What are regulations on household business in Vietnam? What are rights to establish household businesses and obligations to apply for household business registration in Vietnam?
What are regulations on household business in Vietnam? What are rights to establish household businesses and obligations to apply for household business registration in Vietnam? What are rights and obligations of owners of household businesses and family household members applying for household business registration in Vietnam?
Thank you!
1. What are regulations on household business in Vietnam?
Pursuant to Article 79 of the Decree 01/2021/ND-CP stipulating household business in Vietnam 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.
2. Households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic or seasonal businesspeople, and service providers earning low revenues are not required to apply for establishment of household businesses, except for conditional business lines. The provincial People’s Committees shall specify the low revenues applied within their provinces.
2. What are rights to establish household businesses and obligations to apply for household business registration in Vietnam?
Pursuant to Article 80 of the Decree 01/2021/ND-CP stipulating rights to establish household businesses and obligations to apply for household business registration in Vietnam 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;
b) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, or is prohibited by the court from holding certain positions or doing certain works;
c) Other cases prescribed by relevant laws.
2. Each individual or family household member mentioned in Clause 1 of this Article may register only one household business nationwide, and is entitled to contribute capital to and buy shares/stakes of other enterprises as an individual.
3. Individuals and family household members that apply for household business registration must not concurrently hold the position of sole proprietor, general partner of a partnership, unless otherwise agreed by the other general partners.
3. What are rights and obligations of owners of household businesses and family household members applying for household business registration in Vietnam?
Pursuant to Article 81 of the Decree 01/2021/ND-CP stipulating rights and obligations of owners of household businesses and family household members applying for household business registration in Vietnam as follows:
1. The owner of a household business shall fulfill tax and other financial liabilities, and perform business operations of the household business in accordance with regulations of law.
2. The owner of a household business shall represent the household business in civil proceedings, as the plaintiff, defendant, person with relevant interests and duties in front of the court or arbitral tribunal, and perform other rights and obligations as prescribed by law.
3. The owner of a household business may hire another person to manage and direct business operations of the household business. In this case, the owner and other family household members applying for household business registration remain liable for debts and other asset-related liabilities arising from business operations.
4. The owner and other family household members applying for household business registration shall be liable for all business operations of the household business.
5. They shall perform other rights and obligations as prescribed by law.
Best regards!
