Has the business household in Vietnam registered without operation been revoked the Certificate?

If a registered household business fails to operate, will its certificate be revoked?

Pursuant to Article 93 of Decree 01/2021/ND-CP on revocation of Business Household Registration Certificate 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.

Thus, if you stop business for more than 6 months without notifying the Business Registration Agency, you may have your Business Registration Certificate revoked in Vietnam.

Are there penalties for registering without doing business in Vietnam?

According to Article 63 of Decree 122/2021/ND-CP on violations of the reporting information regime of business households, specifically:

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.

According to this Article, if you stop business but do not notify, you may be fined from VND 5,000,000 to VND 10,000,000 in Vietnam and forced to notify the business registration agency with this act.

Best Regards!