Regulations on business lines of household businesses in Vietnam

What are the regulations on business lines of household businesses in Vietnam? - Hoang Khai (Hanoi)

General regulations on household businesses in Vietnam

Pursuant to Article 79 of Decree 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.

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.

Regulations on business lines of household businesses in Vietnam

Regulations on business lines of household businesses in Vietnam (Internet image)

Regulations on business lines of household businesses in Vietnam

Pursuant to Article 89 of Decree 01/2021/ND-CP, the regulations on business lines of household businesses 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.

Rights and obligations of owners of household businesses in Vietnam

Pursuant to Article 81 of Decree 01/2021/ND-CP, rights and obligations of owners of household businesses and family household members applying for household business registration are as follows:

- 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.

- 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.

- 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.

- The owner and other family household members applying for household business registration shall be liable for all business operations of the household business.

- They shall perform other rights and obligations as prescribed by law.

Mai Thanh Loi

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