When opening a company in Vietnam, one of the important factors that foreign businessmen and business owners need to understand is registering the company’s headquarters address. The following is a correct understanding of the company’s headquarters address and solutions for the company’s headquarters address in Vietnam.
Currently, Article 42 of the 2020 Law on Enterprises stipulates: “The head office of an enterprise is located in the territory of Vietnam, is the contact address of the enterprise and is determined according to the administrative unit’s boundaries; has a telephone number, fax number and email (if any)”.
Current regulations on business headquarters have created favorable conditions for businesses to participate in the market, responding well to the actual needs of businesses in the internet age. For example: When starting up, businesses can rent and use an integrated office as their headquarters address – contact address, without having to invest too much initial cost.
Addresses allowed for registration:
Addresses not allowed to register:
Companies must comply with a number of regulations related to headquarters as follows:
Based on the Enterprise Law 2020, the head office address must meet the following requirements when using a virtual office:
Conclusion: Currently, the law does not prohibit renting a virtual office as a business registration office. Although there is no official document specifically regulating this type, a virtual office is still considered legal if it meets the requirements for a company headquarters as mentioned above and meets the requirements of other laws regulating business activities in each specific case.
Similar to domestic enterprises, the Enterprise Law 2020 does not prohibit the form of virtual office. However, because FDI is also subject to the Investment Law 2020, the head office address is often also the location of the investment project , so the company’s head office address must meet the appraisal requirements during the process of granting the Investment Registration Certificate (IRC) and appraising the investment project.
Accordingly, the implementation of a specific investment project must be carried out at a location appropriate to the investment project. Therefore, in most cases, virtual offices are not suitable for implementing investment projects.
Violations of the company’s headquarters address may result in one of the legal statuses of the enterprise being ” No longer conducting business at the registered address “.
This is the legal status of an enterprise that, through inspection and verification by the Tax Administration and relevant units, cannot find the enterprise at the registered address.
Information about businesses that are no longer operating at their registered address is provided by the Tax Administration to the Business Registration Authority.
As a result, the company’s tax code may be locked (all tax transactions locked) and it will not be able to make changes to its business registration information until the tax code is reopened.
In case an enterprise declares dishonestly or inaccurately the head office address, it will be penalized according to Article 43 of Decree No. 122/2021/ND-CP mentioned above. Specifically: Article 43 of Decree No. 122/2021/ND-CP stipulates: “A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for dishonestly or inaccurately declaring the contents of business registration”.