A Resident Representative Office (RRO) is a popular and cost-effective market entry option for foreign investors looking to explore the Vietnamese market before committing to larger investments. An RRO serves as an extension of its parent company, allowing businesses to conduct market research, act as a liaison, and promote their activities without directly engaging in profit-generating activities.
Key Features of a Resident Representative Office:
- Dependence on Parent Company: An RRO is not a separate legal entity and is fully dependent on its parent company.
- Restricted Activities: It cannot generate profits, enter directly into contracts, or issue invoices.
- Permissible Activities:
- Conducting market research.
- Acting as a liaison office for the parent company.
- Promoting the parent company’s activities through meetings and other events to support business development.
Considerations for Appointing a Chief Representative:
Before appointing a Chief Representative in Vietnam, consider the following:
- Unique Position Requirement: The Chief Representative cannot hold the position of Chief for another branch in Vietnam.
- No Overlapping Legal Representative Roles:
- The Chief cannot serve as a legal representative for another foreign business in Vietnam unless authorized formally by power of attorney.
- The Chief cannot be the legal representative of another enterprise in Vietnam under any circumstances.
License Validity and Setup Timeframe:
- License Duration: The RRO’s license is valid for five years and can be extended for another five years.
- Setup Timeframe: Establishing an RRO typically takes between six to eight weeks. Due to the complexity of the process, hiring a professional service is recommended.
KMC’s Services for Setting Up an RRO in Vietnam:
KMC offers comprehensive services to help foreign investors establish an RRO in Vietnam, including:
- Application for RRO’s License: We handle the licensing process through the Department of Industry and Trade.
- Application for RRO’s Seal Specimen: We manage the process at the Police Department.
- Registration of RRO’s Tax Code: We assist with tax code registration at the Taxation Department.
- Initial Personal Income Tax (PIT) Registration: We support the registration for the Chief Representative at the Taxation Department.
- Support in Opening a Bank Account: Guidance and support for setting up the RRO’s bank account.
Accounting 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.
Tax 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.
Human Resources (HR) and Payroll Advisory
KMC’s service will help businesses fully comply with Vietnam’s regulations, optimize costs, and prevent risks in advance.
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.
Other Services
Besides Accounting, Taxation, Business Services, etc. KMC also has efforts to provide other services to Clients related to business activities of the enterprises in Vietnam.
