A Resident Representative Office (“RRO”) is one of the most popular and common market entry options for foreign investors. The RRO offers a low-cost entry option for businesses that want to get a feel of the market before making a commitment to a bigger investment.
RROs are dependent on their parent company and are not allowed to generate their own profits or enter directly into contracts. They are also not allowed to issue invoices.
RROs are permitted to engage in the following activities:
- Conducting market research
- Acting as a liaison office for the parent company
- Promoting the activities of the head office through meetings, and other activities, that lead to business at later stages
Things to Consider Before Appointing a Chief Representative
- Cannot be a Chief of another branch
- Cannot hold the position of legal representative of another foreign business who can sign and approve contracts in the absence of formal power from an attorney. This means that the Chief for RRO cannot be someone who has the position of a legal representative with the same power as an attorney for a foreign business.
The RRO’s License is valid for five years but can be extended for another five years.
Timeframe:
RROs can be set up in between six to eight weeks. Hiring a professional service is recommended to deal with the myriad of laws and procedures.
KMC’s Services Include:
- Application for RRO’s License issued by the Department of Industry and Trade
- Application for RRO’s seal specimen at the Police Department
- Registration of RRO’s Tax code at the Taxation Department
- Initial Personal Income Tax (PIT) registration for Chief Representative at the Taxation Department
- Support in opening a bank account for the RRO
Post-Licensing Services Provided by KMC:
- Work Permit and Temporary Residence Card Application for the Chief of RRO (if they are a foreigner)
- Follow bank balance and cash book, then prepare an Expense Report
- Advise on labor contracts and prepare monthly Payroll Slips for employees
- Registration and payment guidance for Social Insurance, Health Insurance, Unemployment Insurance, and Union Fee
- Prepare and submit the Report on labor use situation every six months
- Prepare monthly or quarterly Personal Income Tax (“PIT”) Declaration under the tax code of the RRO and the individual tax code of foreigners
- Prepare annual PIT Finalization Declaration under the tax code of Party B and the individual tax code of foreigners
- Support in preparing the Annual Activities Report of the previous year to the Department of Industry and Trade before January 30 of each year. If the RRO fails to submit the annual report on time, it risks fines of up to VND 40 million and may face difficulties when amending or renewing its license
- Registration for any change or adjustment of the RRO, such as the name, location of the head office of the parent company, the Chief of RRO, or location of the RRO (within 60 working days from the date of the change or adjustment)
Annual Activities Report
Yearly, RRO must prepare the Annual Activities Report of the previous year to the Department of Industry and Trade before
License extension
For a business looking to extend its license for foreign merchants in Vietnam, it’s essential to include a detailed description
Change information of Foreign Trader
During business activities, if foreign traders have any change operation, they must register their business with the local authorities where
Change Chief RRO
In Vietnam, the process for changing the Chief Representative of a foreign trader involves several steps. We provide consulting services
Change RRO’ s operation address
In the dynamic landscape of international trade, foreign traders operating in Vietnam may encounter the need to change their Registered Representative
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.
