Can establish an enterprise and its branches at the same time?

A number of enterprises have plans to establish branches in order to develop the production and business scale. Can establish an enterprise and its branches at the same time?

Can establish an enterprise and its branches at the same time?

In accordance with Clause 1, Article 45, Law on Enterprise 2020:

An enterprise may establish its branches and representative offices in Vietnam and overseas.  An enterprise may establish one or more than one branch and a representative office in one locality by administrative boundary.

Also in accordance with Clause 1, Article 44, Law on Enterprise 2020, the branch of an enterprise is a dependent unit of the enterprise.

Therefore, any organization that wants to establish its branches must be a formal enterprise in accordance with law provisions.

In accordance with  Clause 15, Article 4, Law on Enterprise 2020, the enterprise registration certificate means a paper document or an electronic document containing enterprise registration information that is issued by a business registration agency to an enterprise.

In conclusion, an enterprise can only submit the dossier for establishing its branches after being licensed with an Enterprise registration certificate.
 

Establish an enterprise and its branches
Can establish an enterprise and its branches at the same time? (Illustration)

The relationship between an enterprise and its branches

1. Names of branches

In accordance with Clause 2, Article 40, Law on Enterprise 2020, the name of a branch, representative office or business location of an enterprise must consist of the name of the enterprise accompanied by the words “Chi nhanh”, for a branch, or “Van phong dai dien”, for a representative office, or “Dia diem kinh doanh”, for a business location.

Therefore, the names of branches include:

- Words “Chi nhanh”

- Types of business

- Private name of an enterprise

For example ABC one-member liability limited company

2. Business lines

In accordance with Clause 1, Article 41, Law on Enterprise 2020, an Identical name means the Vietnamese name of a registration-requesting enterprise that is entirely identical to the Vietnamese name of a registered enterprise.

In the case that an enterprise wants to establish its branches to do businesses that are not in the enterprise's business lines, the enterprise must make the procedure for supplementing sectors and trades to the business lines.

Here is the answer to the question: Can establish an enterprise and its branches at the same time?

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