onditions for issuance of certificate of household business registration in Vietnam

Conditions for issuance of certificate of household business registration in Vietnam (Internet image)

1. Latest regulations on household businesses in Vietnam

Article 79 of Decree 01/2021/ND-CP stipulates household businesses in Vietnam as follows:

- A household business is registered by an individual or household members who are responsible with their entire assets for the business activities. If household members register a household business, they authorize one member to be the representative of the household business. The individual registering the household business, or the authorized member representing the household business, is the head of the household business.

- Households engaged in agriculture, forestry, aquaculture, salt production, street vending, petty trading, itinerant trading, mobile business activities, seasonal business activities and low-income service activities do not need to register a household business unless operating in business lines that require conditional investment. The Provincial People's Committee sets the low-income threshold applicable locally.

2. Rights to establish household businesses and obligations to apply for household business registration in Vietnam

Article 80 of Decree 01/2021/ND-CP stipulates the right to establish a household business and the obligation to register a household business as follows:

- Individuals, household members who are Vietnamese citizens with full civil act capacity as stipulated in the Civil Code 2015 have the right to establish a household business as per Chapter VIII of Decree 01/2021/ND-CP, except for the following cases:

+ Minors, individuals with restricted civil act capacity, those incapacitated or having difficulties in cognition and behavior control;

+ Individuals being prosecuted, incarcerated, serving prison sentences, undergoing mandatory rehabilitation or education, or being banned from holding certain positions or practicing certain professions by the Court;

+ Other cases as stipulated by relevant laws.

- Individuals, household members specified in Clause 1, Article 80 of Decree 01/2021/ND-CP are permitted to register only one household business nationwide and may contribute capital, buy shares, or purchase contributed capital in enterprises as individuals.

- Individuals or household members registering a household business cannot simultaneously be the owner of a private enterprise or a general partner of a partnership company unless agreed upon by other general partners.

3. Newest conditions for issuance of certificate of household business registration in Vietnam

Clause 1, Article 82 of Decree 01/2021/ND-CP states that a certificate of household business registration is issued to household businesses established and operating under Decree 01/2021/ND-CP. The criteria for issuance of the certificate of household business registration in Vietnam are as follows:

- The registered business lines must not be prohibited from business investment;

- The name of the household business must comply with Article 88 of Decree 01/2021/ND-CP as follows:

+ The household business must have a unique name consisting of two parts:++ The phrase “Household Business”;++ The unique name of the household business.

The unique name is written in Vietnamese alphabet letters, F, J, Z, W, and may include numbers and symbols.

+ The name cannot use words or symbols that violate national historical, cultural, ethical, and traditional customs.

+ The name cannot include terms such as "company" or "enterprise."

+ The unique name must not be identical to the name of another registered household business in the same district.

- A valid household business registration dossier is required;

- Payment of registration fees as stipulated.

4. Guidelines for issuance of certificate of household business registration in Vietnam

Article 87 of Decree 01/2021/ND-CP guides the issuance of certificate of household business registration in Vietnam as follows:

- Household business registration is conducted at the District Business Registration Office where the business headquarters is located.

- The household business registration dossier includes:

+ An application for household business registration;

+ Legal documents of individuals registering a household business, or household members in case of a jointly registered household business;

+ A copy of the household members' meeting minutes on the establishment of a household business in case of a jointly registered household business;

+ A copy of the authorization letter from household members to one member becoming the head of the household business in case of a jointly registered household business.

- Upon receiving the dossier, the District Business Registration Office issues a Receipt Note and grants the certificate of household business registration within 03 working days from the receipt of a valid dossier.

In case of an invalid dossier, within 03 working days from receipt, the District Business Registration Office must provide written notification specifying reasons and requesting amendments or additional documents (if any).

- If, after 03 working days from filing, no certificate of household business registration or notification of required amendments or documents is received, the founder or the household business has the right to file complaints and accusations as per the laws on complaints and accusations.

- Periodically, in the first working week of each month, the District Business Registration Office sends a list of previously registered household businesses to the same-level Tax Office, the Business Registration Office, and the specialized management agency at the provincial level.

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