What are the penalties imposed on teachers engaging in extra classes without business registration in Vietnam?

What are the penalties imposed on teachers engaging in extra classes without business registration in Vietnam?

According to Article 6 of Circular 29/2024/TT-BGDDT, teachers engaging in external extra classes must make business registration. Specifically, teachers must publicly disclose information about the subjects, schedule, location, organizational form, list of teachers, and fees of extra classes on a web portal or at the extra class center.

Business registration for extra classes is mandatory and can be conducted in two forms: household business or company.

If teachers fail to make business registration for extra classes, they may face legal penalties as follows:

- For failing to make household businesses registration (Clause 1 Article 62 of Decree 122/2021/ND-CP):

+ A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for:

+ Individuals or family members registering multiple household businesses.

+ Failing to register a household business in mandatory cases.

+ Failing to update the Household Business Registration Certificate within 10 days from the date of change.

Note: This fine applies to individuals, while organizations will incur double the fine of individuals (Clause 2 Article 4 Decree 122/2021/ND-CP).

- For failing to make enterprise registration (Clause 4 Article 46 of Decree 122/2021/ND-CP):

+ A fine ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for conducting business under a company form without registration or continuing business after the Certificate of Enterprise Registration has been revoked.

Note: This fine applies to organizations, while individuals will incur half the fine amount of organizations (Clause 2 Article 4 Decree 122/2021/ND-CP).

Therefore, teachers engaging in extra classes without household business registration will face a fine ranging from VND 5 million to VND 10 million. In case of engaging in extra classes without enterprise registration, the fine for individuals will range from VND 25 million to VND 50 million, and for organizations, from VND 50 million to VND 100 million.

What are the penalties imposed on teachers engaging in extra classes without business registration in Vietnam? (Image from the Internet)

What is the business registration application for external extra classes in Vietnam under Circular 29?

Household business registration application for external extra classes

According to regulations in Circular 29/2024/TT-BGDDT and Decree 01/2021/ND-CP, organizations or individuals providing external extra classes must make household business registration for external extra classes in compliance with the law. For household business registration, the application includes the following documents:

- Application form for registration of external extra classes: This is a crucial document expressing the intention to register a household business, including information about the business name, operating location, business line, registered capital, and representative details.

- 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.

Besides the above documents, organizations or individuals providing external extra classes must also publicly disclose information about subjects, schedule, location, list of teachers, and n fees on the web portal or at premises as required by Circular 29/2024/TT-BGDDT. The registration application is submitted to the District Business Registration Office where the household business is headquartered.

Enterprise registration application for external extra classes

According to Chapter IV of Decree 01/2021/ND-CP, the enterprise registration application for external extra classes in Vietnam is as follows:

Thus, if you wish to make enterprise registration for external extra classes, the required documents depend on the type of enterprise.

What are the fees for making household business registration for external extra classes in Vietnam?

Under point g, clause 2 Article 5 of Circular 85/2019/TT-BTC, the business registration fee is a government-collected fee for issuing business registration certificates for household businesses, cooperatives, or federations of cooperatives, including branch, representative office, or business location registration certificates of these entities.

Additionally, according to clause 7 Article 3 of Circular 85/2019/TT-BTC, the list of fee items under the authority of the Provincial People's Council is specified as follows:

(i) Residence registration fee (implemented by the local authority).

(ii) Citizen ID card issuance fee (implemented by the local authority).

(iii) Civil status fee.

(iv) Labor permit issuance fee for foreigners working in Vietnam (issued by the local authority).

(v) Land use rights, housing, and property attached to land certificate issuance fee.

(vi) Construction permit issuance fee.

(vii) Business registration fee.

Thus, the business registration fee (or household business registration fee) is a fee collected when the competent authority issues a registration certificate for a household business, cooperative, or cooperative branch. Since this fee rate is determined by the Provincial People's Council, provinces may have different fee ratels.