Establishing a company branch is an important process in the development of a company. Company branch establishment service is a very wise choice for individuals and organizations who are still unfamiliar with the process of implementing the application and procedures for establishing the branch. Furthermore, each type of company will have different requirements for its establishment and will make the implementation difficult. Readers can refer to Viet My services in this article!

1. What is a branch?

According to Article 44 of the Enterprise Law 2020, a branch is a subordinate unit of the company responsible for performing all or part of the company’s functions, including the functions of an authorized representative. The branch’s business activities must be consistent with the company’s current business activities.

2. The process of establishing a branch of a company

Below, Viet My will guide you to prepare documents and carry out procedures to establish a company branch:

2.1 Conditions for establishment of a company branch

a, Host is authorized to establish branch

Subsidiaries can be established by: Joint Stock Company, Joint Stock Company, 1-member Joint Stock Company, at least 2 member joint stock company, Joint Stock Company.

If companies want to expand their business operations, one or more branches can be set up at another address to perform some or all of the current business functions of the parent company.

b, Name the company branch

The branch name is chosen by the company but must follow the following principles:

The name of the branch must be written in Vietnamese letters, F, J, Z, W, digits and symbols.
The branch name must contain the business name and the phrase “branch”.
The exact name of the branch name must not contain the words “company”, “company”

In addition to the name in Vietnamese, the branch is also registered with the name and initials in foreign languages. A foreign name is a name translated from Vietnamese to Latin of a foreign language. Abbreviated names are shortened from Vietnamese or foreign names.

c, The branch’s line of business

When registering branches and business activities, only the registered branches and professions can be registered to the branch-owned company.

If you want to record another operation, you must first record an additional operation for the primary operation before making an additional recording for the next operation.

d, The address of the branch office in operation

The business registration address of a branch in Vietnam’s territory must have the following administrative units:

• Number of houses, alleys, alleys, streets/homes/neighbors/villages
• Community/urban/urban
• Provincial/District/City/City under provincial authority
• Central towns and provinces/cities

The company may establish one or more branches in one location depending on administrative boundaries. In addition, companies can also establish overseas subsidiaries.

e, Head of a branch of a company

The head of a branch is a person who has the full capacity for civil acts appointed by the company, who can be the legal representative of the company or someone else.

2.2 Documents for establishing a company branch

General requirements for documents to establish a company branch include:

• Notice of establishment of a branch office signed by the company’s legal representative (according to the form specified in
• Appendix II-7 issued under Circular No. 01/2021/TT-BKHDT).
• Copy of legal documents of the branch director (no more than 6 months).
• Copy of power of attorney and legal documents of the authorized person (if the authorized person is not the legal representative of the company).

a, Documents to establish a branch of a one-member limited liability company

Your company should prepare:

• Notice of branch establishment is announced by the company’s legal representative
• Resolution/decision to establish a branch of the company owner
• Copy of legal documents of the branch director (no more than 6 months).
• Copy of power of attorney and legal documents of the authorized person (if the authorized person is not the legal representative of the company).

b, Documents to establish a branch of a limited liability company with 2 or more members

• Notice of branch establishment signed by the legal representative of the branch, who is the company branch director (According to the form specified in Appendix II-7 issued with Circular No. 01/2021/TT-BKHDT) .
• Resolution/decision and meeting minutes of members of a limited liability company with two or more members on the establishment of a branch. Copy of legal papers of the head of the branch who is the company branch director (no more than 6 months).
• Power of attorney and copy of legal documents of the authorized person (if the authorizing person is not the legal representative of the company).

c, Documents for establishing a branch of a joint stock company

• Notice of establishment of a joint stock company branch given by the legal representative of the company (According to the form specified in Appendix II-7 issued with Circular No. 01/2021/TT-BKHDT).
• Resolution/decision and meeting minutes of the Board of Directors of the joint stock company on the establishment of the branch.
• Copies of documents of the individual who is the head of the branch (not older than 6 months).
  Power of attorney and copy of legal documents of the authorized person (if the authorizing person is not the legal representative of the company).

d, Documents for establishing a branch of a partnership company

Your company must prepare:

• Declaration signed by the company’s legal representative on the establishment of the branch (according to the form Appendix II-7 Circular 01/2021/TT-BKHDT).
• Resolution/decision and meeting minutes of the board of members on the establishment of a partnership branch.
  Copy of legal documents of the branch director (maximum 6 months).
• Power of attorney and copy of legal documents of the authorized person (if the authorizing person is not the legal representative of the company).

2.3 Procedures for establishing a company branch

Step 1: Approve the decision to establish a branch and appoint a branch representative.
Step 2: Submit application for Branch Registration Certificate at the Provincial Business Registration Office where the branch is located.
Step 3: Pay the branch registration fee
Step 4: Receive the Branch Operation Registration Certificate from the Business Registration Office.
Step 5: Carve the company branch seal.
Step 6: Open a bank account for the company branch.
Step 7: Register electronic digital signature and electronic invoice for the company branch

2.4 Expenses incurred in establishing a company branch

Fees for establishing an enterprise branch will include fees payable to state agencies and fees for business services. Specifically, the fees for establishing a State branch are as follows:

• Fee for issuing a certificate of registration for establishment of a branch
• Cost of disclosure of branch establishment information
• The cost of engraving a seal for the company branch
• Electronic signature purchase fee for branch office
• E-bill registration fee and bill issuance notice
• The cost of making a company branch sign

2.5 What taxes does the company branch have to pay?

After completing the procedures for establishing branches and obtaining licenses, the company still needs to do the following:

a, Name two taxes and pay the lesson fee:

According to Decree 139/2016/ND-CP of the Government and Circular 302/2016/TT-BTC of the Ministry of Finance: The company must submit a declaration and pay a lesson fee of VND 1,000,000 to the branch. VND 000/year.

In case the Branch is established before July 1 every year, the subject fee must be paid in full: VND 1,000,000/year. If the branch is established after July 1 every year, one-half of the lesson fee for the first year of its establishment: 500,000 VND/year.

The Branch shall declare and pay the subject fee within 30 days from the date of issuance of the Registration of Branch Operation.

b, Buy and use digital signatures to declare electronic tax payment

To pay and pay electronic taxes, your business must purchase electronic signatures (also known as notification codes).

After the branch is issued a certificate of operation, the company staff sends the branch registration information to the tax agency, and sends the tax return form if the branch is located in the province or city under the Central Government. In addition, branch offices are required to report VAT on branch income and expenses each quarter.

c, Conducting branch sign:

The branch must hang the sign of the branch in the branch with the contents: Management agency name (operating certificate authority i.e. the Department of Planning and Investment), branch name, manager address, phone number. or email address (if any).

3. Viet My company branch establishment service

Establishing a branch means growing your business and developing your own brand. If you are too busy managing and planning business for a new branch, let Viet My handle disputes arising from the establishment of a branch. Here we would like to share some useful information for you. If you have any questions about application procedures that need to be answered, you can contact Viet My for completely free advice on procedures for establishing a business branch.

3.1 What preparations do you need to make when using the service establishing Viet My company branch

When preparing to establish a branch, the company needs to prepare documents as follows:

• You must prepare a copy of the identification paper itself, accompanied by a copy of the actual identification paper (within no more than 3 months).
• Tax code, copy of business registration license
• You must choose the name of the company branch (the name of the company branch must not overlap with the previous companies).
• Select an address that is legally used for the business.
• Personal information of the representative of the branch of the company as stipulated by law.
• You must choose a business career in accordance with the law on business registration.

3.2 Benefits when using Viet My’s company branch establishment service

Company branch establishment service is Viet My’s corporate legal consulting service serving customers nationwide. Viet My company’s full service of establishing a business, registering an individual household, and establishing a business license will advise and guide customers in detail on each step of preparation and necessary information. Established according to regulations, carry out all procedures, create company establishment documents, submit company establishment documents to the establishment licensing agency.

When customers use Viet My’s full company establishment service, we will proactively complete all procedures related to business establishment for you, and are responsible for 24/7 support from the moment the customer The customer has an idea to establish a business until the customer receives a license to establish a business. Valid business establishment license. In addition, Viet My will engrave the seal, post the declaration of establishment on the government website in accordance with the law, and declare initial tax for customers.

Viet My’s commitment:

Viet My commits to customers when using the service of establishing company or business branches:

• There are no fees – the price quoted by Viet My is the package price.
• Timely provision of registered branch certificate.
• Free consulting support for branch accounting.
• Free consultation support on regulations when establishing a branch: name, address….
• Free consulting support during office hours.

4. Frequently asked questions

4.1 Does the branch have legal status?

According to the provisions of Article 84 of the 2015 Civil Code, branches and representatives of legal entities are:

A branch is a unit dependent on a legal entity, not a legal entity.
The branch is responsible for performing all or part of the legal entity’s tasks.

4.2 How much is the state fee when carrying out procedures to establish a company branch?

State fees for implementing branch procedures are specified in Circular No. 47/2019/TT-BTC.

50,000 VND for documents submitted directly at the business registration facility.
There is no online registration fee. Information disclosure fee: 100,000 VND

4.3 Can documents to establish a company branch be submitted online?

Have. Business registration documents are currently submitted online via the National Electronic Information Portal https://dangkytinhdoanh.gov.vn. Businesses register changes online and do not need to submit paper documents when registering a business.

4.4 Is it necessary to disclose information about the establishment of a company branch after establishment?

When completing the procedures for setting up a branch office, you will be issued a Branch Office Registration Certificate. Next, the company must submit branch registration information to the tax authority. If the branch is located in another state/city, please submit the original tax return at the same time. In addition, the branch is responsible for submitting quarterly and annual tax reports to the tax authority.

4.5 How long does it take to establish a company branch?

Within 07 working days from the date of receiving the results of issuance of the Branch Business Registration Certificate, the company must send a written notification to the Department of Trade of the province where the company is headquartered. Supplement business registration documents and re-issue the Business Registration Certificate.

Company branch establishment service is a smart choice to expand business activities. By using this service, you can save time, ensure legal compliance, and focus on your core business. Take advantage of our company branch establishment service to achieve your business development goals effectively and reliably. In addition, if you need a reputable support party, please contact Luat va Ke Toan Viet My immediately for a free consultation.

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