Power and Responsibility of Head of representative office or branch in Vietnam

head of representative office or branch in vietnam power and responsibility

Power and Responsibility of Head of representative office or branch in Vietnam

Vietnam joined the World Trade Organization (WTO) in 2007, since there, thousands of foreign investors have been investing in Vietnam in the form of foreign representative offices or subsidiary companies or branches. The Head of representative office or branch shall be aware of his/her power and responsibility in the management of branch or foreign representative office in Vietnam.

head of representative office or branch in vietnam power and responsibility

Power and Responsibility of the heads

  1. The head of representative office or branch shall be responsible for his/her action and the operation of the representative office or branch to his/her head office within the power of attorney.
  2. The head of representative office or branch shall be responsible for his/her activities in case of carrying out activities out of the scope of authorization.
  3. In the absence of the head of the representative office or branch from Vietnam, he/she shall grant the power of attorney to another person by written notice. The power of attorney shall be made with the prior consent of the head office. However, the head of the representative office or branch shall be responsible for exercising rights and obligations specified in the power of attorney.
  4. Upon the expiry of the power of attorney stipulated in clause 3 hereof, if the head of the representative office or branch has yet to return and no additional power of attorney is made, the current authorized person shall be eligible for exercising rights and obligations as the head of the representative office or branch, within the scope of authorization, until the heads return or the parent company appoints another person as the new head of representative office or branch.
  5. In case #001 the head of representative offices or branch from Vietnam is absent from Vietnam for a period of longer than 30 days without any authorization; #002 the head of representative office or branch is dead, missing, detained, sentenced to prison or has no capacity for action, the parent company shall appoint another person as the new head of representative office or branch.
  6. If the parent company authorizes the head of the representative office to sign, adjust or supplement contracts, the head office shall grant the power of attorney by written notice for each conclusion, adjustment, and supplementation.

 

Things that the heads shall not be allowed to do

The head of representative office shall not concurrently hold the following titles:

a) The head of a branch of the same parent company.

b) The head of a branch of another parent company.

c) The legal representative of the same Parent company or others.

d) The legal representative of a business organization incorporated in accordance with the Laws of Vietnam.

The head of branch shall not concurrently hold the following titles:

a) The head of a representative office of another parent company.

b) The head of a representative office of the same parent company.

c) The legal representative of a business organization incorporated under the Laws of Vietnam.

 

Read more:

Transform representative office in Vietnam into subsidiary company – What you need to know.

Representative office in Vietnam – Typical rights and obligations.

Head of representative office or branch in Vietnam must comply with the local laws and regulations on foreign employees

The foreign employees in Vietnam may enjoy a lot of promotions, incentives regarding tax, visa and administrative procedures. However, the foreign employees who work at representative office or branch in Vietnam shall be also complied with the local laws and regulations to avoid and prevent the risks in advance.

There is a list of required compliance procedures for a foreign employee in Vietnam:

Visa| Work permit | Temporary resident card | Personal income tax | Compulsory insurances | Translation, legalization | Driving license

 

As a head of representative office or branch, how to manage the employment of foreign employees in Viet Nam, in the lawful and optimal manner, such as the labor contractsocial insurancepersonal income taxwork permit and temporary resident card? It will be very simple if you can choose and use the expertise person.

Consult Us

Read more:

Full service of compliance procedures for foreign employees in Vietnam

Foreign representative office in Vietnam – Full service for local compliance procedures


VIVA BCS has been providing service for thousands of multinational companies and foreign representative offices in Vietnam. We are able to understand deeply local business regulations as well as identify potential risks in advance that to provide tailored solutions, in the most practical manner, beyond the limitations. We do guarantee your best interests and expectation in everything we do.

We can be your person in charge, hand in hand to take care all of the compliance procedures for foreign representative office and expatriate in Viet Nam, and you can be free from any query or requirement from the local competent state agencies to focus into your most advantage business and expertise.

Please feel free to contact us should you have any queries or questions.

  • Hotline: 1800 1243
  • Phone: (84-28) 7304 0455
  • Email: support@vivabcs.com.vn

 

VIVA BUSINESS CONSULTING.