Is name of a household business chosen arbitrarily in Vietnam? Can a 16 year old be a coffee-house owner in Vietnam?

Is name of a household business chosen arbitrarily in Vietnam? 

Please ask, usually when establishing a business or law firm, there are regulations regarding naming. So, is there an exception for household business? That is, can it be chosen arbitrarily?

Answer: Pursuant to Point b, Clause 1, Article 82 of Decree 01/2021/ND-CP regulating certificate of household business registration:

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;

According to Article 88 of Decree 01/2021/ND-CP can be seen:

1. Each household business has its own name. The name of a household business shall consist of two elements as follows:

a) The phrase “Hộ kinh doanh”;

b) The proper name.

The proper name consists of letters in the Vietnamese alphabet, the letters F, J, Z, W, digits, and symbols.

2. It is prohibited to use words or symbols that contradict Vietnam’s tradition, history, culture, and ethics in the proper name of the household business.

3. The name of a household business must not consist of the phrase “công ty” or “doanh nghiệp”.

4. The proper name of the household business must not coincide with the name of another household business which has been registered within the same district.

Thus, in naming a household business, it is also necessary to ensure the above regulations to avoid arbitrary naming that violates the regulations set out when establishing the household business in Vietnam.

Is name of a household business chosen arbitrarily in Vietnam? Can a 16 year old be a coffee-house owner in Vietnam? (Image from the Internet)

Can a 16 year old be a coffee-house owner in Vietnam?

Hello. I have a daughter who is 16 years old. I currently intend to let her establish a coffee-house business and have her name on the registration paper. Is that possible?

Answer: Pursuant to Point a, Clause 1, Article 80 of Decree 01/2021/ND-CP regulating 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;

So, because your child is only 16 years old and not a minor, he cannot be the owner of the coffee-house in Vietnam.

Who has right to represent a household business in Vietnam? 

Dear lawyer, currently my family has 03 people, want to establish a business to sell fabric (garment) products. But I know that in private businesses, the business owner is the representative because he is alone. As for our case, are all three people representing us?

Answer: Pursuant to Clause 1, Article 79 of Decree 01/2021/ND-CP stipulates as follows:

1. A household business is established by an individual or family household members that shall take responsibility for business operations of the household business with all of their property. If a household business is established by members of a family household, one of them shall be authorized to act as the representative of the household business. The individual applying for registration of household business or the person authorized by the family household members to act as the representative of the household business shall be the owner of the household business.

Thus, according to the above regulations in Vietnam, in case you are a household member registering a household business, authorize one member to act as the business representative and the person authorized by the household members to act as the household business representative is the owner of the household business in Vietnam.

Best regards!