If the entity is not allowed to establish a household business, it also cannot establish a business in Vietnam?
- Who is allowed to establish a household business? Are households engaged in agriculture required to apply for establishment of household businesses in Vietnam?
- May the owner of a household business hire another person to manage and direct business operations of the household business in Vietnam?
- If the entity is not allowed to establish a household business, it also cannot establish a business in Vietnam?
Who is allowed to establish a household business? Are households engaged in agriculture required to apply for establishment of household businesses in Vietnam?
Pursuant to the provisions of Article 79 of Decree 01/2021/ND-CP on household business:
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.
2. Households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic or seasonal businesspeople, and service providers earning low revenues are not required to apply for establishment of household businesses, except for conditional business lines. The provincial People’s Committees shall specify the low revenues applied within their provinces.
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.
Households engaged in agriculture earning low revenues are not required to apply for establishment of household businesses, except for conditional business lines.
The provincial People’s Committees shall specify the low revenues applied within their provinces.
If the entity is not allowed to establish a household business, it also cannot establish a business in Vietnam? (Image from the Internet)
May the owner of a household business hire another person to manage and direct business operations of the household business in Vietnam?
Pursuant to the provisions of Clause 3 Article 81 of Decree 01/2021/ND-CP on the rights and obligations of owners of household businesses and family household members applying for household business registration:
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.
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Therefore, 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.
If the entity is not allowed to establish a household business, it also cannot establish a business in Vietnam?
Pursuant to the provisions of Clause 1 Article 80 of Decree 01/2021/ND-CP on rights to establish household businesses and obligations to apply for household business registration:
Rights to establish household businesses and obligations to apply for household business registration
1. Any individual or family household member that is a Vietnamese citizen and has full legal capacity as prescribed in the Civil Code shall have the right to establish household businesses in accordance with this Chapter, except the following cases:
a) Minors; people with limited legal capacity; incapacitated people; people having difficulties in controlling their behaviors;
b) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, or is prohibited by the court from holding certain positions or doing certain works;
c) Other cases prescribed by relevant laws.
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Pursuant to Clause 2, Article 17 of the Law on Enterprise 2020 on the rights to establish, contribute capital, buy shares/stakes and manage enterprises:
The rights to establish, contribute capital, buy shares/stakes and manage enterprises
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2. The following organizations and individuals do not have the right to establish and manage enterprises in Vietnam:
a) State authorities, People’s armed forces using state-owned assets to establish enterprises to serve their own interests;
b) Officials and public employees defined by the Law on Officials and the Law on Public Employees;
c) Commissioned officers, non-commissioned officers, career military personnel, military workers and public employees in agencies and units of Vietnam People’s Army; commissioned officers, non-commissioned officers and police workers in police authorities and units, except for those designated and authorized representatives to manage state-owned stakes in enterprises or to manage state-owned enterprises;
d) Executive officers and managers of state-owned enterprises prescribed in Point a Clause 1 Article 88 of this Law, except those who are designated as authorized representatives to manage state-owned stakes in other enterprises;
dd) Minors; people with limited legal capacity; incapacitated people; people having difficulties controlling their behaviors; organizations that are not juridical persons;
e) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, has limited legal capacity or is incapacitated, is not able to control his/her own behaviors, is banned by the court from holding certain positions or doing certain works; other cases prescribed by the Law on Bankruptcy and the Anti-corruption Law.
If requested by the business registration authority, the applicant shall submit the judicial records;
g) Juridical persons that are banned from business operation or banned from certain fields as prescribed by the Criminal Code.
Therefore, any individual or family household member that is a Vietnamese citizen and has full legal capacity as prescribed in the Civil Code shall have the right to establish household businesses. A foreigner does not have the right to establish household businesses.
However, this entity does not fall into the category of cases where establishment of a business is prohibited under Article 2, Clause 17 of the Law on Enterprise 2020, so foreigners still have the right to establish a business.
Therefore, if the entity is not allowed to establish a household businesses, it does not automatically mean it cannot establish a business
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