Who has the rights to establish household businesses in Vietnam?

Who has the rights to establish household businesses in Vietnam? (Internet image)

1. What is a household business?

- 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.

(Article 79 of Decree 01/2021/ND-CP)

2. Who has the rights to establish household businesses in Vietnam?

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.

Note:

- Each individual or family household member mentioned in Clause 1 of Article 80 of Decree 01/2021/ND-CP 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.

(Article 80 of Decree 01/2021/ND-CP)

3. Certificate of household business registration in Vietnam

- Certificates of household business registration shall be issued to household businesses that are duly established and operating under this Decree. A household business shall be issued with the certificate of household business registration if all of the following conditions are satisfied:

+ The registered business lines are not banned;

+ The name of the household business is conformable with regulations of Article 88 hereof;

+ The application for household business registration is valid;

+ Fees for household business registration are fully paid.

- The certificate of household business registration is issued according to information in the application for household business registration, which is provided by the household business founder.

- Information on the certificate of household business registration is effective from its date of issue; the household business is entitled to do business from the date of issue of the certificate of household business registration, except for conditional business lines.

In case the household business registers the date of commencement of business after the date of issue of the certificate of household business registration, the household business is entitled to do business from the registered date, except for conditional business lines.

- Every household business may receive the certificate of household business registration directly at the office of the district-level business registration authority or pay fees to receive it by post.

- The household business is entitled to request the district-level business registration authority to provide copies of the certificate of household business registration and pay fees for them.

(Article 82 of Decree 01/2021/ND-CP)

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