Are entities providing online external extra classes in Vietnam required to make business registration?
Are entities providing online external extra classes in Vietnam required to make business registration?
Under Article 6 of Circular 29/2024/TT-BGDDT (effective from February 14, 2025) on external extra classes:
External extra classes
1. Organizations or individuals providing external extra classes with fees for students (hereinafter referred to as extra class centers) must fulfill the following requirements:
a) Register the business in accordance with the law;
b) Publicly disclose on electronic portals or post at the location of the extra class center regarding the subjects for which extra class is organized; the duration of extra class for each subject according to each grade; the location, form, and schedule of extra class sessions; the list of teachers of extra classes and the fees for extra class before enrolling students in extra classes (according to Form No. 02 in the Appendix attached to this Circular).
2. External extra classes must ensure good moral character and possess the professional capacity suitable for the subject they are extra class.
3. Teachers teaching at schools who wish to provide external extra classes must report to the Principal or Director or head of the school (hereinafter referred to as the Principal) regarding the subject, location, form, and schedule of their extra classes (according to Form No. 03 in the Appendix attached to this Circular).
Thus, according to the new regulation, entities providing external extra classes with fees in Vietnam must make business registration according to the law.
Article 3 of Decree 39/2007/ND-CP outlines entities not required to make business registration, including individuals doing the following trade activities:
1) Street trading (trading in public places) means activities of purchase and sale without a fixed location (purchase on street, sale on street or both purchase and sale on street), includes even the receipt of books, news, magazines, cultural products of traders allowed doing business in these products as prescribed by law, for sale on street;
2) Petty trading means purchase and sale of small and odd items with or without a fixed location;
3) Petty-food trading means sale of fruits, cakes, candies, drinks (beverage) with or without a fixed locations;
4) The consignment trading means purchase of goods from other places according to each consignment to sell for wholesalers or retailers;
5) Providing services: Polishing shoes, selling lottery tickets, repairing key, repairing vehicles, safekeeping for vehicles, washing for vehicles, barber, painting, taking photo and other services with or without fixed locations;
6) Other commercial activities done independently and regularly do not have to register for business.
Moreover, Clause 2, Article 79 of Decree 01/2021/ND-CP states cases where household businesses are not required to make business registration, including:
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.
Therefore, excluding the business lines listed above, individuals involved in regular, continuous commercial activities must make business registration.
Thus, entities providing online external extra classes in Vietnam must make business registration.
Are entities providing online external extra classes in Vietnam required to make business registration? (Image sourced from the Internet)
What are the rules of online external extra classes in Vietnam?
Pursuant to Article 3 of Circular 29/2024/TT-BGDDT, the rules of online external extra classes in Vietnam are:
- Extra classes are only organized when students wish to attend extra classes and have consent from parents or guardians (hereinafter collectively referred to as parents). Schools, organizations, or individuals organizing extra classes are not allowed to force students into extra classes in any manner.
- The content of extra classes must not contravene the regulations of Vietnamese law, and must not bear biases regarding race, religion, occupation, gender, or social position. There shall be no omission of educational content according to the school's educational plan to include in extra class sessions.
- The purpose of extra classes must contribute to the development of students' qualities and abilities; it must not affect the organization of the school’s education program or the implementation of the subject curriculum by teachers.
- The duration, time, location, and form of organizing extra class sessions must be suitable to the psychological and physical condition of the age group, ensuring students' health; must comply with the legal regulations about working hours, overtime, and other relevant legal regulations concerning security, order, safety, environmental hygiene, and fire prevention in the area where extra classes are held.
What are the regulations on the collection and management of fees for online external extra classes in Vietnam?
Under Article 7 of Circular 29/2024/TT-BGDDT (effective from February 14, 2025), the regulations on the collection and management of fees for extra classes in Vietnam are as follows:
- The funding for organizing internal extra classes shall be covered by the state budget and other lawful sources as prescribed by law.
- The fees for external extra classes shall follow the agreement between students' parents, students, and the extra class center.
- The collection, management, and utilization of fees for extra classes shall comply with legal regulations on finance, state budget, assets, accounting, taxation, and other related provisions.
