REPORT ON OPERATION OF FOREIGN REPRESENTATIVE OFFICE, HOW TO PERFORM

The foreign representative office (foreign representative office of foreign trader in Vietnam) must comply with the regulations of the law, including reporting requirements as stipulated by the competent authorities. Report on operation of foreign representative office is a condition to ensure transparency and legal compliance, as well as to provide a basis for the competent authorities to inspect, supervise, and manage.

What functions does foreign representative office perform?

The FRO in Vietnam is a dependent unit of the foreign trader aimed at performing the functions and tasks of a liaison office, market research, and promotion to enhance investment and business opportunities for the trader it represents. This does not include service sectors for which the establishment of the FRO is regulated in specialized legal documents.

How is the regime of report on operation of foreign representative office?

The FRO has the obligation to report its activities regularly and ad hoc according to the laws of Vietnam.

The regime of report on operation of foreign representative office in Vietnam is as follows:

– Before January 30th each year, the FRO is responsible for sending a report on its activities in the previous year to the licensing authority via postal service using the template provided by the Ministry of Industry and Trade.

– The FRO has the obligation to report, provide documents, or explain issues related to its activities upon request by the competent state management authority.

>> WHAT SHOULD BE NOTED ON FOREIGN REPRESENTATIVE OFFICE OPERATION? https://linconlaw.vn/what-should-be-noted-on-foreign-representative-office-operation/

>> NOTES ON CAPITAL RAISING FORMS OF REAL ESTATE ENTERPRISE https://linconlaw.vn/notes-on-capital-raising-forms-of-real-estate-enterprise/

Violations for report on operation of foreign representative office can lead to administrative fines

The foreign representative office may be subject to administrative fines for the following violations of the reporting regime:

– Failure to submit regular reports or submitting dishonest reports regarding the activities of the foreign representative office to the competent state management authority that issued the license, as prescribed;

– Failure to report, provide documents, or explain issues related to the activities of the foreign representative office upon request by the competent state management authority, as required.

The fine for violations of the reporting regime of the foreign representative office ranges from VND 10,000,000 to VND 20,000,000, depending on the severity and nature of the violation.