The function of the representative office, Procedures for establishing a representative office
What is a representative office? The function of the representative office? Procedures for establishing a representative office? Let's find out the information in the article below.
A representative office is one of the dependent units of a certain subject. Nowadays the representative office is opened quite a lot to meet the needs of everyone. So what is the function of the representative office? Let's find out the main functions in the article below.
1. What is a representative office?
A representative office is a dependent unit of a subject. This type of office will be opened in an area where the subject is not headquartered.
According to the provisions of law, legal entities only allow legal entities to open representative offices and offices to perform their duties as authorized by legal entities. But for the commercial sector, the object of opening a representative office is extended to both commercial individuals.
The Commercial Law provides for the establishment of representative offices at home and abroad in accordance with the provisions of law. The representative offices of foreign traders in Vietnam are the units that depend on Vietnamese traders. At the same time, it was established in accordance with Vietnamese law to promote trade. Foreign traders will be fully responsible before Vietnamese law for the activities of the representative office in Vietnam.
In fact, trade representative offices are opened in places where traders have not directly made trade transactions. As a rule, offices representing economic organizations are not allowed to conduct activities on production and business for the purpose of profit-making for the purpose of profit-making only with the function of seeking or promoting.
2. What is the function of the representative office?
The function of the representative office is of special interest to everyone. The representative office was established with the main function of being an intermediary office responsible for communication and transactions with partners. At the same time, it is also responsible for conducting research and providing information to support companies to have access to the market and partners.
The representative office also has the function of reviewing the overall market and detecting violations that can adversely affect the business of the business.
The main functions of the representative office can be listed as follows:
The function of developing business lines. These sectors have been licensed by the authorities in the area operating in accordance with the current law.
Carry out reporting to local authorities in accordance with state regulations.
The function of periodic financial statements to the head office according to the company's own regulations.
The function of reporting business results and growth results. At the same time the development strategies of the facility annually.
The function of organizing economic accounting work according to the principles of independent accounting.
The function of building and perfecting the management apparatus according to the orientations of the Board of Directors.
Coordinate together with the head office of the company and facilities and branches for the exploitation of customers as well as the mobilization of employees.
The function of managing and supervising business aspects in the area of operation.
The function of drafting legal documents to serve the operation of the office is based on the legal documents of the company.
3. Can the representative office sign the contract or not?
Can the representative office sign the contract? According to the law, the representative office will not be allowed to sign the contract. Or make amends or supplement contracts with foreign traders. Except in cases where there is a legal power of attorney of traders from abroad.
In the case of representative offices working for foreign subjects in Vietnam. As a rule, the foreign trader is authorized to the head of the representative office to conclude amendments and supplements. Each implementation must have written authorization for the engagements or additions.
Through the above information, we see that the representative office will not have the function of signing contracts. Except for representative offices of foreign traders and enterprises in Vietnam.
Besides, when entering into a contract. Companies need to consult the charters and regulations of the enterprise to understand and protect their rights well.
4. What are the procedures for establishing a representative office?
Procedures for the establishment of representative offices will include records such as:
Notice of the establishment of an office
Decision on the establishment of the office of the Board of Directors in writing.
Copy of minutes of meeting minutes establishing offices
Copy the decision to the head for the office.
Valid copies of the types of papers of the individual who is the head of the office.
Recently, there are shares about the function of the representative office as well as other information. With the above information, I hope to help everyone. And for more information or need support for the rental of a representative office. Please contact us immediately.
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