Can the owner of a household business authorize another person to follow procedures for household business registration in Vietnam?
What are the rights and obligations of owners of household businesses in Vietnam?
Pursuant to Article 81 of Decree No. 01/2021/ND-CP stipulating the rights and obligations of owners of household businesses in Vietnam as follows:
Rights and obligations of owners of household businesses and family household members applying for household business registration
1. The owner of a household business shall fulfill tax and other financial liabilities, and perform business operations of the household business in accordance with regulations of law.
2. The owner of a household business shall represent the household business in civil proceedings, as the plaintiff, defendant, person with relevant interests and duties in front of the court or arbitral tribunal, and perform other rights and obligations as prescribed by law.
3. The owner of a household business may hire another person to manage and direct business operations of the household business. In this case, the owner and other family household members applying for household business registration remain liable for debts and other asset-related liabilities arising from business operations.
4. The owner and other family household members applying for household business registration shall be liable for all business operations of the household business.
5. They shall perform other rights and obligations as prescribed by law.
Thus, owners of household business have the following rights and obligations:
- The owner of a household business shall fulfill tax and other financial liabilities, and perform business operations of the household business.
- The owner of a household business shall represent the household business in civil proceedings, as the plaintiff, defendant, person with relevant interests and duties in front of the court or arbitral tribunal, and perform other rights and obligations.
- The owner of a household business may hire another person to manage and direct business operations of the household business.
Note: In this case, the owner and other family household members applying for household business registration remain liable for debts and other asset-related liabilities arising from business operations.
- The owner and other family household members applying for household business registration shall be liable for all business operations of the household business.
Can the owner of a household business authorize another person to follow procedures for household business registration in Vietnam?
Who is considered the owner of household business?
Pursuant to Clause 1, Article 79 of Decree No. 01/2021/ND-CP stipulating as follows:
Household business
1. A household business is established by an individual or family household members that shall take responsibility for business operations of the household business with all of their property. If a household business is established by members of a family household, one of them shall be authorized to act as the representative of the household business. The individual applying for registration of household business or the person authorized by the family household members to act as the representative of the household business shall be the owner of the household business.
Thus, a household business is established by an individual or family household members that shall take responsibility for business operations of the household business with all of their property.
The individual applying for registration of household business or the person authorized by the family household members to act as the representative of the household business shall be the owner of the household business.
Can the owner of a household business authorize another person to follow procedures for household business registration in Vietnam?
In Article 84 of Decree No. 01/2021/ND-CP on the rules for household business registration as follows:
Rules for household business registration in Vietnam
1. The household business or its founder shall complete the application for household business registration and take legal responsibility for the legitimacy, truthfulness, and accuracy of information therein.
2. The district-level business registration authority is responsible for the legitimacy of the application for household business registration, not violations of law committed by the household business or its founder.
3. The district-level business registration authority is not responsible for settling disputes between individuals of a household business or between them and other entities.
4. The owner of the household business may authorize another entity to follow procedures for household business registration as prescribed in Article 12 hereof.
Thus, the owner of the household business may authorize another entity to follow procedures for household business registration.
Pursuant to Article 12 of Decree No. 01/2021/ND-CP, the authorization to follow enterprise registration procedures will be carried out according to the following provisions:
- If an individual is authorized, the application for enterprise registration must include the letter of attorney and copies of legal documents of the authorized individual. The notarization or certification of the letter of attorney is not compulsory.
- If an organization is authorized, the application for enterprise registration must include:
+ The copy of the service contract signed with the enterprise registration service provider;
+ The letter of introduction and legal documents of the person introduced to directly follow enterprise registration procedures.
- If a public postal service provider is authorized, the postal worker shall submit the copy of application receipt which is made according to the form stipulated by the public postal service provider and bears the signatures of the postal worker and the person competent to sign the application form for enterprise registration.
- If a postal service provider that does not provide public postal services is authorized, such authorization shall follow Clause 2 Article 12 of Decree No. 01/2021/ND-CP.
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