Open a Sales Office in Vietnam in 2024-25: Process, Benefits, Documents

Establishing a sales office in Vietnam can be a strategic move for businesses looking to tap into the dynamic Southeast Asian market. Vietnam’s growing economy, favorable investment policies, and strategic location make it an attractive destination for foreign companies. This article outlines the essential steps, benefits, required documents, and key requirements for setting up your sales office in Vietnam.

Process to Open a Sales Office in Vietnam

The following process to register a sales office in Vietnam includes:

1. Choose a Business Structure: Determine the appropriate business structure for your sales office, typically a representative office, branch office, or foreign-invested enterprise (FIE).
2. Obtain Investment Registration Certificate (IRC): For foreign-invested enterprises, the first step is to apply for an IRC from the Department of Planning and Investment (DPI).
3. Obtain Enterprise Registration Certificate (ERC): After securing the IRC, the next step is to apply for an ERC. This certificate officially registers your business in Vietnam.
4. Register for Tax Code: Once the ERC is obtained, register for a tax code with the local tax department.
5. Open a Bank Account: Open a corporate bank account in Vietnam to facilitate financial transactions.
6. Lease Office Space: Secure an office space and sign a lease agreement. Ensure the location complies with local zoning laws.
7. Register Labor Use: Register your labor use with the local Department of Labor, Invalids, and Social Affairs (DoLISA).
8. Complete Post-Registration Procedures: Complete other post-registration procedures, such as obtaining necessary licenses and permits for your specific industry.

Benefits for Starting a Sales Office in Vietnam

1. Strategic Location: Vietnam’s proximity to major markets in Asia makes it an ideal hub for regional operations.
2. Growing Economy: Vietnam has one of the fastest-growing economies in the world, offering vast market potential.
3. Favorable Investment Policies: The Vietnamese government offers numerous incentives to attract foreign investment, including tax breaks and simplified regulatory procedures.
4. Skilled Workforce: Vietnam boasts a young and skilled workforce, providing businesses with a strong pool of talent.
5. Trade Agreements: Vietnam is a member of various free trade agreements (FTAs), enhancing market access and reducing trade barriers.

Documents Required to Register a Sales Office in Vietnam

1. Application Form: Completed application form for establishing a sales office.
2. Parent Company Documents: Certified copies of the parent company’s business registration certificate, charter, and financial statements.
3. Resolution of the Parent Company: Resolution or decision of the parent company’s board of directors on the establishment of the sales office.
4. Lease Agreement: Lease agreement for the office premises in Vietnam.
5. Power of Attorney: Power of attorney for the individual responsible for the sales office establishment process.
6. Personal Documents: Copies of passports and other identification documents of the representative head.

Requirements to Set up your Sales Office in Vietnam

1. Legal Representative: The sales office must appoint a legal representative who resides in Vietnam.
2. Office Location: The office must be located in a commercial building and comply with local zoning regulations.
3. Minimum Capital Requirements: While there is no specific minimum capital requirement for a sales office, sufficient capital must be demonstrated to cover initial operational costs.
4. Compliance with Vietnamese Laws: The sales office must comply with all local laws and regulations, including labor laws, tax regulations, and industry-specific requirements.
5. Annual Reporting: The sales office is required to submit annual reports on its operations and financial status to the relevant authorities.

Conclusion

Setting up a sales office in Vietnam involves a clear and structured process, offering numerous benefits for businesses looking to expand their presence in Asia. By understanding the registration process, gathering the necessary documents, and meeting the requirements, businesses can successfully establish a foothold in this vibrant and growing market. Vietnam’s strategic location, favorable investment climate, and skilled workforce make it an attractive destination for foreign enterprises aiming for growth and regional expansion.

Contact OnDemand International for more information.