Cases of not being required to apply for establishment of household businesses in Vietnam

Cases of not being required to apply for establishment of household businesses in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Cases of not being required to apply for establishment of household businesses in Vietnam

Specifically, Clause 2, Article 79 of Decree 01/2021/ND-CP stipulates that 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. Procedures for household business registration in Vietnam

Pursuant to Article 87 of Decree 01/2021/ND-CP, procedures for household business registration in Vietnam are as follows:

- The household business registration shall be carried out at the business registration authority of district where the household business is headquartered.

- An application for household business registration includes:

+ The application form for household business registration;

+ Legal documents of the owner of the household business or family household members applying for household business registration;

+ The copy of the minutes of meeting of family household members on establishment of household business in case the household business is established by family household members;

+ The copy of the letter of authorization made by the family household members to authorize a person to act as the owner of the household business in case the household business is established by family household members.

- When receiving the application, the district-level business registration authority shall give a confirmation slip and issue the certificate of household business registration to the household business within 03 working days from the receipt of the valid application.

If the application is not satisfactory, within 03 working days from the receipt of the application, the district-level business registration authority shall give a written notification to the applicant or the household business founder. Such notification must specify necessary revisions (if any).

- After 03 working days from the date of submission of the application for household business registration, if neither the certificate of household business registration is issued nor the notification of necessary revisions is given, the household business or its founder is entitled to lodge a complaint or denunciation in accordance with regulations of the Law on complaints and denunciation.

- In the first week of every month, the district-level business registration authority shall send a list of household businesses registered in the previous month to the tax authority of the same district, the Business Registration Office, and regulatory agencies of the province.

3. Business lines of a household business in Vietnam

According to Article 89 of Decree 01/2021/ND-CP, regulations on business lines of a household business are as follows:

- When applying for registration of a new household business, the household business shall write the business lines on the application form for household business registration or notification of changes to household business registration information. The district-level business registration authority shall write the business lines on the certificate of household business registration.

- A household business are entitled to engage in conditional business lines from the day on which all business conditions are fulfilled and must maintain the fulfillment of such conditions throughout its operation. Specialized agencies are in charge of management and inspection of conditional business lines and fulfillment of conditions.

- In case the district-level business registration authority receives a notification from a competent authority that the household business engages in conditional business lines without satisfying all conditions, the district-level business registration authority shall request the household business to stop engaging in the conditional business lines and notify a competent authority to handle the case in accordance with regulations of law.

Ho Quoc Tuan

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