What are benefits of plan to simplify administrative procedures in field of establishment and operation of household businesses under state management in Vietnam?

What are benefits of plan to simplify administrative procedures in field of establishment and operation of household businesses under state management in Vietnam? 

What are procedures for simplifying administrative procedures for household businesses registration in Vietnam?

In Item 1.1, Subsection 1, Section I, Appendix of the plan to simplify administrative procedures in the field of establishment and operation of household businessess under the state management of the Ministry of Planning and Investment, promulgated together with Decision 397 /QD-BKHDT in 2023 simplifies administrative procedures for household businesses registration as follows:

1.1. Simplified content

a) Regarding the order of execution:

- Supplementing regulations on the order of implementation and method of conducting household businesses registration via the electronic information network using public digital signatures in order to encourage household businessess to register online.

- Supplementing regulations on the order of granting household businesses codes (household businesses numbers are also tax codes) of household businessess. The granting of household businesses codes is carried out during the process of business registration by the business registration authority in order to link the procedures for registration of household businesses establishment and tax registration.

b) Regarding requirements:

Supplementing regulations on requirements and conditions for carrying out procedures for application for registration of household businesses establishment via electronic information network.

c) Regarding fees and charges:

Supplement regulations on payment methods for household businesses registration fees through direct forms, bank transfer or online payment services.

d) Regarding the application form and declaration form:

Amending and supplementing information in Appendix III-1 (Application for household businesses registration) issued together with the Minister of Planning and Investment's Circular No. 01/2021/TT-BKHĐT guiding the registration of household businessess. Register your business as follows:

- Additional detailed information to be declared for business lines, including ordinal number, industry name and industry code.

- Supplement declaration information on tax registration to serve the connection between household businesses registration procedures and tax registration.

- Remove regulations for information fields declaring legal documents such as passports and other types of documents.

Thus, the order of simplifying administrative procedures for household businesses registration in Vietnam is specified as follows:

- Supplementing regulations on the order of implementation and method of conducting household businesses registration via the electronic information network using public digital signatures in order to encourage household businessess to register online.

- Supplementing regulations on the order of granting household businesses codes (household businesses numbers are also tax codes) of household businessess. The granting of household businesses codes is carried out during the process of business registration by the business registration authority in order to link the procedures for registration of household businesses establishment and tax registration.

What are benefits of plan to simplify administrative procedures in field of establishment and operation of household businessess under state management in Vietnam?

In Item 1.3, Subsection 1, Section I, Appendix of the plan to simplify administrative procedures in the field of establishment and operation of household businessess under the state management of the Ministry of Planning and Investment, promulgated together with Decision 397 /QD-BKHDT in 2023 has benefits of plan to simplify administrative procedures in field of establishment and operation of household businessess under state management as follows:

1.3. Benefits of the simplification plan

- Cost of administrative procedures compliance before simplification: 83,391,250,000 VND

- Administrative procedure compliance cost after simplification: VND 57.124,000,000

- Cost savings: 26,267,250,000 VND

- Cost reduction rate: 31.50%.

Thus, the plan to simplify administrative procedures in the field of establishment and operation of household businessess under state management has the benefit of reducing the cost of administrative compliance from VND 83,391,250,000 before the simplification to 57,124,000,000 VND after simplification.

In addition, the option also saves VND 26,267,250,000, the cost reduction rate is 31.50%.

What are reasons for simplifying administrative procedures for household businesses registration in Vietnam?

In Item 1.1, Subsection 1, Section I, Appendix of the plan to simplify administrative procedures in the field of establishment and operation of household businessess under the state management of the Ministry of Planning and Investment, promulgated together with Decision 397 /QD-BKHDT in 2023 stipulates the reasons for simplifying administrative procedures for household businesses registration as follows:

- To improve the legal framework for business registration and tax registration for household businesses. Accordingly, household businessess only submit a single set of documents to carry out business registration procedures, tax registration and receive results at a single administrative agency, instead of household businessess having to submit 02 sets of documents (including 01 set of household businesses registration documents, 01 set of tax registration documents), receive results at 02 agencies (business registration agency and tax registration agency).

- The connection between the two procedures for business registration and tax registration for household businessess will reduce travel costs for people, eliminate duplicate declarations and documents, save time and the cost of administrative procedures, creating convenience for the people, and at the same time significantly reducing the workload for state administrative agencies.

- In order to promote the application of information technology in household businesses registration, to digitize the entire business process and information on household businessess, to build a centralized and unified database on household businessess.

- To help household businessess easily learn and comply with the legal provisions on their rights and obligations in carrying out administrative procedures, and at the same time create more favorable conditions for fee payment and selection of forms. payment method for people's household businesses registration fee.

- The household businesses only declares the identity card number or citizen identification number in service of the tax registration agency scanning the tax code to verify the individual, whether the household member has established a household businesses before or not. 

- Integrate information to be declared on business registration and tax registration in the direction of minimalism, standardization and electronicization.

- For registration agencies, there are more grounds to consider and process dossiers as well as reduce processing time for dossiers.

Best Regards!

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