Currently, a lot of people and households with business plans choose the kind of business household to run. Since the state has made it simpler to complete the procedures, people can establish a business household in a more convenient way than other types of businesses. So, in this article, LSX legal firm will give you a guideline on: “Procedures for registration of business households in Vietnam”
Legal grounds
- Decree 01/2021/ND-CP
- Decree 78/2015/ND-CP
Individual Business Household
Under the Vietnamese legislation, business household owned by an individual, a group of individuals as Vietnamese citizens from 18 years of age or older, have the full civil capacity, or owned by a household may only register one business location, employs fewer than 10 employees, and take responsibility for the business operation 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.
Households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic businesspeople, and service providers earning low revenues not required to registered, except for conditional business lines. The People’s Committees of provinces shall specify the low revenues applied within their provinces.
Any business household that hires 10 employees or more must apply for enterprise registration as prescribed.
Characteristics of business households
- Firstly, individual business households do not have legal status and separate seals. However, if desired, the householder can still engrave his own seal with the name of the business household, the business household’s address, and the tax identification number.
- Secondly, household businesses usually do business on a small scale.
- Thirdly, individuals, groups of people, or members of a household have unlimited liability for 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. In case a group of people own a household, all members take unlimited liability for all debts of the business household.
- Fourthly, 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.
Conditions for registration of individual business households
Only business households that operate on a regular basis and have a stable professional scale have to register as a business household.
Households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic businesspeople, and service providers earning low revenues do not have to register, except for conditional business lines.
Currently, according to Clause 2, Article 71 of Decree 78/2015/ND-CP, the conditions for issuance of a certificate of registration for a business household include:
- The registered business lines do not belong to the prohibited list.
- The name of the business household conforms with Article 73 of this Decree;
- Pay the full fees and charges for registration.
Besides:
- The proper name of a business household must not coincide with the proper name of a business household registered within the district.
- Business households must not expand branches or other business locations in the nation.
Procedures for registration of business households in Vietnam
Step 1: Prepare dossiers for individual business household registration
- Firstly, the name, address, phone number, fax number, and email address (if any) of the business household.
- Secondly, business lines.
- Thirdly, the capital.
- Fourthly, the number of employees.
- Full names, signatures, residences, numbers, and dates of issue of unexpired ID cards or passports of individuals establishing the business household in case the business household established by a group of individuals.
- Full name, signature, residence, number, and date of issue of unexpired ID card or passport or of the individual in case the business household established by an individual.
- Full names, signatures, residences, numbers, and dates of issue of unexpired ID cards or passports of individuals or representatives of the household in case the business household is established by a household.
- Lastly, the application form must be enclosed with legitimate copies of the unexpired ID cards or passports of individuals in the business household or representative of the household, and a legitimate copy of the minutes of the meeting of the group of individuals on the establishment of the business household (in case the business household is established by a group of individuals).
Step 2: Submit your application
The person who registers the establishment of a business household shall submit a dossier to the Finance – Planning Department of the People’s Committee of the district where he/she intends to locate the business household.
In addition to the form of direct submission as above, citizens can carry out the procedures for registering individual business households online at the public service website of the Department of Planning and Investment of the province/city.
Step 3: Get the result
When receiving the application, the business registration authority of the district shall give a receipt to the applicant and issue the certificate of business household registration within 03 working days from the receipt of the application if the application satisfies the conditions to register a business household.
In contrast, within 03 working days from the receipt of the application, the business registration authority of the district shall inform the applicant of necessary revisions or supplementation if the application does not satisfy the conditions.
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
Business households, including those doing nomadic business, must select a fixed location to register the business household. This location may be the permanent or temporary residence, the most frequent business location, or the collecting station. Business households doing mobile business are entitled to do business outside the registered location. The registered location and the actual business locations must be notified to the tax authority and market surveillance authority.
When a business household shuts down its operation, it must send a notification and return the original certificate of business household registration to the business registration authority of the district where the business household was registered, settle all outstanding debts, including tax debts, and financial obligations.
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.
Contact LSX
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