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Formation · Vietnam

Representative
Office
in Vietnam.

A legal presence in Vietnam without incorporating a new entity. Conduct market research, build local relationships, and promote your brand — all under your parent company's name.

Key facts at a glance
Setup timeline
4–6 weeks end-to-end
Licence validity
5 years — renewable
Licensing authority
DOIT (province-level)
Corporate income tax
Exempt — no CIT applies
Charter capital
None required
4–6 wks
Typical establishment timeline
5 years
Licence validity, renewable
No CIT
Exempt from corporate income tax
Fixed fee
Transparent pricing, no hourly billing
What Is a Representative Office

A legal foothold — before you fully commit.

A Representative Office gives your company a legal presence in Vietnam without incorporating a new entity. You operate in your parent company's name — conducting research, building relationships, and promoting your brand.

An RO is a dependent unit with no independent legal status. No share capital, no board, no corporate income tax. It's the fastest, simplest way to test Vietnam before committing to full incorporation.

RO vs. LLC: An RO cannot trade, issue invoices, or generate revenue. It's for presence and promotion only. If your goal is to sell in Vietnam, you need a company or Branch. Not sure which fits? Forra will advise before you apply.

Why companies choose the RO route
Fastest route to a legal presence
4–6 weeks from start to licence — significantly faster than company incorporation.
No capital requirement
No charter capital, no investor registration, no equity structure to set up.
Exempt from corporate income tax
ROs don't generate taxable profit, so CIT does not apply. Minimal ongoing tax obligations.
Hire staff immediately
Both Vietnamese and foreign employees permitted — foreign staff require work permits.
Multiple ROs nationwide
One RO per province — no nationwide cap on total number of ROs.
Scope of permitted activities
Market research & feasibility studies
Research local market conditions and assess commercial opportunities for the parent.
Liaison & business promotion
Act as liaison between the parent and Vietnamese partners, attend and host business meetings.
Hire staff, lease premises, open bank account
Maintain a fully operational office — including foreign employees with work permits.
Cannot trade, invoice, or generate revenue
No commercial contracts in the RO's own name. No import/export or third-party services.
Hard restriction
Cannot monitor parent-company contracts
Since 2016, ROs may not support or oversee commercial contract performance on the parent's behalf.
Hard restriction
Permitted Activities

What an RO can — and cannot — do.

An RO's scope is intentionally limited. It's a presence structure, not a trading one. Stay within these boundaries and the RO runs smoothly. Step outside them and you risk fines or licence revocation.

The Chief Representative can sign as an authorised agent of the parent — provided the parent has issued a written power of attorney. The contract binds the parent, not the RO.

Stay within your scope. Conducting commercial activities through an RO is a compliance violation. It can result in fines and licence revocation. Forra advises on boundaries during set-up and ongoing.

Eligibility Requirements

Four things to check before you apply.

Most established foreign companies qualify easily. Forra confirms eligibility before any documents are prepared — free of charge.

01 — Country eligibility

Registered in a treaty-partner country

Your company must be incorporated in a country with an international trade treaty with Vietnam. All WTO member states qualify — covering the vast majority of foreign companies.

02 — Minimum operating period

At least one year in operation

The parent company must have been actively operating for at least 12 months. A company incorporated less than one year ago is not yet eligible to apply.

03 — Licence validity

Business licence valid for 1+ more years

If your company's registration has an expiry date, at least one year of validity must remain at the time of the RO application.

04 — Sector clearance

Activities within Vietnam's trade commitments

Most sectors qualify automatically. Regulated sectors — banking, legal services, healthcare, certain IT activities — require additional ministerial approval, which extends the timeline. Forra identifies this upfront.

One RO per province: You can set up ROs in multiple provinces across Vietnam, but only one per province. There is no nationwide cap on the total number of ROs.

Application Process

Three stages to get your RO open.

Forra manages the whole process end-to-end. You gather the documents — we handle preparation, submission, authority liaison, and all post-licence set-up.

The most common delay is legalisation of home-country documents, which depends on the certifying authority in your country. Forra advises on lead times as soon as we know your jurisdiction.

1
Document Preparation
Up to 3 weeks

Usually the longest stage. Corporate documents need Vietnamese translation and official legalisation. Forra sends a clear checklist tailored to your country.

  • Application form — signed by an authorised representative
  • Certificate of Incorporation — translated and legalised
  • Latest audited financial statements — legalised
  • Appointment letter for the Chief Representative
  • Chief Representative passport — certified copy with translation
  • Office lease agreement or letter of intent
2
Licence Application
7 working days

Forra submits to the DOIT in your chosen province. Standard sectors receive the licence within 7 working days of a complete submission. Regulated sectors may need ministerial review — we flag this before documents are prepared.

Regulated sectors (banking, legal, healthcare) may take up to 3 months. Forra identifies your sector's category at the very start.

3
Post-Licensing Set-Up
Up to 2 weeks

Forra handles all post-licence steps before the RO can legally operate.

  • Company seal registration
  • Tax code registration — required within 10 days of licence issuance
  • Bank account opening
  • Labour and social insurance registration (when staff are hired)
  • Office signage and notice of commencement

Fixed-fee service. Forra quotes a single inclusive fee for the full RO establishment — document preparation, filing fees, authority liaison, and post-licence set-up. No hourly billing.

RO vs. Company Registration

Is an RO the right structure for you?

If you're generating revenue or signing commercial contracts, you need a company or Branch. If you're testing the market first, an RO is almost always the right starting point.

Factor Representative Office LLC / Company Registration
Legal statusDependent unit of parent — no independent legal statusSeparate legal entity registered in Vietnam
Commercial activity  Cannot trade, invoice, or generate revenue  Full commercial operations permitted
Setup timeline  4–6 weeks6–8 weeks (IRC + ERC process)
Charter capital  None requiredRequired — contributed within 90 days of ERC
Corporate income tax  Exempt — ROs do not generate taxable profitCIT at 20% on taxable profits
VAT obligations  Generally not subject to VATVAT registration and monthly declarations required
Hiring staff  Permitted — Vietnamese and foreign (with work permits)  Permitted
Licence validity5 years — renewable before expiryIndefinite (subject to ongoing compliance)
Best forMarket research, liaison, brand promotion, pre-commercial phaseRevenue generation, full commercial operations, long-term presence

Many companies start with an RO and incorporate once the market is validated. Forra supports both paths. Learn about company registration →

Ongoing Obligations

Staying compliant after opening.

An RO has a small but firm set of recurring obligations. Miss them and you risk fines or licence revocation. Forra manages all of these as part of the ongoing compliance service.

Annual Activity Report

Summary of the RO's activities submitted to DOIT. Two consecutive missed reports can trigger licence revocation.

30 January each year

Licence Renewal

The RO licence is valid for 5 years. Application must be filed at least 30 days before the expiry date. Forra tracks this proactively.

30 days before expiry

Licence Amendments

Any change to the RO's name, address, or Chief Representative must be formally filed with DOIT before the change takes effect.

Before any change is made

PIT & Social Insurance

If the RO has staff, monthly PIT withholding and social/health insurance contributions are required. No corporate income tax applies.

Monthly obligation

Chief Representative Authorisation

When the CR leaves Vietnam, written delegation to another person — parent-company approved — is required before departure.

Before each departure

Registered Physical Address

The RO must maintain a real, operational office address at all times. Any change of address requires a licence amendment filing with DOIT.

Ongoing requirement
Before You Apply

Eligibility checklist.

Run through this before commissioning Forra. If everything below is true, you're almost certainly eligible. We confirm for certain — free of charge — before any work begins.

Parent company incorporated for at least 1 year
Home country is party to an international treaty with Vietnam
Business licence valid for 1+ more years
Audited financial statements for latest fiscal year available
Chief Representative identified and appointed
Province / municipality for the RO decided
Office premises located or lease MOU in place
Sector check complete — no ministerial clearance required
Common Questions

Questions we hear about ROs.

Why set up an RO rather than a full company?

An RO is the right choice when you want a presence in Vietnam without committing to full commercial operations. It's faster (4–6 weeks), requires no charter capital, and carries no corporate income tax. It's ideal for market research, testing relationships, or maintaining a liaison contact.

The trade-off: the RO cannot trade or issue invoices. Once you're ready to generate revenue, you'll need a company or Branch.

Can the RO sign contracts on behalf of the parent company?

The RO cannot sign contracts in its own name. However, the Chief Representative can sign as an authorised agent of the parent — provided the parent has issued a written power of attorney. The contract binds the parent company, not the RO.

Since 2016, the RO can no longer monitor or support commercial contracts on the parent's behalf. Any authority granted must be specific and express.

What qualifications must the Chief Representative have?

There are no formal qualification requirements. The parent appoints whoever they choose. The main restriction: the Chief Representative cannot simultaneously hold a leadership role at another foreign company's branch or RO in Vietnam, or act as legal representative of a Vietnamese-registered business.

The Chief Representative can be Vietnamese or foreign. If foreign, they need a work permit before taking up the role.

Is the RO subject to tax in Vietnam?

No corporate income tax, and generally no VAT — because the RO doesn't generate revenue. If the RO has employees, it must withhold personal income tax and contribute to social and health insurance for Vietnamese staff. An RO with no employees has no ongoing tax filing obligations.

Can an RO hire foreign employees?

Yes. The RO can hire both Vietnamese and foreign nationals. Foreign employees need a valid work permit before starting. The RO applies on their behalf. Forra's Global Mobility team handles work permits as part of the broader service.

What happens if the parent company's registration expires?

The RO licence is tied to the parent company's legal existence. If the parent's registration expires or is revoked, the RO licence becomes invalid. Keep your home-country registration current — Forra tracks both timelines.

Can the RO be converted into a company later?

Not directly — there's no conversion process. You register a new company separately. The RO and the company can run concurrently during the transition, then you close the RO when ready. Forra handles both — the new company registration and the RO closure. Learn about company registration →

Which sectors need extra approval before licensing?

Most trade and manufacturing sectors are straightforward — DOIT issues the licence within 7 working days. Regulated sectors — banking, insurance, legal services, healthcare, education, and certain IT activities — require ministerial review, which can extend the timeline to up to 3 months. Forra identifies this at the very start.

Get your RO open in 4–6 weeks.

Book a free call. We'll confirm eligibility, explain exactly what documents you need, and give you a fixed-fee quote — no commitment required.

More from Forra

After your RO is open, we keep it compliant.