Navigating the complexities of foreign investments and capital transfers is a significant aspect of global business operations. One key question that often arises is whether a company is obligated to close its representative office before proceeding with the transfer of capital to foreign investors. This query is pivotal for businesses seeking to expand their international presence while complying with the regulations of both their home country and the foreign market. In this discussion, we will explore the considerations and requirements related to this process.
Question:
When a domestic company transfers its capital and has a representative office, does the company have to close the representative office before transferring the capital?
Answer:
In case the enterprise no longer intends to operate its representative office, it is recommended that the enterprise submits a dossier to terminate the operations of the representative office as stipulated in Article 72 of Decree No. 01/2021/ND-CP on business registration. The enterprise can refer to the procedures and download the termination of branch/representative office registration form at the following address: www. dangkykinhdoanh. gov.vn/ news/ latest-news/Reference templates for business registration according to the provisions of Law on Investment 2020 No. 59/2020/QH14.
Conclusion
In conclusion, the decision regarding whether a company must close its representative office before transferring capital to foreign investors hinges on various factors, including the regulatory framework of both the company’s home country and the foreign jurisdiction. It is essential for businesses to conduct thorough research, seek legal counsel, and adhere to the specific requirements of the countries involved to ensure a smooth and compliant capital transfer process. By understanding and addressing these considerations, companies can effectively navigate the intricate landscape of international investments and maintain a strong global presence.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
