What to do when foreign investors want to adjust operation licenses of branches?

What to do when foreign investors want to adjust operation licenses of branches?

The market is constantly changing, which has led to the changes of structure of products, the scale and content of investment projects, and the structure of branches and representative offices. In this case, the foreign investor must carry out procedures for adjusting operation licenses of their representative offices or branches. So what to do when you want to modify the license? The following article will help you understand the procedure.

1. Things to do when you want to adjust operation licenses of branches

Firstly, having a good understanding of cases where changes are needed to be made to operation licenses of branches or representative offices of foreign businessmen:

- Changes in the name or location of the head office of foreign businesses.

- Changes in business activities of a foreign business that have direct influences on the operations of its corresponding branch in Vietnam.

- Replacement of the head of the representative office or branch.

- Changes in the name of the representative office or branch.

- Changes in the operations of the representative office or branch.

- Change in the location of the representative office in a province or provincial city or in one geographical area that are under management of a competent agency

- Changes in the location of the branch.

Secondly, foreign businesses need to prepare the application for adjusting operation licenses of branches. The application includes:

- An application form for adjustments to the License for Establishment of the representative office using the form promulgated by the Ministry of Industry and signed by a competent representative of the foreign trader.

- Documents as proof of adjustments. To be specified:

+ In case of changing licenses due to changes in the name or location of the head office: copies of legal documents as proof of changes in the name or location of the head office of a foreign trader released by competent authorities.

+ In case of changing licenses due to changes in the lines of business of the foreign trader affecting the operations of its branches in Vietnam: copies of legal documents as proof of changes in the lines of business of the foreign trader released by competent authorities.

+ In case of changing licenses due to replacement of the head of the representative office or branch: a letter of appointment of the new head of the representative office or branch; copies of the passport or ID card (for Vietnamese) or copies of the passport (for foreigners) of the new head of the representative office/branch; proof of fulfillment of personal income tax liabilities of the former head of the representative office/branch at the time of changes.

+ In case of changing licenses due to changes in the location of the representative office in a province or provincial city or in one geographical area that are under management of a competent agency: copies of memorandum of understanding (MOU) or leasing agreements or documents as proof of the right to use a location as the representative office or branch; copies of documents on the expected locations of the representative office or branch prescribed by law

Thirdly, understanding the procedure

Initially, within 60 days from the date of changes prescribed by law, the foreign trader shall apply for adjustments to the License for Establishment of their representative office or branch.

The foreign trader shall submit their application to the licensing agency where the representative office is expected to be located directly or by post or online (where applicable).

Next, within 03 working days from the date of receipt of the application, the licensing agency shall examine such application and request the applicant to complete the application (if the application is incomplete)

Apart from cases where the written dossier must be sent to get opinions from specialized agencies, within 05 working days from the date of receipt of the valid application, the licensing agency shall send the applicant a written notification of whether the adjustments to the license or establishment of the representative office or branch are approved or not. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

In case of adjustments to Licenses for establishment of branches or representative offices that have yet to be governed by specialized legislative documents, the licensing agency shall submit a written request for directions to the relevant Ministry within 03 working days from the date of receipt of the valid application.

Thirdly, within 05 working days from the date of receipt of the request for directions from the licensing agency, the relevant Ministry shall submit the licensing agency a written notification of whether they approve the application for adjustments to the License for Establishment of the branch, representative office.

Finally, Within 05 working days from the date of receipt of the notification from the relevant Ministry, the licensing agency shall send the applicant a written notice of whether the adjustments for the License for Establishment of the representative office or branch is approved or not. In case of rejection, the licensing agency shall send the applicant a written notice in which reasons for rejections shall be specified.

2. Benefits of consultation from lawyers on the procedure

When having lawyers consulted on procedure for adjustments, the client will clearly understand the procedure for adjusting the establishing license of the representative office for foreign traders, and assure that the procedure is carried out within the prescribed time.

Experienced and Professional lawyers with knowledge on the law will advise clients on what to prepare for the procedure, make sure that the client's legal rights and interests are performed in the best way. At the same time, in order to save time and minimize costs, Lawyers can also represent clients to prepare documents and carry out all necessary procedures.

Consultation on matters related to the procedure for adjustments to Licenses for establishment of branches or representative offices for foreign traders at HTC Vietnam Law Firm

HTC Vietnam Law Firm would like to provide consultation on matters related to the procedure for adjustments to Licenses for establishment of branches or representative offices for foreign traders for clients as follows:

- Consultation on application for adjustments to Licenses for establishment or representative offices

- Consultation on Penalty for not adjusting representative office license;

- Consultation on extension of representative offices of foreign traders;

- Consultation on drafting and checking related legal documents;

- Consultation on termination of operation of foreign representative offices in Vietnam

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Nguyen Thuy Hien/187; Date: 31/3/2022

Translator: Vu Ngoc Anh)