BRANCH ESTABLISHMENT PROCEDURES
Your company wants to develop and expand its business in the near future? However, the procedures and processes are so complicated that you don't know what to prepare and how long does it take?
Let TASCO Tax Agent help you solve questions about the process and procedures to prepare for a complete and most accurate set of documents through the article below.
1. What is a company 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 business sectors need to be in line with the company's business sectors. However, a branch is still a unit of 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 Business Registration Certificate, it is possible to carry out the procedures for establishing a branch. Therefore, it is not possible to carry out the procedures for establishing a branch together with the procedures for establishing a company.
⚡ Conditions for branch name:
- The branch name must be written in letters of the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols. The branch name 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 the initials.
⚡ Conditions for the head office of the branch:
- The head office of the branch is the contact point of the enterprise in the territory of Vietnam, whose address is determined including house number, alley, street, village, hamlet, commune, ward, district, town, provincial city, provinces and centrally city; 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 for branches business sector:
- Branch business sectors must be consistent with the enterprise business sectors.
- Accordingly, the branch of the company can only register the professions 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. Choose type of branch's 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 with the company. License tax for any branch must be paid at 1,000,000 VND/year. Works under authorization and assignment from the company. However, each form has specific differences regarding tax report:
⚡ Establishing an independent accounting branch:
- Tax: proactively determine taxable expenses and taxable income.
- Be responsible for declaring and paying corporate income tax regardless of the business performance 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 Accounting Law.
⚡ Establishing a dependent accounting branch:
- Transferring data, revenue vouchers, expenses to the company for general accounting in financial statements at the end of the year.
- The company combines data of other branches of the same company and the company's operations to account and fulfill corporate income tax obligations.
- The figures in the books are part of the company's books.
- The company's accounting unit includes the branch accounting department.
4. Company branch establishment procedures:
- Notice of branch establishment registration
- Decision on branch establishment
- Minutes of the Members' Council on the branch establishment (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
- Power of attorney for the person to carry out this procedure
- A certified copy of the identity card of the person carrying out the procedures
5. Where to submit the branch establishment application of the company?
When there are enough documents, the application owner 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 located. Within 5 days from the date of application, the specialist will process 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 state the reason; amendments and supplements (if any).
The business registration authority issues the branch operation registration certificate if the application is valid
👉 Leave your worries to TASCO to deal with. With branch establishment, representative office, business location service of TASCO, after only 3 working days, your company will receive a branch operation registration certificate and a round seal of the company branch.
The process of performing the service of registering branches, representative offices, and business locations at TASCO
1️⃣ Compose documents and send to customers to sign and seal
2️⃣ Submit the application directly at the Business Registration Office or through the Website of the National Business Registration Portal
3️⃣ Follow the application process, receive the branch operation registration certificate at the Business Registration Office after 3 working days
4️⃣ Engrave a circle seal for the company's branch
5️⃣ Disclosure information about a company branch establishment
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Hotline: 086.486.2446 - 0975.08.68 (zalo)
Website: dailythuetasco.com hoặc dichvutuvandoanhnghiep.vn
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