Legal Representative of Vietnam-based Enterprise
LEGAL REPRESENTATIVE
Legal Representative is an individual representing the enterprise to exercise the rights and perform the obligations arising out of transactions of the enterprise, and representing the enterprise to act as the person lodging a petition for resolution of a civil matter, as a plaintiff, defendant or person with related interests and obligations in arbitration proceedings or courts and to exercise other rights and perform other obligations in accordance with law.
APPOINTMENT
LLCs and shareholding companies may have one or more Legal Rep.
The charter of a company specifies the number, positions, rights and obligations of the Legal Rep. of the enterprise.
PRIORITY CONDITIONS
A must – always at least one Legal Representative residing in Vietnam.
Under circumstance when the sole Legal Representative exit Vietnam, the Power of Attorney is in place to authorize a person to take the rights and obligations of the legal representative. In such case, the legal representative shall remain responsible for the performance of the authorized rights and obligations.
RESPONSIBILITIES OF LEGAL REPRESENTATIVE
Legal representative of an enterprise has the following responsibilities:
- To exercise the delegated rights and perform the delegated obligations honestly and prudently and to the best of his or her ability in order to assure the lawful interests of the enterprise;
- To be loyal to the interests of the enterprise; not to abuse his or her position and power and not to use information, know-how, business opportunities and other assets of the enterprise for his or her personal benefit or that of other organizations or individuals;
- To promptly notify the enterprise in a complete and accurate manner of any enterprise in which he or she or his or her related person is the owner or holds shares or a capital contribution portion in accordance with this Law.
PRACTICES IN VIETNAM
Currently, there is no definition of “residing in Vietnam”. From practices when working with Vietnam licensing authority to obtain license for newly established enterprise, they request the Legal Representative should have “contact address” in Vietnam.
Alternative option to comply with requirement as “at leas one Legal Representative residing in Vietnam” is achieving thru Nominee Vietnamese Director.
