Conditions for registration of household business 2022 in Vietnam

Household business can be considered as the simplest type of business of all types. Because the process of setting up a self-employed business is very simple. Business households have no legal status and are solely responsible for their own operations. Home business is one of the most popular business types in Vietnam today. So what are the conditions for registering a household business? Let’s find out with Lawyer X

Legal grounds

Enterprise Law 2020

What is a family business?

Household business, also known as Household business. Currently, the law does not have any definition of household business.

But in Clause 1, Article 79 of Decree No. 01/2021/ND-CP, it is stated: “Household business is registered to establish by an individual or members of the household and is responsible with all his/her assets for with household business”.

According to Clause 1, Article 79 of Decree 01/2021/ND-CP, the owner of a business household is one of the following subjects:

– Individuals register business households;

– Person authorized by household members to act as business household representative in case household members register business household.

So to register a business household, the business household registrant must:

• Being a Vietnamese Citizen
• Enough 18-years old
• Have full civil action
• Household owner
• Be responsible with all your assets for business activities

Conditions for household business registration

According to the law, the conditions for household business registration are as follows:

• The line of business you want to do business is not in the list of industries prohibited from doing business by the state.
• The name of the business household must include its own name and business household. In which the proper name must not use any symbols or words that violate the culture, history, fine customs and traditions.
• Fees need to be paid in accordance with regulations, the current business registration fee is 100,000 VND/time.

As follows:

Name the business household

The household business has its own name. The name of a business household consists of two elements in the following order: The phrase “Household business” and the proper name of the business household. The proper name is written with the letters of the Vietnamese alphabet, the letters F, J, Z, W, may be accompanied by numbers and symbols.

The name of the business household must not use words or symbols that violate the historical, cultural, ethical and fine traditions of the nation to name the business household.

Business households are not allowed to use the terms “company”, or “enterprise” to name the business household.

The proper name of a business household must not coincide with the proper name of a business household registered within the district, and the proper name of a business household must not infringe on a well-known trademark, trademark or geographical indication protected at the district level. Vietnam.

Business lines of business households

When registering for the establishment, or registering for change in business household registration information, the business household must write the business lines on the Application for business household registration, and the Notice of changes in the business household registration information. The business registration authority of the district shall record information about business lines on the Certificate of Business Household Registration.
Business households are entitled to conduct conditional business lines from the time they fully meet the conditions prescribed by law and must ensure that they are satisfied throughout the course of operation. The state management of business lines subject to conditions of investment and business and inspection of the observance of business conditions by business households falls under the competence of specialized agencies in accordance with specialized laws.

In case the business registration office of the district receives a document from a competent authority that the household business is in a conditional business line, but does not fully satisfy the conditions as prescribed by law. The business registration authority of the district shall issue a notice requesting the business household to suspend its conditional business lines, and at the same time notify the competent state agency for handling according to regulations. under the law.

Registration process for setting up a family business

To register a business household, follow these steps:

Step 1: Prepare documents.

Records include:

• Application for registration of household business. In it, the content includes:

Name of business household/address of business location
Business
Amount of business capital
Number of employees;
Full name, signature, residential address, number and date of issue of your valid Citizen ID Card or Identity Card or Passport.
A valid copy of your valid National Identity Card or National Identity Card or Passport.
In addition, you should also note the following:

• For occupations requiring a practicing certificate, together with the above-mentioned papers, a valid copy of your practicing certificate is also required

• For professions requiring legal capital, the documents specified above must be accompanied by a valid copy of the written certification of legal capital of a competent agency or organization.
• For business lines with conditions on security and order (pawn service, karaoke business, massage services, accommodation rental), the above documents must be certified of the local government regarding the place of business.

Step 2: Submit your application at the business registration office

Specifically, the Finance and Planning Department under the district-level People’s Committee. Upon receipt of the application, if the application is found to be satisfactory, the district-level business registration agency shall issue a receipt.

Step 3: Get a business household registration certificate.

Within 03 working days from the date of receipt of the application, the business registration authority will issue a business household registration certificate to you if the following conditions are fully satisfied:

• Business lines and trades not on the list of business lines and trades banned from business;
• The name of the business household to be registered.
• Pay the registration fee in full as prescribed.

Processing time: In addition, in case the application is not valid, within 03 working days from the date of receipt of the application, the business registration office of the district must clearly notify the contents to be amended. written supplement for you.

If after 03 working days, from the date of submitting the business household registration application, the business household registration certificate is not received or the notice requesting amendment and supplementation of the business household registration dossier is not received. then you have the right to complain according to the provisions of the law on complaints and denunciations.

Where to submit the application: After preparing the above-mentioned documents, the individual or the representative of the household shall submit it at the district-level business registration office where the business household is located. Specifically, submit at the One-Stop-Shop (public service department) of the district-level People’s Committee where the business household is located

How to register for business household tax?

Depending on the locality, tax officers will come to the place to carry out tax registration. Prepare 2 copies of business household + ID card of business household owner.

License tax for business households is specified in Clause 3, Article 1 of Circular 65/2020/TT-BTC

In addition, individual business households also have to pay personal income tax and value added tax if the turnover in a year is 100 million VND or more. Value added tax and personal income tax rates are calculated corresponding to the business lines of the business household.

Related article

• Procedures for selling apartments to foreigners in Vietnam
• Procedures for revocation of business registration certificate in Vietnam
• Procedures for changing business lines online according to Vietnamese law

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