In general, foreign enterprises may freely establish a Representative office for the purpose of collecting and providing information in Viet Nam Market.
As the Vietnamese regulation, the Department of Industry and Trade in the province is in charge of issuing a license for setting up a Representative office. One force condition is required setting up Representative office in Viet Nam foreign enterprise must be established at least for 1 year.
So, the structure of Representative office is quite is simple, it depends on activities of Mother company business and represents for mother company in Viet Nam to contact with clients, work with clients, research market, follow and control the order, checking the status of business between mother company and clients.
But Representative Office can not make/sign any commercial contract directly with clients in Viet Nam. Representative Office does not pay enterprise tax but do pay personal income tax/social insurance for any staffs are works in Viet Nam.
The management structure is include
– head of the office (appoint by Mother Company): to control all activities in Viet Nam
– and staff ( if any): Support to the head of Office.
Salary will be paid by the mother company through Rep Office in Viet Nam.