What are the documents of notification of shutdown of household business in Vietnam? What is the latest form of notification from July 1, 2023?
What are the documents of notification of shutdown of household business in Vietnam?
Pursuant to Article 92 of Decree No. 01/2021/ND-CP as follows:
Shutdown of household business
1. When a household business shuts down, it must send a notification of shutdown of operation to the district-level business registration authority where it was registered. The notification must be accompanied by the following documents:
a) The notification of invalidation of TIN by the tax authority;
b) The copy of the minutes of meeting of family household members on shutdown of the household business if the household business is established by family household members;
c) The original certificate of household business registration.
2. The household business shall fully pay debts, including tax debts and financial liabilities which have been not yet fulfilled before submitting the application for shutdown of the household business, unless otherwise agreed upon by the household business and its creditors. The district-level business registration authority shall consider the validity of received documents and give a notification of shutdown to the household business.
According to Clause 1, Article 92 of Decree No. 01/2021/ND-CP above, the documents of notification of shutdown of household business include:
- The notification of shutdown of household business;
- The notification of invalidation of TIN by the tax authority;
- The copy of the minutes of meeting of family household members;
- The original certificate of household business registration.
What are the documents of notification of shutdown of household business in Vietnam? What is the latest form of notification from July 1, 2023?
What is the latest form of notification of shutdown of household business from July 1, 2023?
The latest form of notification of shutdown of household business from July 1, 2023 is the form in Appendix VI-8 issued together with Circular No. 02/2023/TT-BKHDT.
Download the latest form of notification of shutdown of household business: Click here.
What is the penalty for shutting down a household business without sending a notification?
For violations against regulations on information provision and reporting by household businesses, Article 63 of Decree No. 122/2021/ND-CP provides for as follows:
Violations against regulations on information provision and reporting by household businesses
1. A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for any of the following violations:
a) Failure to submit a business report at the request of the district-level business registration authority;
b) Changing the household business’s owner without submitting an application for changes to household business to the district-level business registration authority where the household business is registered;
c) Suspending or resuming business ahead of schedule without sending a written notification to the district-level business registration authority where the household business is registered;
d) Changing business location without notifying the district-level business registration authority;
dd) Shutting down a household business without sending a notification or without returning the original certificate of household business registration to the district-level business registration authority;
e) Changing a business line without sending a notification the business registration authority of the district where the household business’s head office is located;
g) Carrying out business operations at multiple locations without notifying the business registration authority of the district where the household business is headquartered, tax authority or market surveillance authority.
In the case of a tax offence, fines therefor shall be imposed according to regulations on penalties for administrative tax offences.
2. Remedial measures:
The violator is compelled to:
a) submit a business report at the request of the district-level business registration authority as requested if the violation specified in Point a Clause 1 of this Article is committed;
b) notify the district-level business registration authority to the enterprise registration if any of the violations specified in Points b, c, d, dd, e and g Clause 1 of this Article is committed.
Thus, according to the above provisions, a household business shutting down its operation without sending a notification shall be handled as follows:
- A fine ranging from VND 5,000,000 to VND 10,000,000 (imposed upon individuals, if the organization commits the same violation, the fine will be doubled);
- The violator is compelled to send the notification to the district-level business registration authority.
Circular No. 02/2023/TT-BKHDT takes effect from July 1, 2023.
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