Can persons that apply for household business registration concurrently be general partners of a partnership in Vietnam?

Can persons that apply for household business registration concurrently be general partners of a partnership in Vietnam?

Pursuant to Article 80 of Decree 01/2021/ND-CP stipulating rights to establish household businesses and obligations to apply for household business registration as follows:

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.

2. Each individual or family household member mentioned in Clause 1 of this Article may register only one household business nationwide, and is entitled to contribute capital to and buy shares/stakes of other enterprises as an individual.

3. Individuals and family household members that apply for household business registration must not concurrently hold the position of sole proprietor, general partner of a partnership, unless otherwise agreed by the other general partners.

Thus, individuals that apply for household business registration may concurrently be general partner of a partnership in case the remaining general partners allow it. Therefore, if you want to set up a household business, you must convince the general partners in the company to allow the establishment of a household business in Vietnam.

Can the owner of a household business hire another person to manage the operations of household business in Vietnam?

According to Article 81 of Decree 01/2021/ND-CP stipulating rights and obligations of owners of household businesses and family household members applying for household business registration as follows:

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.

4. The owner and other family household members applying for household business registration shall be liable for all business operations of the household business.

5. They shall perform other rights and obligations as prescribed by law.

According to this Article, in case you are the owner of the household business, you can hire someone else to manage and operate the business activities of your household business in accordance with the above provisions in Vietnam. 

Household business owners and household business members are still liable for debts and other property obligations arising from business activities in Vietnam.

Where is household business registration carried out in Vietnam?  

Article 87 of Decree 01/2021/ND-CP stipulates household business registration as follows:

1. The household business registration shall be carried out at the business registration authority of district where the household business is headquartered.

2. An application for household business registration includes:

a) The application form for household business registration;

b) Legal documents of the owner of the household business or family household members applying for household business registration;

c) 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;

d) 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.

3. When receiving the application, the district-level business registration authority shall give a confirmation slip and issue the certificate of household business registration to the household business within 03 working days from the receipt of the valid application.

If the application is not satisfactory, within 03 working days from the receipt of the application, the district-level business registration authority shall give a written notification to the applicant or the household business founder. Such notification must specify necessary revisions (if any).

4. After 03 working days from the date of submission of the application for household business registration, if neither the certificate of household business registration is issued nor the notification of necessary revisions is given, the household business or its founder is entitled to lodge a complaint or denunciation in accordance with regulations of the Law on complaints and denunciation.

5. In the first week of every month, the district-level business registration authority shall send a list of household businesses registered in the previous month to the tax authority of the same district, the Business Registration Office, and regulatory agencies of the province.

Thus, household business registration is carried out at the district-level business registration authority (Business Registration Office) where the household business is located in Vietnam.

Best Regards!