LATEST NEWS

MY BUSINESS IN ASIA

Registration of a Commercial Branch in Vietnam

A commercial branch is the subsidiary of the foreign parent company, that has been formed in accordance with Vietnamese law.  It is important to note that a commercial branch is not a separate legal entity from its foreign parent company.

The main requirement to establish a Commercial Branch is that the foreign parent company must have operated in its home jurisdiction for at least five years.

The branch is permitted to conduct trading and commercial activities, including executing contracts, earn profit to remit to the parent company in its home jurisdiction as well as opening a bank account in Vietnam.
 
A commercial branch is not tax-resident in Vietnam. Hence, corporate income tax and the effect of international tax treaties require careful consideration before a decision is taken whether to open a commercial branch or an LLC. 

Should you require any further information or have any inquiries, please do not hesitate to contact us.