What is a Liaison Office?

A liaison office is a dependent unit of a business that operates under the company’s authorization. It is established to represent and protect the company’s interests in accordance with the regulations outlined in Article 45 of the Enterprise Law.

Key Characteristics:

  • Legal Status: A liaison office does not have independent legal status.
  • Tax Code: It has a 13-digit tax code.
  • Seal: It is not required to have a company seal.
  • Certificate of Operation: It operates with a certificate of operation registration (also known as a liaison office business license).

Main Functions of a Liaison Office

A liaison office serves several key functions, but it does not engage in direct business activities or generate revenue. Its main roles include:

  • Market Research: Conducting research and gathering information about new markets.
  • Information Provision: Assisting the parent company by providing necessary information and updates.
  • Market Access: Helping the company access new markets and establish connections with potential partners.
  • Promotional Activities: Conducting promotional and negotiation activities on behalf of the parent company.

Liaison offices are particularly useful for businesses looking to explore new regions, enhance their brand presence, or facilitate operations in provinces other than their headquarters.

When Does a Business Need to Open a Liaison Office?

A business might consider opening a liaison office for various reasons:

  • Market Expansion: To reach new customers or increase sales in different provinces or cities.
  • Serving Existing Customers: To provide closer service and support to important customers or partners in other regions.
  • Enhancing Brand Presence: To build local trust and increase brand visibility.
  • Facilitating Business Operations: To handle transactions, cooperation, and business-related tasks in new regions.
  • Legal Compliance: To meet sector-specific regulations or contractual requirements that necessitate a regional presence.
  • Supporting Expansion Activities: For conducting market research, competitor analysis, and other activities related to business growth.
  • Investment and Project Development: To manage and coordinate investment or project-related activities in different provinces.
  • Strengthening Partnerships: To develop partnerships or collaborations with local organizations and companies.

Liaison Office Establishment Service at KMC

KMC offers comprehensive services for establishing a liaison office. Our process includes:

  1. Document Preparation:

    • Prepare the application for establishing a liaison office.
    • Gather necessary documents including the company’s business registration certificate and the decision to establish the liaison office.

  2. Submit Documents to Registration Authority:

    • Submit the application to the business registration department of the local Department of Planning and Investment where the liaison office will be located.

  3. Await Approval and Certificate Issuance:

    • Monitor the approval process and obtain the certificate of operation registration.

  4. Complete Post-Certificate Procedures:

    • Perform any additional procedures needed for the liaison office to officially operate, including notifying relevant authorities.

Completion Time: 3 to 6 working days.

After Receiving the Liaison Office Operation Certificate

To ensure legal operation of the liaison office, businesses must complete the following:

  • Display the Office Sign:

    • The sign must include the office name, tax code, address, and the name of the managing authority.

  • Submit Declaration and Business License Tax:

    • Liaison offices are exempt from business license tax during the exemption period. After this period, the tax is 1,000,000 VND/year.
    • Note: If the liaison office does not engage in manufacturing, trading goods, or providing services, the business license tax does not apply.

For detailed advice and assistance with establishing a liaison office, contact KMC for dedicated support and comprehensive services.

Note: If the liaison office does not engage in manufacturing, trading goods, or providing services, there is no need to pay the business license tax.

Other Services

Accounting and Finance Advisory

KMC provide professional initial accounting and tax registration services, you shall not bother about issues related to tax and accounting after post license. Our team with high expertise and many years experiences will support and accompany you.

Taxation Advisory

Our tax services rely on our local knowledge to ensure tax compliance, tax administration and dealing with tax authorities. We assist you by taking into account the latest regulations thus ensuring full tax compliance and optimization.

Business Advisory

KMC believes in an approach to our client, as we familiarize ourselves with all aspects of your business and the environment in which you operate, it enables us to propose you the most appropriate plan at a competitive service fee.

Mergers and Acquisitions (M&A) Advisory

Our global network in combination with our deep industry knowledge means that we can help companies identify other businesses that offer a good strategic fit and assist them with acquisitions, mergers and alliances that allow them to maintain and build their competitive advantage.

Transfer Pricing Advisory

Transfer pricing refers to the rules and methods for pricing transactions between related entities, typically within multinational companies. Currently, regulations on compliance of transfer pricing are very complexly and strictly.

Annual Consulting Services

KMC has the expertise with experienced resources, including lawyers, auditors, accountants who have many years of experiences working in the investment, accounting, taxation and labour consulting fields.