Establishing a company branch is a strategic move for businesses looking to expand their market reach and scale their operations. A branch acts as a dependent unit of the main company, responsible for performing all or part of the company’s functions. Despite its ability to conduct business activities, a branch does not possess independent legal status and operates under the main company’s legal framework. Importantly, a branch can issue red invoices (VAT invoices) and must comply with VAT declaration requirements, just like the parent company.

Conditions for Establishing a Company Branch

To set up a branch, the following conditions must be met:

  1. Business Registration Certificate: The parent company must hold a valid business registration certificate.
  2. Branch Name: The name of the branch must include Vietnamese letters, numbers, and symbols, and should follow the format “Company Name – Branch.”
  3. Branch Location: The branch address must be distinct from an apartment building or collective house.
  4. Business Activities: The branch can only engage in business activities that are already registered by the parent company.

Documents for Establishing a Company Branch

The documentation required depends on whether the branch is located in the same province or a different province from the parent company:

1. Documents for Establishing a Branch in a Different Province

  • Notification of Branch Establishment: A formal notification regarding the branch establishment in a different province.
  • Meeting Minutes: Minutes of the meeting where the decision to establish the branch was made (for LLCs with 2 members or joint-stock companies).
  • Decision Copy: A copy of the decision to establish the branch from the company’s owner/member council/board of directors.
  • Branch Head ID: A notarized copy of the ID card or passport of the branch head in the new province.
  • Power of Attorney: If the application is submitted by someone other than the company’s legal representative, a power of attorney is required.

2. Documents for Establishing a Branch in the Same Province

  • Notification of Branch Activity Registration: A formal notification for establishing the branch within the same province.
  • Meeting Minutes: Minutes of the member council/board of directors on the establishment of the branch.
  • Decision Copy: A copy of the decision to establish the branch from the company’s owner/member council/board of directors.
  • Branch Head ID: A copy of the legal documents (ID card or passport) of the branch head in the same province.
  • Power of Attorney: Required if the application is submitted by someone other than the company’s legal representative.

The process of establishing a branch, whether in the same or different provinces, involves several steps and detailed documentation. To streamline the process and ensure compliance, consider utilizing KMC’s comprehensive branch establishment services: