Do household businesses that shut down their business operations have to submit their original certificates of household business registration in Vietnam?

Do household businesses that shut down their business operations have to submit their original certificates of household business registration in Vietnam?

Article 92 of Decree No. 01/2021/ND-CP provides for shutdown of household business as follows:

1. When a household business shuts down, it must send a notification of shutdown of operation to the district-level business registration authority where it was registered. The notification must be accompanied by the following documents:

a) The notification of invalidation of TIN by the tax authority;

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

c) The original certificate of household business registration.

2. The household business shall fully pay debts, including tax debts and financial liabilities which have been not yet fulfilled before submitting the application for shutdown of the household business, unless otherwise agreed upon by the household business and its creditors. The district-level business registration authority shall consider the validity of received documents and give a notification of shutdown to the household business.

Thus, in case your household business shuts down its business activities, you must send a notice of termination of business household activities to the district-level business registration office where it has registered, together with the original certificate of household business registration and other relevant documents in accordance with regulations in Vietnam.

How much is fine for shutting down a household business without returning the original certificate of household business registration in Vietnam? 

Article 63 of Decree 122/2021/ND-CP stipulates violations against regulations on information provision and reporting by household businesses as follows:

1. A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for any of the following violations:

a) Failure to submit a business report at the request of the district-level business registration authority;

b) Changing the household business’s owner without submitting an application for changes to household business to the district-level business registration authority where the household business is registered;

c) Suspending or resuming business ahead of schedule without sending a written notification to the district-level business registration authority where the household business is registered;

d) Changing business location without notifying the district-level business registration authority;

dd) Shutting down a household business without sending a notification or without returning the original certificate of household business registration to the district-level business registration authority;

e) Changing a business line without sending a notification the business registration authority of the district where the household business’s head office is located;

g) Carrying out business operations at multiple locations without notifying the business registration authority of the district where the household business is headquartered, tax authority or market surveillance authority.

In the case of a tax offence, fines therefor shall be imposed according to regulations on penalties for administrative tax offences.

2. Remedial measures:

The violator is compelled to:

a) submit a business report at the request of the district-level business registration authority as requested if the violation specified in Point a Clause 1 of this Article is committed;

b) notify the district-level business registration authority to the enterprise registration if any of the violations specified in Points b, c, d, dd, e and g Clause 1 of this Article is committed.

Besides, in Clause 2, Article 4 of Decree 122/2021/ND-CP, the fine levels are as follows:

2. The fines for administrative violations specified in this Decree are imposed upon organizations (except for the fines for violations specified in Point c Clause 2 Article 28; Points a and b Clause 2 Article 38; Article 62 and Article 63 of this Decree, which are imposed upon individuals). For the same violation, the fine incurred by an individual is 1/2 (half) that incurred by an organization.

According to this Article, in case of shutting down a household business without returning the original certificate of household business registration, a fine of between VND 2,500,000 and VND 5,000,000 may be imposed. At the same time must return the original certificate of household business registration to the business registration office of the district in accordance with regulations in Vietnam.

What are cases of revocation of certificate of household business registration in Vietnam?

In Clause 1, Article 93 of Decree No. 01/2021/ND-CP, regulations on revocation of certificate of household business registration are as follows:

1. A household business shall have its certificate of household business registration revoked in the following cases:

a) Information provided in the application for household business registration is fraudulent;

b) The business is suspended for more than 06 consecutive months without notifying the district-level business registration authority where the business household was registered and the tax authority;

c) The household business engages in banned business lines;

d) The household business is established by person(s) banned from establishing the household business;

dd) The household business fails to send reports as prescribed in Clause 6 Article 16 hereof to the district-level business registration authority within 03 months from the prescribed deadline or the receipt of written request;

e) It is revoked under a Court’s decision or at the request of a competent authority as prescribed by law.

The above are cases in which household businesses have their original certificates of household business registration revoked in accordance with law in Vietnam.

Best Regards!