Can business branches open its bank accounts?

Vietnamese law does not restrict or prohibit branches from opening their own bank accounts. Therefore, in this case the branch has right to take this action.

Question: Currently, I am the director of Vinh Phuc branch of a company. My company currently only uses one bank account. Every time I need to use it to check, manage, and make statistics, I have to be authorized by the company, so it takes a lot of time. So for added convenience, can a branch open a bank account?

Answer:

Vietnamese law does not restrict or prohibit branches from opening their own bank accounts. Therefore, in this case the branch has right to take this action. When opening a bank account for a branch, it is necessary to ensure there is written permission, authorization (introduction letter) from the company and must ensure financial transparency, the company has management rights over the branch’s account.

In case the branch uses the business's bank account, this must be clearly and strictly authorized. This ensures financial transparency and compliance, especially in branch payment account management.

According to the provisions of Article 4 of Circular No. 23/2014/TT-NHNN, authorization to use payment accounts must be done as follows:

“1. During the use of payment account, account holder, chief accountant or person in charge of accounting (if any) may authorize others to act on their behalf.

2. Such authorization in the use of payment account shall be made in writing in accordance with laws and regulations on authorization. The authorization in use of a corporate payment account shall be subject to a written consent of the entity that opens the account.

3. For the purpose of authorization in using payment account, the account holder shall submit the letter of authorization together with the registration of signature specimen and a copy of the ID card or valid passport of the attorney (if the copy is not certified, the original thereof shall be presented for comparison) to the payment service supplier where the account is opened.”

For more information, please contact us:

DRAGON LAW FIRM

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