Vietnam is consistently ranked as one of the top destinations for doing business in Southeast Asia. The World Bank reported that Vietnam sat on the 70th place for ease of doing business, competing among 190 other countries in the world. The report also stated that the foreign direct investment increased by 7.4% year-on-year as of the end of 2019. Expanding to Vietnam by establishing your branch via a Virtual Office is a great first step to get a feel for the market.
There are four major structure options that foreign companies can choose and establish their business in Vietnam: a branch office, a representative office, a limited liability company, and a joint-stock company.
- Branch office: an extension of a foreign parent company that is permitted to conduct commercial activities with profit generation. An owner of a branch does not have to establish a separate legal entity from its parent company.
- Representative office: a common solution for foreign investors to do market research in Vietnam before expanding its business to Vietnam. Profit generation is now allowed.
- Limited liability company: the most popular legal entity type in Vietnam for small-medium enterprises. Only one founder is required.
- Joint-stock company: suitable for medium-sized and large companies. It requires at least three founders.
This article will focus on the branch office in Vietnam and provides an overview of how you can set up one with a virtual office; as well as the benefits of a virtual office.
Why Set Up a Branch Office in Vietnam
A branch office in Vietnam has a lot of perks for foreign entrepreneurs and companies:
- Foreign investors can generate income with this type of entity with full business activities, including manufacturing, trading, and inventory
- Independent issuance of VAT invoices
- The owner can choose to separate the accounting and financial records from the parent company or to consolidate them
- Amendment of and entry into agreements are permitted
How a Virtual Office can be Used when Registering a Branch Office
Setting a branch office in Vietnam can be made easy through a virtual office. That’s why a virtual office has been welcomed by many foreigners as their option to establish a branch office in the country.
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It not only allows employees and employers to work from anytime and anywhere in the world with just laptops, mobile phones, and the internet, it is also equipped with complete services and facilities. This is almost like working in a full office but providing you with more flexibility and cost-efficiency.
In other words, a branch office in the form of a virtual office helps you to save costs of renting an office, buying office equipment and supplies, and upkeeping the office. Furthermore, you don’t have to fork out money on the salary of a full-time administration employee.
Other Benefits of Using Virtual Offices
- A virtual office for a branch office in Vietnam also offers the following benefits:
- Flexible leases
- Premium business address
- Mail and call forwarding services
- Receptionist services
- On-demand meeting room or conference room
- Free business supports
- Convenient parking
Cekindo’s Virtual Office Services in Vietnam
Cekindo offers virtual office services for entrepreneurs who do not yet have a significant presence in Vietnam; or to companies that want to set up a branch office in Vietnam but do not want the high expense and hassle of maintaining a full physical office.
A virtual office for your branch office in Vietnam grants you the opportunity to have a legal and professional business presence with a prominent business address and dedicated phone number. If you’d like, you can opt-in to our administration services and our highly-trained receptionist will help you answer your calls and receive your mails.
Establishing your branch office in Vietnam with Cekindo’s virtual office also keeps you updated with a variety of business services that can beget greater success for your establishment.
Contact us today by filling in the form below to know more about our virtual office solution for branch office registration in Vietnam.