Is organizing extra classes without charging fees in Vietnam required business registration?

Is organizing extra classes without charging fees in Vietnam required business registration? What are the fee levels for extra classes outside of school in Vietnam? What are cases where extra classes are prohibited in Vietnam?

Is organizing extra classes without charging fees in Vietnam required business registration?

Pursuant to Article 5 of Circular 29/2024/TT-BGDDT regulating extra classes in schools:

Article 5. Extra classes in schools

  1. Extra classes in schools shall not charge students and is only for students registered for additional study in specific subjects as follows:

a) Students whose academic results in the subject from the previous semester do not meet the required level;

b) Students selected by the school for advanced training for gifted students;

c) Final year students who voluntarily register for exam preparation according to the school's educational plan.

[...]

Pursuant to Article 6 of Circular 29/2024/TT-BGDDT regulating extra classes outside of school:

Article 6. Extra classes outside of school

  1. Organizations or individuals conducting extra classes outside schools that charge students (hereafter referred to as tutoring centers) must comply with the following requirements:

a) Register for business as prescribed by law;

b) Publicize on an electronic portal or post at the location of the tutoring center about the subjects available; the duration for each subject per grade group; the location, form, and schedule of tutoring; the list of tutors and the tuition fees before enrolling students (according to Form No. 02 in the Appendix attached to this Circular).

[...]

According to the above regulations, organizations or individuals conducting paid extra classes outside of schools must register for business per the legal requirements.

In cases of voluntary, supportive tutoring for students without charging fees, there is currently no specific regulation requiring business registration. However, extra classes not charging fees must adhere to the principles outlined in Article 3 of Circular 29/2024/TT-BGDDT as follows:

- Extra classes should only be organized if students, learners have a need for additional learning voluntarily and with the consent of parents or guardians. Schools, organizations, or individuals conducting extra classes are not allowed to use any form to compel students to attend extra classes.

- The content of extra classes must not violate Vietnamese laws or show bias against ethnicity, religion, profession, gender, or social status. The regular curriculum must not be reduced for the sake of extra classes.

- Extra classes should contribute to the development of students’ qualities and competencies, without interfering with the school’s educational program and teachers' execution of the curriculum.

- The duration, timing, location, and form of extra classes must be appropriate for students' age-specific psychological and physical conditions, ensure their health, and comply with legal regulations on working hours, overtime, public order, security, safety, environmental hygiene, and fire prevention at places where extra classes take place.

Is Non-Fee Tutoring Required to Register for Business?

Is organizing extra classes without charging fees in Vietnam required business registration?​ (Image from the Internet)

What are the fee levels for extra classes outside of school in Vietnam?

Pursuant to Article 7 of Circular 29/2024/TT-BGDDT regulating the collection and management of extra classes fees:

Article 7. Collection and management of extra classes fees

  1. The funding for organizing extra classes in schools comes from the state budget and other lawful financial sources as prescribed by law.
  1. The fee for extra classes outside of school is agreed upon between students' parents and the tutoring center.
  1. The collection, management, and use of extra classes fees shall be implemented in accordance with the laws regarding finance, budget, assets, accounting, taxation, and other related regulations.

According to the above regulations, the fee for extra classes outside of school is agreed upon between students' parents and the tutoring center.

What are cases where extra classes are prohibited in Vietnam?

Pursuant to Article 4 of Circular 29/2024/TT-BGDDT on cases prohibited from organizing extra classes:

- Tutoring shall not be organized for primary school students, except in the following cases: nurturing skills in arts, physical education, sports, and life skills training.

- Teachers currently teaching at schools are not allowed to conduct paid tutoring outside schools for students currently assigned to them according to the school’s educational plan.

- Teachers from public schools are not permitted to participate in the management or administration of paid tutoring outside schools but may teach at such centers.

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