Many individuals and households with business plans currently select the type of business household to operate. A business household is easier to establish than other types of businesses since the state has made it easier to complete the procedure. However, this kind of business still requires you to carry out certain procedures to obtain a certificate before operation. So, in this article, LSX legal firm provides: “Household business registration certificate in Vietnam”
Legal ground
- Decree 01/2021/ND-CP
Individual Business Household
Under the Vietnamese legislation, the household business means a type of business 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 presents as the owner of the household business.
The law does not require households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic or seasonal businesspeople, and service providers earning low revenues to apply for the establishment of household businesses, except for conditional business lines. The provincial People’s Committees shall specify the low revenues applied within their provinces.
Characteristics of business households
Firstly, a business household is headed by an individual, a group of people, or a household. For a business household owned by an individual, the owner has the right to decide all business activities. For household businesses owned by group members or household members, they shall appoint a representative to engage in external transactions.
Secondly, the business household has a small business scale: having one business location, employing no more than 10 employees. On the other hand, business households employing more than 10 employees must register to establish an enterprise according to regulations.
Thirdly, the business household takes unlimited liability in business operations. If the business assets are not enough to pay the debt; then the business household must take the assets not invested in the business household to repay at the time to pay due debts to creditors. If a household owned by a group of people, all members take unlimited liability for all debts of the business household.
Conditions for establishing a business household
- Owners as Vietnamese citizens 18 years old or more have the full legal capacity and civil act capacity.
- Business households must conduct business in industries and lines not prohibited by the law.
- Business households must prepare capital and assets because business households are established with the profession of doing business, so they must have initial assets to create physical foundations for business households to operate.
- Conditions for the proper name of a business household: the name of a business household consists of two elements:
- Type of business: “Household”
- The personal name of the business household.
Procedures for registration of business household
An application for household business registration includes:
- Firstly, the application form for household business registration;
- Secondly, legal documents of the owner of the household business or family household members applying for household business registration;
- Thirdly, the copy of the minutes of the meeting of family household members on establishment of household business in case the household business is established by family household members;
- Fourthly, 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 not satisfied, 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 can 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.
Certificate of household business registration
Certificates of household business registration issued to household businesses duly established and operating under Decree 01/2021/ND-CP. Conditions for the issuance of Business Household registration Certificate:
- Firstly, the registered business lines do not fall into the banned list.
- Secondly, the name of the household business conforms with regulations of Article 88 of Decree 01/2021/ND-CP.
- Thirdly, the application for household business registration valid.
- Fourthly, pay the full fees for household business registration.
Besides, information on the certificate of household business registration takes effect from its date of issue; the household business can 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 can do business from the registered date, except for conditional business lines.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
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Related questions
The business location of a household business is the place where specific business operations are carried out.
A household business may carry out business operations at multiple locations but must select a location as its headquarters and notify it to tax authorities and market surveillance authorities at places of other business locations.
Suspending a household business operation means a form of temporarily stopping the business operation of household business. When it wants to continue operating, the business household can announce its resumption of operation later. In case of business suspension for 30 days or more, business households must notify the business registration office of the district where they have registered their business and the tax agency directly managing them.
It isn’t. Business household does not have a seal, cannot open branches or representative offices, do not have the rights that enterprises have such as import-export activities or apply the Law on Bankruptcy when the business makes a loss.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Household business registration certificate in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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