What are the fines for not carry out household business registration in Vietnam?

 What are the fines for not carry out household business registration in Vietnam? (Internet image)

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

1. Who has the right to establish household business in Vietnam?

According to Article 80 of Decree 01/2021/ND-CP, rights to establish household businesses and obligations to apply for household business registration are as follows:

- Any individual or family household member that is a Vietnamese citizen and has full legal capacity as prescribed in the Civil Code shall have the right to establish household businesses in accordance with this Chapter, 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.

- Each individual or family household member mentioned above may register only one household business nationwide, and is entitled to contribute capital to and buy shares/stakes of other enterprises as an individual.

- Individuals and family household members that apply for household business registration must not concurrently hold the position of sole proprietor, general partner of a partnership, unless otherwise agreed by the other general partners.

2. What are the fines for not carry out household business registration in Vietnam?

Article 62 of Decree 122/2021/ND-CP stipulates the level of penalties for violations of business household registration as follows:

-  A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed:

+ Upon any individual or member of a household registering more than one household business; or

+ For establishing a household business despite not having the right to establish household businesses; or

+ For failure to apply for household business registration where the registration is compulsory as prescribed; or

+ For failure to apply for registration of changes to the certificate of household business registration with the district-level business registration authority within 10 days from the occurrence of such changes.

- A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for any of the following violations:

+ Providing untruthful, inaccurate information in an application for household business registration or application for changes to household business registration information.

In the case of a tax offence, fines therefor shall be imposed according to regulations on penalties for administrative tax offences;

+ Carrying on a conditional business line after a suspension has been requested by the district-level business registration authority;

- Remedial measures: The violator is compelled to:

+ Apply for household business registration as prescribed for failure to apply for household business registration where the registration is compulsory as prescribed;

+ Apply for registration of changes to the certificate of household business registration in case of failure to apply for registration for failure to apply for registration of changes to the certificate of household business registration with the district-level business registration authority within 10 days from the occurrence of such changes.

Note: Penalties for cases of not registering business households according to regulations applicable to individuals. The fine for organizations is 2 times the fine for individuals (Clause 2, Article 4, Decree 122/2021/ND-CP).

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE