for head of the branch
The head of the branch must be an individual with full civil capacity. This person can be another person or a member of the company. However, the head of the branch must not be in the case of having his tax code suspended on the national tax registration and business registration system.
III. Conditions for establishing a branch of a foreign company
According to Article 8 of Decree 07/2016/ND-CP, foreign traders are granted a Branch Establishment License when they meet the following conditions:
- According to commitments in international treaties;
- Foreign traders have been operating for at least 5 years from the date of establishment or registration;
- In case the Enterprise Registration Certificate or equivalent document of a foreign trader stipulates an operating term, that term must be at least 01 year from the date of submission of the application;
- The content of the Branch’s operations must be consistent with Vietnam’s market access commitments in international treaties to which Vietnam is a member and following the business lines of foreign traders.
IV. Establishing conditions according to specialized laws
Conditions for establishing a branch of a foreign securities company in Vietnam
According to Article 76 of the Securities Law 2019, a foreign securities company is allowed to establish a branch in Vietnam when it meets the following conditions:
- Have not yet established or contributed capital to a securities company or securities investment fund management company in Vietnam where foreign securities companies own more than 49% of charter capital.
- The minimum allocated capital for branches of foreign securities companies in Vietnam is 10 billion VND (Clause 2, Article 175, Decree 155/2020/ND-CP).
- There are sufficient facilities, techniques, equipment, office equipment, and technology systems following the professional process of securities business activities.
- There is a (General) Director, at least 03 employees with securities investment consulting practice certificates, and at least 01 compliance control employee. The (General) Director must meet the standards according to Clause 5, Article 74 of the Securities Law 2019.
Conditions for establishing foreign bank branches in VietnamForeign banks that want to establish branches in Vietnam must comply with the conditions according to Clause 3, Article 29 of the Law on Credit Institutions 2024.
- Foreign bank branches must have a minimum allocated capital of 15 million US dollars (USD) (Article 2 of Decree 86/2019/ND-CP).
- Managers, executives, and members of the Supervisory Board must meet the standards and conditions specified in Article 41 of the Law on Credit Institutions;
- The activities expected to be carried out in Vietnam must be activities that the foreign credit institution is currently permitted to carry out in the country where the foreign credit institution is headquartered.
Conditions for establishing branches of foreign insurance enterprises in Vietnam
To establish a foreign insurance company branch in Vietnam, it is necessary to meet the conditions prescribed in Article 67 of the Law on Insurance Business 2022 and Article 11, Article 36 of Decree 46/2023/ND-CP, specifically:
- Only establish branches in the field of foreign non-life insurance or foreign reinsurance.
- Foreign insurance enterprises are allowed by the foreign state insurance management agency where the enterprise is headquartered to establish a branch in Vietnam to operate within the scope of insurance operations that the enterprise is licensed to do. business.
- Foreign insurance enterprises have at least 07 years of experience in the field expected to apply for a license to operate in Vietnam.
- Regarding legal capital: Minimum allocated capital of branches of foreign reinsurance enterprises according to Decree 46/2023/ND-CP.
- The capital source for establishing a branch is a legal source, not using loan capital or investment trust capital in any form.
V. Notes on establishing branches of foreign companies in Vietnam
- Notification obligation: Within 30 days from the date of officially establishing a branch abroad, the enterprise must notify in writing the Business Registration Office where the enterprise is headquartered. The notice must be accompanied by a copy of the branch or representative office registration certificate or equivalent documents.
- Reporting obligation: Before January 30 every year, the foreign branch is responsible for sending a report according to the form of the Ministry of Industry and Trade on its activities in the previous year by mail to the Licensing Agency.
- Tax obligations: Implement accounting regime according to Vietnamese law; In case it is necessary to apply another common accounting regime, it must be approved by the Ministry of Finance of the Socialist Republic of Vietnam.
- License term: The license to establish a branch of a foreign trader is valid for 05 years but does not exceed the remaining term of the Business Registration Certificate or equivalent document of the foreign trader in this case. If that document has a deadline. Foreign traders may extend their Representative Office Establishment License or Branch Establishment License upon the expiration of the term specified in the License.
Why choose Dai Quang Minh LawFirm
With years of practical experience in legal consulting, Dai Quang Minh Law Firm is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Law Office:
Human Resources: Established in September 2009, with over 15 years of practical experience, Dai Quang Minh Law Firm brings together a team of lawyers and legal experts with long-standing expertise in private economic groups nationwide.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Law Firm.
Professionalism and Experience: Dai Quang Minh Law Firm has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Law Firm's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Law Firm ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Law Firm has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Law Firm is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Law Firm provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Law Firm is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
Prospective clients seeking assistance with procedures for a foreign company branch office in Vietnam are kindly invited to contact Dai Quang Minh Law Firm via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Law Firm provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
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