Is a household business required to notify when it shuts down? How much is the fine of a household business in Vietnam if it shuts down without sending a notification?
Is a household business required to notify when it shuts down?
Pursuant to Article 92 of Decree 01/2021/ND-CP stipulating the shutdown of household business in Vietnam as follows:
Shutdown of household business in Vietnam
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.
Thus, 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.
At the same time, 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.
Is a household business required to notify when it shuts down? How much is the fine of a household business in Vietnam if it shuts down without sending a notification?
How much is the fine of a household business in Vietnam if it shuts down without sending a notification?
Household businesses that shut down without sending a notification may be administratively sanctioned as prescribed in Article 63 of Decree 122/2021/ND-CP with the following fines:
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.
Thus, in case of 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, a fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed.
- In addition to being fined, the household business that terminates its operation but fails to notify is also subject to the remedial measure of forcing a notification to the district-level business registration authority for violations.
Is a household business suspending business operations required to notify?
Pursuant to Article 91 of Decree 01/2021/ND-CP stipulating the suspension of business operations as follows:
Business suspension and resumption of business ahead of notified schedule
1. If the suspension period is 30 days or longer, the household business must send a notification to the business registration authority of district where it was registered and its supervisory tax authority.
2. If the household business suspends business or resumes its business ahead of the notified schedule, the household business shall send a written notification to the business registration authority of district where it was registered at least 03 working days before the planned date of business suspension or resumption of business ahead of the notified schedule. Such notification must be enclosed with the copy of the minutes of the meeting of family household members on business suspension or resumption of business ahead of schedule if the household business is established by family household members. When receiving the notification, the district-level business registration authority shall give a confirmation slip to the household business. Within 03 working days from the receipt of the valid application, the district-level business registration authority shall issue a certificate of registration of business suspension or certificate of registration of resumption of business ahead of the notified schedule to the household business.
Thus, if the suspension period is 30 days or longer, the household business must send a notification to the business registration authority of district where it was registered and its supervisory tax authority.
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