Vietnam: What is the fine imposed on household businesses failing to apply for household business registration where the registration is compulsory?
- In what cases can households in Vietnam fail the business registration?
- What is the fine imposed on household businesses failing to apply for household business registration where the registration is compulsory in Vietnam?
- What does the application for household business registration in Vietnam include?
In what cases can households in Vietnam fail the business registration?
According to Clause 2, Article 79 of Decree 01/2021/ND-CP on business registration, cases where household businesses can fail the business registration include:
- Households engaged in agriculture, forestry, aquaculture, salt production;
- Households engaged in street vendors;
- Nomadic businesspeople;
- Seasonal businesspeople;
- Service providers earning low revenues.
Note:
- In case households or individuals engaged in conditional business lines must still carry out business registration in accordance with the provisions of law.
- The provincial People’s Committees shall specify the low revenues applied within their provinces.
What is the fine imposed on household businesses failing to apply for household business registration where the registration is compulsory in Vietnam?
According to the provisions of Clause 1, Article 62 of Decree 122/2021/ND-CP, a fine of VND 5,000,000 to VND 10,000,000 shall be imposed on household businesses failing to apply for household business registration where the registration is compulsory as prescribed.
In addition, the above fine also applies to one of the following acts:
- Upon any individual or member of a household registering more than one household business; or
- For establishing a household business despite not having the right to establish household businesses; or
- For failure to apply for registration of changes to the certificate of household business registration with the district-level business registration authority within 10 days from the occurrence of such changes..
What does the application for household business registration in Vietnam include?
Pursuant to Article 87 of Decree 01/2021/ND-CP, the application for household business registration includes:
- The application form for household business registration;
- Legal documents of the owner of the household business or family household members applying for household business registration;
- The copy of the minutes of meeting of family household members on establishment of household business in case the household business is established by family household members;
- The copy of the letter of authorization made by the family household members to authorize a person to act as the owner of the household business in case the household business is established by family household members.
Procedures for household business registration:
Step 1: The household business sends the application to the business registration office of the district where the household business is located.
Step 2: Get the Receipt and Household Business Registration Certificate.
+ When receiving the application, the district-level business registration authority shall give a confirmation slip and issue the certificate of household business registration to the household business within 03 working days from the receipt of the valid application.
+ If the application is not satisfactory, within 03 working days from the receipt of the application, the district-level business registration authority shall give a written notification to the applicant or the household business founder. Such notification must specify necessary revisions (if any).
- After 03 working days from the date of submission of the application for household business registration, if neither the certificate of household business registration is issued nor the notification of necessary revisions is given, the household business or its founder is entitled to lodge a complaint or denunciation in accordance with regulations of the Law on complaints and denunciation.
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