Every company that is legally registered in Vietnam is required to have at least one Legal Representative. As the name implies, the Legal Representative will represent the company and plays a crucial role in the business operations in Vietnam.
Only the Legal Representative can bind the company, act on behalf of the company in legal matters as well as performing the other rights and obligations of the company, in accordance with Vietnamese law.
The Legal Representative must be involved in business activities such as application of business licenses, registered capital adjustments, and corporate bank account opening.
Requirements to Be Eligible as a Legal Representative
The Legal Representative can be anyone, regardless of nationality, working in the company in a managerial position or higher, and lives in Vietnam full time or cannot leave the country for 30 consecutive days or more.
If he/she is going to be out of Vietnam for more than 30 days, then he/she can give Power of Attorney (POA) to another qualified Legal Representative.
To sum up, the Legal Representative can be an investor or someone working in the company with the following qualifications:
- In a management role or higher.
- Residing in Vietnam full time (cannot leave Vietnam for 30 consecutive days).
- Nationality does not matter (can be a foreigner or a local national).
It is also worth taking note that it is possible to have more than one Legal Representative in a company in Vietnam.
Have the Legal Representative in Vietnam Through a Nominee Director
For foreign investors who are not able to reside in Vietnam permanently to be the legal representatives of the company, engaging a nominee director provider is the ideal solution.
A Nominee Director is a dedicated and chosen representative of the company, speaking on behalf of the company at any time. This person can be anyone and any nationality, but is required to reside in Vietnam full time. A Nominee Director, therefore, can act as the Legal Representative of the company.
A Nominee Director is not the same as a Nominee Shareholder. Unlike a Nominee Director that represents the company at any required time, a Nominee Shareholder is a dedicated and inactive owner and shareholder of the company. Most of the time, this person is not the true investor of the company.
How Cekindo Can Help You
The importance of choosing the right individual to act as a representative of your company in Vietnam should not be overlooked. The sustainability of your business depends on a lot of factors, including the legal representative.
As a legally registered and leading consulting company in Vietnam, Cekindo’s team of experienced consultants and legal specialists is happy to assist you in fulfilling your need of a legal representative. We will draft a reliable nominee agreement that will be signed by both parties.
Protect yourself and your business from the potential risks of engaging an unreliable legal representative and having an invalid nominee agreement in Vietnam.
Discuss your business plan and needs with us today. Start by filling in the form below.