REGULATIONS ABOUT THE LOCATION OF THE HEAD OFFICE IN VIETNAM

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Choosing the location of the head office is one of the conditions to establish an enterprise. Where should enterprises locate their headquarters to be convenient for production and business activities and under the law? The following article by will help customers find out the latest legal information about the location of the business headquarters.OTIS LAWYERS

The Headquarter

 Article 42 of the Enterprise Law 2020 stipulates that the head office of an enterprise is as follows: “The head office of an enterprise is located in the Vietnamese territory, is the contact address of the enterprise and determined according to the geographical of the administrative unit; owning the phone number, fax number, and email (if any).”

Thus, the head office of an enterprise is determined according to the geographical boundaries of the administrative unit, including the following four levels:

  • Level 1: Number,alleys, lanes,streets/civil groups/hamlets
  • Level 2: Commune/Ward/Town;
  • Level 3: District/ Town/ Provincial City;
  • Level 4: Province/City.

The headquarter is notallowed to locate in the following locations

One of the difficulties when establishing a business is choosing the right location for the head office. In fact, in many cases, investors only found out that this location is not allowed to be located for business establishment after signing the rental contract. Therefore, investors should note the cases listed below :

The location is unknown address information.

There are four levels to determine the Head office address. 

However, some locations cannot identify at level 1 due to changing administrative units (number, alley, lane, street/streets/civil groups/hamlets) /hamlet/village). For example, the address identifies the street but does not specify the number at the street... These addresses will be refused to locate the headquarters.

Therefore, before establishing the head office, investors need to choose a completed address with 4-level. At the same time, businesses should note that the location of the head office has all documents to prove the legal use right or ownership when the tax authority comes down to inspect that headquarters.

The address of the head office is an apartment building with the purpose of living

According to the provisions of Clause 3, Article 3 of the Law on Housing 2014, apartment buildings are divided into two types: apartment buildings with residential purposes and apartment buildings with mixed-use residential and business purposes.

Clause 11 Article 6 of the Law on Housing 2014 prohibits the following acts: “Using the apartment with residential purposes for non-residential purposes”

Thus, the law prohibits the use of the apartment to live as an office, do business, or set up the address of the company's headquarters. In case the enterprise locates its head office in an apartment building, it must determine that the apartment building is a mixed-use apartment for living and doing business and provide documents to prove it.

Head office address does not satisfy other conditions

For several specific business lines, if an enterprise chooses its head office address which is also the address to conduct business, the headquarter address must respond to specific requirements to conduct operations. For example: For the hotel business, Article 22 of Decree 168/2017/ND-CP stipulates the minimum conditions for technical facilities and services for hotels as follows:

  • Have at least teen bedrooms; There is a front desk and a shared bathroom.
  • There is parking for guests for resort hotels and roadside hotels.
  • There are kitchens, dining rooms, and catering services for resort hotels, floating hotels, and roadside hotels.

Therefore, depending on each business line, it may or may not require specific conditions for the head office of the business, investors should pay attention to consider other specialized legal regulations to choose a location for the business.

Choosing the right head office plays an important role in the long-term and sustainable development of the business. To be sure that the location you plan to be is allowed to be the headquarters of your enterprise, please don't hesitate to contact OTIS LAWYERS for advice.

OTIS LAWFIRM & PARTNERS

Address: K28 Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi

Mobile: 0987.748.111

Email: info@otislawyers.vn

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