Who is eligible to establish household businesses in Vietnam?

Who is eligible to establish household businesses in Vietnam? 

Pursuant to Article 80 of Decree 01/2021/ND-CP, 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 in Clause 1 of this Article 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.

Who is eligible to establish household businesses in Vietnam? (Internet image)

What are the procedures for household business registration in Vietnam?

Pursuant to Article 87 of Decree No. 01/2021/ND-CP, 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.

Mai Thanh Loi

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