Do household businesses need to notify when changing their headquarters in Vietnam?

Do household businesses need to notify when changing their headquarters in Vietnam?

Will a household business that does not notify when changing its headquarters to another district be fined? Thanks for regulatory support.

Reply:

Clause 4, Article 90 of Decree 01/2021/ND-CP has regulations on registration of changes to household business registration information, accordingly:

4. In case a household business is relocated to another district, the household business must send an application for relocation to the business registration authority of the district to which it is relocated. The application must include copies of the following documents:

a) The notification of changes to household business registration information which bears the signature of the owner of the household business;

b) The copy of the minutes of meeting of family household members on relocation of the household business if the household business is established by family household members;

c) Copies of legal documents of the owner of the household business or family household members applying for household business registration.

...

Thus, according to regulations in Vietnam, when a household business moves its head office address to another district where the household business has registered, the household business sends a dossier notifying the change of address as above to the district-level Business Registration Authority where the new headquarters is intended to be located.

Do I have to prove location to register my household business in Vietnam?

Yesterday I went to the district to complete business registration procedures. I submitted all valid documents but they replied that I had to submit additional documents to prove location such as Certificate of land use rights or lease contract. So is it true? I see other people who worked before them did not have to submit this type of paperwork.

Reply:

Clause 2, Article 87, Decree 01/2021/ND-CP regulates household business registration documents, including:

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.

At the same time, according to Clause 1, Article 82 of Decree 01/2021/ND-CP clearly states:

1. Certificates of household business registration shall be issued to household businesses that are duly established and operating under this Decree. A household business shall be issued with the certificate of household business registration if all of the following conditions are satisfied:

a) The registered business lines are not banned;

b) The name of the household business is conformable with regulations of Article 88 hereof;

c) The application for household business registration is valid;

d) Fees for household business registration are fully paid.

Thus, currently there is no regulation that the components of the household business registration dossier must include a Certificate of land use rights (red book) or a business location lease contract, so the district business registration agency's request to you has no legal basis in Vietnam.

Do household businesses need to notify when changing their headquarters in Vietnam? (Image from the Internet)

Can household business owners hire others to manage their business in Vietnam?

Can household business owners hire others to manage their business in Vietnam? I am the owner of a household business, providing car repair services, can I hire someone else to manage the activities of my business on my behalf?

Reply:

Pursuant to Article 81 of Decree 01/2021/ND-CP on business registration, there are provisions 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.

Thus, according to the above regulations in Vietnam, if you are the owner of a household business, you have right to hire other people to manage and operate the business activities of the household business of which you are the owner. However, this hired person is not responsible for the debts or property obligations of the household business, the responsible person is still you.

Best regards!