PROCEDURES FOR ESTABLISHMENT OF COMPANY BRANCH

✨ The company wants to develop and expand its business in the near future? However, the procedure and process are so complicated that you don't know what to prepare and how long does it take?

✨ Tasco Tax Agent will help you solve questions about the process and procedures to prepare for complete and accurate documents through the article below:

1. What is a corporate branch?

🍃 A branch is defined as a dependent unit of an enterprise. Carrying the task of performing part or all of the functions of the enterprise, even the function of authorizing the enterprise or the function of an authorized representative. The branch's line of business needs to be fitted with the company's line. However, a branch is still just a unit under the company and has no independent legal status.

2. Conditions for establishing a company branch

⚡ Conditions for branch owners:

• To establish a company branch, the first thing to do is to establish a company and obtain a business registration certificate first.
• Only after the company has the Certificate of Business Registration, it is possible to carry out the procedures for establishing a branch. Therefore, it is not possible to carry out the procedure for establishing a branch together with the procedure for establishing a company.

⚡ Conditions on the branch name

• The branch name must be written in letters of the Vietnamese alphabet, the letters F, J, Z, W, numbers, and symbols. The name of the branch must include the company name with the phrase "Branch" in the case of a branch. For example: The company name is: Viet An Co., Ltd., the branch name must have the phrase: Viet An Co., Ltd branch at …….
• In addition to the name in Vietnamese, the branch of the enterprise can register the name in a foreign language and abbreviations.

⚡ Conditions for the head office of the branch

• The head office of the branch is the contact place of the enterprise in the territory of Vietnam, whose address is determined including house number, hamlet, commune, wards, townships, districts, towns, provincial cities, provinces, and centrally-run cities; phone number, fax number, and email (if any).
• Enterprises have the right to set up branches in the country and abroad. An enterprise can set up one or more branches in a locality according to administrative boundaries.

⚡ Conditions on business line

• Business lines of the branch must be consistent with the business lines of the enterprise.
• Accordingly, the branch of the company can only register the line that the company has registered.

⚡ Conditions for the head of the branch

• The head of the branch is an individual with full civil act capacity; It can be another person or a company member.
• The head of a branch is not a person whose tax identification number is suspended on the national tax registration and business registration system.

3. Select type of branch operation

Enterprises can choose independent or dependent branch accounting. The common point of the two types is that both types of branches have no legal entity. Both have the right to generate business activities, to issue VAT invoices independently of the company. License tax for any branch must be paid at VND 1,000,000/year. Acting under authorization and assignment from the company. However, each firm has specific differences regarding tax reporting:

🍀 Establishing a branch of an independent accounting company

• Tax: proactively determine taxable expenses and taxable income.
• Be responsible for declaring and paying corporate income tax regardless of the business performance of the company as well as other branches in the same company.
• Complete bookkeeping, financial statements,...
• The accounting department at the independent accounting branch is an accounting unit according to the Law on Accounting.

🍀 Establishing a branch of a dependent accounting company

• Transferring revenue and expense data and documents to the company for general accounting at the end of the year in financial statements.
• The company combines data of other branches of the same company and the company's operations to account for and fulfill corporate income tax obligations.
• The figures in the bookkeeping are part of the company's bookkeeping
• The company's accounting unit includes the branch accounting department.

4. Company branch establishment documents

• Notice of registration of branch establishment
• Decision on the establishment of a branch
• Minutes of the Members' Council on the establishment of a branch (for two-member limited liability companies and joint-stock companies)
• Decision to appoint the head of the branch
• A certified copy of the identity card of the person who established the branch
• Authorization letter for the person to carry out this procedure
• A certified copy of the identity card of the person carrying out the procedure

5. Where to submit the application for the establishment of a branch of the company

• When there are enough documents, the applicant or the service provider will submit the application and pay fees and charges at the Department of Planning and Investment at the place where the company's head office is planned. Within 5 days from the date of application, the specialist will handle the application and make a decision to accept the application as valid or not.
• In case of refusal to issue a branch operation registration certificate, a written notice shall be sent to the enterprise. The notice must clearly show the reason; amendments and supplements (if any).
• The business registration authority shall issue a branch operation registration certificate if the application is valid

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✨ Give your worries to TASCO to deal with. With the service of Establishing a branch, representative office, business location of TASCO, after only 3 working days, your company will receive a certificate of branch operation registration and a round seal of the company branch.

Procedure for service registration of branches, representative offices, and business locations at TASCO:

Step 1: Compose documents and send them to customers to sign and stamp.

Step 2: Submit the application directly at the Business Registration Office or through the Website of the National Portal on Business Registration.

Step 3: Follow up the application process, receive the certificate of branch operation registration at the Business Registration Office after 3 working days.

Step 4: Engrave a circle mark for the company branch.

Step 5: Announce information about the establishment of a company branch.

TASCO - Tax agent responsible for all service

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Please contact TASCO for a free consultation:

 Hotline: 086.486.2446 - 0975.08.68 (zalo)

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