Decree No. 01/2021/NĐ-CP on enterprise registration issued by the Government of Vietnam, takes effect from January 04, 2021. According to this Decree, seasonal businesspeople are not required to apply for establishment of household businesses.
Article table of contents
Specifically, according to Clause 2 Article 79 of the Decree No. 01/2021/ND-CP of the Vietnam Government, 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.
Previously, according to Clause 2 Article 66 of the Decree No. 78/2015/NĐ-CP, households engaged in agriculture, forestry, aquaculture, salt productions, street vendors, nomadic businesspeople, and service providers earning low revenues are not required to registered, except for conditional business lines. The People’s Committees of provinces shall specify the low revenues applied within their provinces.
It can be seen that the Decree No. 01/2021/ND-CP has supplemented seasonal businesspeople as an entity not eligible to household business registration, except for conditional business lines.
According to Clause 1 Article 79 of the Decree No. 01/2021/ND-CP, 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.
Besides, the Decree No. 01/2021/ND-CP also supplemented cases where business household registration is not allowed in Clause 1 Article 80. Specifically, any individual or family household member that is a Vietnamese citizen and has full legal capacity as prescribed in the Civil Code of Vietnam shall have the right to establish household businesses, except the following cases:
- Minors; people with limited legal capacity; incapacitated people; people having difficulties in controlling their behaviors;
- 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;
- Other cases prescribed by relevant laws.
In comparison with this issue prescribed in Clause 1 Article 67 of the Decree No. 78/2015/NĐ-CP, the old Decree just stipulated that every Vietnamese citizen from 18 years of age or over, has full legal and civil capacity, every household is entitled to establish business households and has the responsibility to register business households.
Therefore, the Decree No. 01/2021/ND-CP of the Government of Vietnam has supplemented cases not allowed to register for household business from January 04, 2021.
Thuy Tram
- Key word:
- Decree No. 01/2021/ND-CP
