14 Dec Annual Operation Reports For Foreign Representative Offices
Regarding the annual operation report of a representative office of a foreign trader in Vietnam, VIVA would like to provide you with the relevant regulations as follows:
- Foreign trader are entitled to establish their representative office in Vietnam according to Vietnam’s commitments and regulations. The representative office shall have tax code number and seal bearing their name, operate for the purpose within the scope and duration stimulated in their license.
- Vietnam – based representative office of a foreign trader means a dependent unit of the foreign trader. The operation of a representative office shall be safely confined to the conduct of liaison activities, marketing research and promotion of it’s head office’s businesses.
- A representative office is required to mail the annual report on its operations during the year in the form issued by the Ministry of Industry and Trade to the licensing agency.
- A representative office shall be obliged to report, provide documents on or clarify matters relating to its operations at the request of competent state regulatory authorities.
When is a representative office required to submit its annual operation report?
- By January 30th of the following year, every representative office shall deliver in person or mail the annual report on its operations using the form issued by the Ministry of Industry and Trade to the licensing agency.
- Also, upon the request of competent state regulatory authorities, a representative office shall submit reports, documents and other explanatory information on its operations, which are kept at its office for its license renewal/revision during its operation.
What are the main contents of a representative office’s annual report on operations?
- Personnel of the representative office (including the chief of representative and other employees):
– Number and info of current employees.
– Number and info of resigned employees.
- Operations of the representative office:
– Commercial operations (Key activities and result during the year).
– Other activities.
Do avoid and prevent the risks happen:
- Fail to submit the reports on time, there will be a penalty amount up to 40 million VND and a black record will impact to the extension office license process in future.
- Last but not least, the presentation and content of the report is related to the base for comparison with the labor declaration, personal income tax declaration and settlement of each employee and the chief of the office. The presentation and content of these reports also affect the consideration of the duration of the license in subsequent extensions (one, two or five years).
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