Procedures for Opening a Used Motorcycle Dealership in Accordance with Current Regulations

My family currently has a business idea to open a shop for buying and selling used motorcycles. After researching, we intend to open it under the model of a household business, which means registering the business at one location, with the five of us siblings working together, as we all have families. However, we are still unclear about the procedures and formalities for opening a used motorcycle shop according to current regulations. We would greatly appreciate the support and assistance from the advisory board.Hong Linh (linh****@gmail.com)

As you mentioned, you have come up with a business idea for buying and selling used motorcycles and have done basic preparation by researching individual households, therefore, we provide further support to help you understand what an individual household business is.

Article 66 Clause 1 of Decree 78/2015/ND-CP on enterprise registration stipulates:

A household business is owned by an individual or a group of individuals who are Vietnamese citizens over the age of 18 with full civil capacity or a household, and is only registered for business at one location, employs fewer than ten people, and is liable with all of its assets for its business activities.

The procedure for opening a used motorcycle sales shop is stipulated in Article 71 of Decree 78/2015/ND-CP. To be specific:

  1. An individual, group of individuals, or household representative sends a Business Registration Application for a household business to the district-level business registration authority where the business location is situated. The content of the Business Registration Application includes:

    a) Name of the household business, business location address; phone number, fax number, email (if any);

    b) Business sector and line;

    c) Amount of business capital;

    d) Number of employees;

    e) Full name, signature, residential address, number, and date of issue of the Citizen Identity Card or Identity Card or valid Passport for individuals establishing a household business for a household business established by a group of individuals; of the individual for a household business established by an individual or household representative in cases where the household business is established by a family.

Accompanying the Business Registration Application must be a valid copy of the Citizen Identity Card, Identity Card, or valid Passport of individuals participating in the household business or the household representative and a valid copy of the meeting minutes of the group of individuals regarding the establishment of the household business for cases where a group of individuals establishes the household business.

  1. Upon receipt of the application, the district-level business registration authority issues a Receipt and grants a Business Registration Certificate to the household business within 03 working days from the date of receiving the application, if the following conditions are met:

    a) The business sector and line do not belong to the list of prohibited business sectors and lines;

    b) The proposed name of the household business satisfies the provisions of Article 73 of this Decree;

    c) Payment of the registration fee in full as prescribed.

In the case of an invalid application, within 03 working days from the date of receipt of the application, the district-level business registration authority must notify, in writing, the founder of the household business of the contents needing amendment and supplementation.

  1. If after 03 working days from the date of submitting the household business registration application no Business Registration Certificate for the household business is received or no notification of amendment and supplementation of the application is received, the household business registrant has the right to file a complaint in accordance with the law on complaints and denunciations.

  2. Periodically, during the first working week of each month, the district-level business registration authority sends a list of household businesses that registered in the previous month to the same-level tax authority, Business Registration Office, and the provincial-level specialized management authority.

=> Therefore, you need to contact the Finance - Planning Department under the district-level People's Committee where the household business registration task is performed. After receiving the Business Registration Certificate, you need to contact the Tax Authority for instructions on tax declaration for your household business.

This concludes our advisory content.

Sincerely!

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