{"id":8227,"date":"2023-10-30T10:45:27","date_gmt":"2023-10-30T03:45:27","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=8227"},"modified":"2024-01-12T14:47:05","modified_gmt":"2024-01-12T07:47:05","slug":"termination-of-the-operation-of-foreign-traders-representative-offices","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/termination-of-the-operation-of-foreign-traders-representative-offices\/","title":{"rendered":"Termination of the operation of foreign traders\u2019 representative offices"},"content":{"rendered":"<p>For many years, foreign trader\u2019s representative offices have played an important role in connecting, expanding markets and creating favorable conditions for business activities between countries. With rapid changes of the world, technology trends and legal regulations, the demand and the role of foreign trader\u2019s representative offices have been strongly challenged.<\/p>\n<p>The article below will share with you things to keep in mind when terminating the operation of foreign trader\u2019s representative offices in Vietnam.<\/p>\n<figure id=\"attachment_8074\" aria-describedby=\"caption-attachment-8074\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8074\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-carlos-pernalete-tua-730647-1204x800.jpg\" alt=\"\" width=\"800\" height=\"531\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-carlos-pernalete-tua-730647-1204x800.jpg 1204w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-carlos-pernalete-tua-730647-602x400.jpg 602w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-carlos-pernalete-tua-730647-768x510.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-carlos-pernalete-tua-730647-1536x1020.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-carlos-pernalete-tua-730647-2048x1360.jpg 2048w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-8074\" class=\"wp-caption-text\">Source: pexels-carlos-pernalete-tua<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/termination-of-the-operation-of-foreign-traders-representative-offices\/#1_When_does_a_representative_office_terminate_operation\" >1. When does a representative office terminate operation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/termination-of-the-operation-of-foreign-traders-representative-offices\/#2_Procedures_for_terminating_operation_of_foreign_traders_representative_offices\" >2. Procedures for terminating operation of foreign traders\u2019 representative offices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/termination-of-the-operation-of-foreign-traders-representative-offices\/#3_What_should_foreign_traders_pay_attention_to\" >3. What should foreign traders pay attention to?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/termination-of-the-operation-of-foreign-traders-representative-offices\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_When_does_a_representative_office_terminate_operation\"><\/span>1. When does a representative office terminate operation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Different from other business models in Vietnam, representative offices of foreign traders are governed by commercial law and by management agencies which are the Department of Industry and Trade and the Department of Taxation. Therefore, the cases leading to the termination of representative office\u2019s operation are also different from other operation forms. Accordingly, representative offices of foreign traders will terminate the operation in the following cases:<\/p>\n<ul>\n<li>At the request of foreign traders.<\/li>\n<li>When a foreign trader terminates its operation in accordance with the law of the country or territory where that trader was established or registered its business.<\/li>\n<li>The operational period under the License for Establishment of Representative Office expires and the foreign trader does not request an extension.<\/li>\n<li>The operational period under the License for Establishment of Representative Office expires without the Licensing Agency\u2019s approval to extend.<\/li>\n<li>License for Establishment of Representative Office is revoked. Accordingly, this license shall be revoked if (i) Not operating for 01 year and not having any transactions with the Licensing Agency, (ii) Not reporting on the activities of the Representative Office or Branch for 02 consecutive years, (iii) Failure to submit reports to the Licensing Agency within 06 months from the deadline for sending the report or making a written request.<\/li>\n<li>Foreign traders and representative offices no longer meet one of the conditions prescribed by law, which are understood as conditions for competent authorities to allow foreign traders to establish representative offices in Vietnam.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"2_Procedures_for_terminating_operation_of_foreign_traders_representative_offices\"><\/span>2. Procedures for terminating operation of foreign traders\u2019 representative offices<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To terminate operation of a representative office, traders should pay attention to prepare documents including:<\/p>\n<ul>\n<li>Notification of termination of representative office\u2019s operation signed and sealed by the authorized representative of the foreign trader in accordance with regulations;<\/li>\n<li>Copy of the Licensing Agency&#8217;s refusal of extension of the License for Establishment of Representative Office or the copy of Decision to revoke the License for Establishment of Representative Office;<\/li>\n<li>The representative office\u2019s report submitted to the Department of Industry and Trade from the time of establishment until now;<\/li>\n<li>Seal sample certificate;<\/li>\n<li>List of creditors and unpaid debts, including tax debt and social insurance debt;<\/li>\n<li>List of employees and their current respective benefits;<\/li>\n<li>The original License for Establishment of Representative Office;<\/li>\n<li>Notification of the Department of Taxation on the tax code and issues related to the tax obligations of the Head of the representative office, of the employees working at the representative office, and other documents depending on each specific case.<\/li>\n<\/ul>\n<p>Dossier for terminating operation shall be submitted to the Department of Industry and Trade. Within 03 working days from the date of receipt of the dossier, the Licensing Agency shall check and request additional documents if the dossier is not complete and valid. Requesting additional documents can be made at most once during the dossier processing. Within 05 working days from the date of receipt of all valid dossiers, the Licensing Agency is responsible for announcing on its website the termination of the representative office\u2019s operation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_What_should_foreign_traders_pay_attention_to\"><\/span><strong>3. <\/strong>What should foreign traders pay attention to?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In fact, the dossier for termination of foreign trader\u2019s representative office is complicated at the step of receiving notice of the representative office\u2019s completion of tax obligations. Accordingly, in case the worker is a Vietnamese individual, confirming tax information is much simpler than that of foreign workers.<\/p>\n<p>In this case, considering the tax obligations of foreign workers (the Head of representative office or the employee) is the most complicated thing. Because the tax authority shall consider the individual&#8217;s status as resident or non-resident to determine tax. In addition, making tax declarations at both the Vietnamese tax authority and the tax authority at the place where income is paid at the same time forces the tax authority to consider the global income tax finalization factor and compare with agreements between two countries under the Double Taxation Avoidance Agreement. This process takes a lot of time of foreign traders as well as the representative office.<\/p>\n<p>The competent authority shall review the compliance of the representative office during its operation in Vietnam. Accordingly, before making a decision to terminate the operation of foreign trader\u2019s representative office, the management agency shall review the activities that the representative office has carried out in Vietnam, including obligations of periodic reports. In case of violation, the violation handling shall be completed before carrying out the next work. Note that the current administrative fine for representative offices is quite high.<\/p>\n<p>For the above reasons, we always propose that foreign traders pay attention to the legal compliance of representative offices in Vietnam. In case of necessity, traders can build specific management processes right from the beginning of establishment to ensure that the control of representative office in Vietnam is always maintained.<\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 24\/<em>07\/2023<\/em><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/key-terms-in-the-franchise-agreement-part-1\/\" target=\"_blank\" rel=\"noopener\">Key terms in the Franchise Agreement (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/key-terms-in-the-franchise-agreement-part-2\/\" target=\"_blank\" rel=\"noopener\">Key terms in the Franchise Agreement (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/guidelines-for-holding-the-general-meeting-of-shareholders-in-accordance-with-the-law-part1\/\" target=\"_blank\" rel=\"noopener\">Guidelines for holding the General Meeting of Shareholders in accordance with the law (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/8-important-new-points-regarding-work-permit-which-take-effect-from-september-18-2023\/\">8 important new points regarding Work Permit which take effect from September 18, 2023<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/labor-contract-or-personal-consulting-service-contract\/\">Labor contract or personal consulting service contract<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/8227#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>For many years, foreign trader\u2019s representative offices have played an important role in connecting, expanding markets and creating favorable conditions for business activities between countries. With rapid changes of the world, technology trends and legal regulations, the demand and the role of foreign trader\u2019s representative offices have been strongly challenged. The article below will share&#8230;<\/p>\n","protected":false},"author":4,"featured_media":8074,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[263,264,262],"class_list":["post-8227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-operation","tag-representative-offices","tag-termination"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/8227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=8227"}],"version-history":[{"count":0,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/8227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/8074"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=8227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=8227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=8227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}