Sample Application for Household Business Registration: What are the regulations for the registration dossier for establishing a household business?
What is a Household Business?
According to Article 79 of Decree 01/2021/ND-CP, the regulation is as follows:
“Article 79. Household Business
1. A household business is registered for establishment by an individual or members of a family household and is fully liable with all its assets for the business operations of the household business. In cases where family household members register the household business, they shall authorize one member to be the representative of the household business. The individual registering the household business, the person authorized by the family household members to represent the household business shall be the household business owner.
2. Family households engaged in agriculture, forestry, fishery, making salt, street vending, quick snacks, itinerant trading, mobile trade, seasonal trade, and low-income service providers are not required to register as a household business, except for businesses in investment industries and trades with conditions. The People's Committee of the province, centrally-run city shall stipulate the low income level applicable within the local area.”
A household business is registered for establishment by an individual or family household members, who bear unlimited liability with all their assets for business operations.
Latest household business registration application form. How is the dossier to register a household business defined?
Who Has the Right to Establish a Household Business?
According to Article 80 of Decree 01/2021/ND-CP, the regulation is as follows:
“Article 80. Right to Establish a Household Business and Obligation to Register a Household Business
1. Individuals, family household members who are Vietnamese citizens and have full civil act capacity as prescribed by the Civil Code have the right to establish a household business as prescribed in this Chapter, except for the following cases:
a) Minors, persons with restricted civil act capacity; persons who have lost civil act capacity; persons having difficulty in perception, mastering their actions;
b) Persons being prosecuted for criminal liability, being temporarily detained, serving prison sentences, undergoing administrative handling measures at compulsory detoxification establishments, compulsory education institutions, or being prohibited by the Court from taking on a position, practicing a profession, or performing certain jobs;
c) Other cases as prescribed by relevant laws.
2. Individuals, family household members as stipulated in Clause 1 of this Article can only register one household business nationwide and have the right to contribute capital, purchase shares, buy capital contributions in enterprises as individuals.
3. Individuals, family household members registered for household business cannot simultaneously be the owner of a private enterprise or a general partner in a partnership unless agreed upon by other general partners.”
Individuals, family household members who are Vietnamese citizens and have full civil act capacity will have the right to establish a household business except for those cases excluded as per the stated regulation.
What Does the Household Business Registration Dossier Currently Include?
According to Article 87 of Decree 01/2021/ND-CP, the regulation is as follows:
“Article 87. Household Business Registration
1. Household business registration shall be conducted at the district-level business registration authority where the household business’s head office is located.
2. Household business registration dossier includes:
a) Household business registration application form;
b) Legal papers of individuals for the household business owner, family household members registering the household business, in cases where the family household members register the household business;
c) Copy of the meeting minutes of family household members regarding the establishment of the household business in cases where the family household members register the household business;
d) Copy of the authorization letter from family household members to one member as the household business owner, in cases where family household members register the household business.
3. Upon receipt of the dossier, the district-level business registration authority shall issue a receipt and issue a household business registration certificate to the household business within 03 working days from the receipt of a valid dossier.
In case the dossier is invalid, within 03 working days from the date of receipt of the dossier, the district-level business registration authority must notify in writing the person submitting the dossier or the household business founders. The notice must clearly state the reasons and requirements for amendment and supplementation of the dossier (if any).
4. If after 03 working days from the date of submission of the household business registration dossier no household business registration certificate is received, and no notification of requirement for amendment, supplementation of the household business registration dossier is received, the household business founders or household business have the right to file complaints, denunciations according to the law on complaints and denunciations.
5. Periodically, in the first working week of each month, the district-level business registration authority sends the list of registered household businesses of the previous month to the same level Tax Authority, Business Registration Office, and specialized management authority at the provincial level.”
Accordingly, when establishing a household business, one must prepare the dossier as stipulated above to submit to the district-level business registration authority where the household business’s head office is located.
Latest Household Business Registration Application Form?
Currently, the household business registration application form is executed according to Appendix III-1 issued together with Circular 01/2021/TT-BKHDT as follows:
Download the latest household business registration application form: Here.
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