The setup: a Korean logistics firm with a rep office in Hai Phong wants another in Da Nang for central-Vietnam clients. The question: how many rep offices may one foreign trader open, and how is tax handled across two provinces? Answer: as many as needed, one license each, with tax following the people on the ground.
Allowed — one license per office
The law caps neither the number of representative offices a foreign trader may open in Vietnam. Each office needs its own dossier and license, filed with the Department of Industry and Trade of the province where it sits under Articles 7 and 10 of Decree 07/2016/ND-CP (in force as of 19 October 2026). The Da Nang office cannot “ride on” the Hai Phong license — it needs a full fresh application.
Both offices are bounded by Article 30 of Decree 07/2016 and Article 18 of Commercial Law 36/2005/QH11: liaison, market research, trade promotion — no direct profit-generating activity.
Tax management: three taxes to remember
1. CIT: none arises. A properly functioning rep office has no revenue and pays no corporate income tax in either province. But if one office strays into signing contracts and collecting money, that is disguised business — back-tax and penalty risk.
2. Business license tax: usually not due. Under Article 2 of Decree 139/2016/ND-CP and the General Department of Taxation’s Official Letter 658/TCT-CS, a rep office not engaged in production or business of goods or services pays no business license tax. Two compliant offices mean two exemptions.
3. PIT: filed where salaries are paid. Each office withholds, declares, and pays personal income tax for its own staff (Article 24 of Circular 111/2013/TT-BTC) — Da Nang staff in Da Nang, not folded into Hai Phong; same for social insurance per location.
Running two offices in practice
Appoint a separate chief per office (absent over 30 days without delegation means replacement — Article 33 of Decree 07/2016), and keep costs, staff, and leases separate so each office proves licensed-scope compliance when inspected.
Frequently asked questions
1. How many rep offices may one foreign company open?
No cap — each office applies for its own license with the provincial Department of Industry and Trade.
2. Can the second office share the first office’s license?
No — one license per office, each a full new dossier under Article 10 of Decree 07/2016.
3. Do two offices pay business license tax twice?
Neither pays if both stay out of production/business activity — per Official Letter 658/TCT-CS.
4. Where is staff PIT filed?
Each office withholds, declares, and pays for its own employees with the local tax authority (Article 24 of Circular 111/2013/TT-BTC).
5. Can two rep offices merge into one branch?
Yes — but a branch is a different animal: it may sign contracts, earn revenue, and must file and pay taxes in full; consider it when needs outgrow rep-office functions.
This article has been quality-reviewed by the FLAW AI Legal Council