Business Setup

Branch office in Vietnam for foreign companies

Branch office registration, sector-specific requirements, and ongoing compliance for foreign-parent branches in Vietnam.

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Overview

A branch office is an extension of a foreign company in Vietnam, not a separate legal entity. The parent is directly liable for the branch's obligations. The branch is established by registration with the Department of Planning and Investment. Branches are restricted to certain sectors and activities.

Who needs this service

  • Foreign companies in permitted sectors (banking, insurance, certain professional services)
  • Foreign companies that need a presence without incorporating a subsidiary

Legal requirements

Branch registration

Issued by the DPI or the relevant ministry. Authorises the branch to operate in Vietnam.

Sector restrictions

Branches are not available in all sectors. Some sectors require a subsidiary structure.

Parent liability

The parent is directly liable for the branch's obligations in Vietnam.

Pricing

Indicative fees

ItemFee
Branch registrationfrom USD 5,000
Branch tax registration and ongoing compliancefrom USD 600 / month

Fees are indicative and depend on transaction volume, complexity, and reporting requirements. Request a tailored proposal.

Timeline

Typical engagement timeline

Phase 1 · Week 1–6

Application

Document preparation, parent-company documents, submission.

Phase 2 · Week 7–14

Review

Authority review, queries, and issuance.

Watch out

Common mistakes we help you avoid

  • 01Choosing a branch when a subsidiary is required for the sector
  • 02Underestimating the parent's direct liability
  • 03Failing to register for CIT as a permanent establishment
Why us

What you get

Sector expertise

We advise on whether a branch is available for your sector and the implications for liability.

Full setup

From registration to ongoing compliance, we handle the full lifecycle.

FAQ

Frequently asked questions

Can a foreign company open a branch in Vietnam?
Yes, in permitted sectors. Branches are extensions of the foreign parent, not separate legal entities, and the parent is directly liable. The branch is established by registering with the Department of Planning and Investment under the foreign-branch rules.
What is the difference between a branch and a subsidiary?
A branch is an extension of the parent. A subsidiary is a separate Vietnamese legal entity with limited liability. Branches are restricted in the activities they can undertake and are not available in all sectors.
How is a branch office taxed?
A branch is taxed as a foreign entity on Vietnam-source income at 20% CIT. It is required to withhold FCT on payments to foreign suppliers, register for SI/PIT, and file a CIT return as a permanent establishment.
What are the restrictions on a branch office?
Branches cannot undertake activities reserved for Vietnamese-licensed entities (e.g. certain financial services, real-estate brokerage, certain construction activities). They are also restricted in their ability to bid on public procurement and to hold title to land.
Get Started

Ready to discuss branch office?

Free 30-minute consultation. We'll review your situation and outline a fixed-fee engagement.

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