A branch is a dependent unit of the enterprise, responsible for performing all or part of the functions of the enterprise, including the function of authorization for the enterprise, including the function of authorized representative. Although a branch is allowed to carry out business activities, it is only a unit under the company and has no independent legal status.

    The advantage of establishing a branch is that the branch can operate as a parent company, has the right to register its own seal, and sign economic contracts on behalf of the parent company. A branch can also declare and pay taxes separately as an independent unit if it is registered as an independent accounting branch. This makes it convenient for customers to just go to the nearest branch to transact instead of going directly to the company’s head office.

    Dossier of establishment of a company branch

    • Announcement of branch establishment
    • A written decision and a copy of the meeting minutes of the Members’ Council, for limited liability companies with two or more members, of the company’s owner, or of the Members’ Council or the company’s president, for companies; single-member limited liability company, of the Board of Directors, for joint-stock companies, of general partners, for partnerships, on the establishment of a branch;
    • A valid copy of the decision on appointment of the head of the branch;
    • A valid copy of one of the personal identification papers of the head of the branch: For the head of the branch who is Vietnamese: Provide a notarized copy of the identity card or citizen identification card or Passport; For the head of the branch who is a foreigner: Provide a notarized copy of the Passport
    • Power of attorney for the applicant

    Implementation time

    03 working days from the date of submission of valid documents

    Taxes to be paid

    License Tax

    – Independent accounting branch: Declare and pay license tax at the branch management agency.

    – Dependent accounting branch:

    • In case the branch is located in the same province as the head office, the license tax declaration must be submitted at the head office tax office.
    • In case the branch is located in a different province from the head office, the declaration and license tax shall be submitted at the branch.

    VAT Tax

    -Declaring and paying VAT at the branch, if one of the following conditions is satisfied:

    • Independent accounting branch,
    • Branches other than the province with the head office:

    – Declare and pay VAT at the head office, if one of the following conditions is satisfied:

    • Dependent accounting branch,
    • No revenue is generated, or
    • Same province as head office

    In case the branch has a seal, a bank deposit account, directly sells goods and services, fully declares input and output value-added tax, and needs separate tax declaration and payment, it must register to pay tax. separate taxes and use separate invoices.

    Corporate Income Tax

    – If the branch does independent accounting, the branch shall submit the enterprise income tax declaration dossier arising at the affiliated unit to the branch’s direct tax management agency.

    – For dependent accounting branches, the branch is not required to submit corporate income tax declaration dossiers, the head office shall submit tax declaration dossiers including the income part at the branch.

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