Before a joint stock company is allowed to operate, the business owner must have a notice form to establish a joint stock company branch. When establishing a business, the business registration procedure must be carried out at the State agency. country of business registration in accordance with the provisions of law. After being in operation for a period of time, this enterprise can still establish more branches but must have a notice to establish a joint stock company branch. Readers are invited to learn about the Form of Notice of Establishment of a Joint Stock Company Branch.

1. Concept of company branch

The concept of a branch is regulated according to Clause 1, Article 44 of the Law on Enterprises 2020, detailed as follows:

“Article 44. Branches, representative offices and business locations of enterprises

1. A branch is a dependent unit of an enterprise, responsible for performing all or part of the enterprise’s functions, including the function of authorized representation. The branch’s line of business must be consistent with the line of business of the enterprise.”

Thus, it can be understood that a branch is a subordinate unit of a business, a branch of a company when established with the purpose of expanding its scale, as well as the business market, attracting customers. add customers to the business, the branch can perform the function of acting as an authorized representative for the business. Also according to current regulations, branches do not have legal status.

Current law allows businesses to set up one or more branches in the same locality according to the administrative unit boundaries. However, when establishing a new branch, the enterprise sends the branch’s operation registration documents to the Business Registration Office under the Department of Planning and Investment where the enterprise has its branch.

2. Notice of establishment of business location of joint stock company

According to Decree 01/2021/ND-CP, enterprises must notify the establishment of a specific business location when completing procedures for newly established companies as follows:

– Enterprises can establish business locations at addresses other than where the company’s headquarters or branches are located;

– Within 10 days from the date of making the decision to establish a business location, the enterprise will have to send a notice of establishment of a business location to the Business Registration Office where the company’s business location is located;

– Notice of establishment of a place of business signed by the legal representative of the enterprise itself in the event that the place of business belongs to the enterprise or may also be signed by the head of the branch office in the case of a place of business affiliated with that branch.

Within 03 working days from the date of receiving valid documents, the Business Registration Office issues an Operation Registration Certificate to the branch, accordingly, the representative office updates information about its business location in National database on business registration for businesses. In case their business needs it, the Business Registration Office will issue a Business Location Registration Certificate to the business. If the dossier is not valid, the Business Registration Office will notify the business in writing of the content that needs to be amended or supplemented.

3. Instructions for writing a form of notification of establishment of a joint stock company branch

For the form of Notice of Establishment of a Joint Stock Company Branch, readers can refer to our writing instructions below:

(1) In case a company branch is granted an Operation Registration Certificate to the branch after the start date of operation when fully declared, the start date of operation is the date the branch is granted the Certificate.

(2)  In case the accounting year is based on the calendar year, it must be recorded from January 1 to December 31. In case the accounting year follows a fiscal year different from the calendar year, the date and month starting the accounting year must be recorded as the first day of the quarter; clearly state the date and month of the end of the accounting year as the last day of the quarter; The total time from the start date to the end date of the accounting year must be 12 months or 4 consecutive quarters.

(3) Enterprises as well as branches are responsible for ensuring the conditions for using self-printing, ordering, electronic, purchasing invoices from tax authorities in accordance with the current law.

(4) In this case, you can register to operate a branch under the enterprise, the company’s legal representative will directly sign this section.

– In case the notice of establishment of a business location is still under a branch, the legal representative of the business or the head of that branch signs this section directly.

– In case the Court or Arbitration appoints a person to carry out business registration procedures, the designated person will sign directly in this section.

4. Procedures for establishing a joint stock company branch

4.1. Documents to establish a branch of a joint stock company

– Notice of establishment of a branch or representative office of a joint stock company signed by the legal representative of the enterprise;

– Copies of resolutions, decisions and copies and meeting minutes of the Board of Members for joint stock companies; Resolutions and decisions of the company owner for joint stock companies on the establishment of branches and representative offices;

– Copies of personal legal documents for the head of the branch or representative office.

4.2. Order and procedures for establishing a joint stock company branch

– In case of registering to establish a direct branch of a joint stock company:

+ The legal representative of the joint stock company or the person authorized to help carry out the procedures for establishing a branch submits the application for branch establishment registration at the Business Registration Office of the Department of Planning and Investment where where the branch is headquartered.

+ When receiving the documents, the business registration office will issue a receipt.

– In case of quick registration of establishment of a joint stock company via electronic network

After preparing a full set of documents and scanning documents in PDF format, the registrant can submit the application via the National Business Registration Portal: https://dangkykinhdoanh.gov.vn/vn/

5. Frequently asked questions about the sample notice of establishment of a branch of a joint stock company

5.1. Time limit for processing documents to quickly establish a joint stock company

– If the file to establish a branch of a joint stock company is valid, within 3 working days, the company will receive a License to establish a company branch according to the provisions of law.

– In case the documents are invalid, the responsible authorities must notify the business with the reason. Businesses have more time to make amendments and supplements, as well as to complete documents and submit them to the Business Registration Office.

5.2. What should be prominent in the content of the notification form?

• Information about businesses, establishing additional branches/ /representative offices/ establishing business locations.
• Content of notice of registration of operations at branch/representative office/Notice of establishment of business location.
• Then write the commitment and sign clearly stating your full name.

5.3. When must we notify the registration of branch operations of a joint stock company?

When registering the operation of a branch or representative office or announcing the establishment of a business location, the enterprise must send a Notice of registration of branch/representative office operations to the State Agency. business registration.

Specifically, according to Article 45 of the Law on Enterprises 2020, when establishing a branch or representative office in the country, the enterprise can send the application to register the operation of the branch or representative office to the State Agency. for competent business registration where the enterprise has its branch or representative office.

Within 10 days from the date of decision on the business location, the company must notify the business location to the Business Registration Authority.

5.4. When drafting a notice of establishment of a joint stock company, what should you keep in mind?

(1): In case the branch/representative office/business location has been issued a Certificate of registration of branch/representative office/business location immediately after the declared start date of operation The start date of operation is only the date the branch/representative office/business location is granted a Certificate.

(2): In case the accounting year is based on the calendar year, record from January 1 to December 31. In case the accounting year according to a fiscal year is different from the calendar year, write the date and month starting the accounting year as the first day of the quarter; The day and month of the end of the accounting year will be the last day of the quarter; The total time from the start date to the end date of the accounting year must be 12 months or 4 consecutive quarters.

(3): Enterprises and branches must be responsible for ensuring the conditions for using self-printed invoices, ordered printing, electronic invoices, and purchasing invoices from tax authorities in accordance with the provisions of law. State proposed.

(4): In case of registering the operation of a branch/representative office/affiliated business location of an enterprise, the legal representative of the enterprise signs directly in this section.

5.5. Should I establish a branch or representative office of the company?

There are two main differences that can differentiate  branches and representative offices: Branches can carry out profitable activities, which can be accounted for with accountants independent of the business; As for representative offices, they are not allowed to do that.

If a business wants to expand its business model and determine the function of the model, including signing commercial contracts as well as trading and distributing products, it can choose a company branch. . And vice versa, if the company opens a corporate representative office, the main function of the representative office is only to sign cooperation contracts on behalf of the company on behalf of the parent company. Trading or signing profit-making contracts is not allowed.

Above is all the information about the “Form of Notice of Establishment of a Joint Stock Company Branch” that VIET MY LAW AND ACCOUNTING provides to our readers. Hopefully this article will help you understand more about this notification form. We are very pleased to answer your questions.