Recently, LSX legal firm has received a question from our customer: “I am currently the owner of a fabric and garment factory at home. Now that I want to expand my business, I have heard about the form of business household but I still have many questions about this form as well as what the regulations of the law about this business form”. So, in this article, we will guide you with: “Where to register tax for individual business household in Vietnam?”
Legal ground
- Decree 01/2021/ND-CP
Business household under Vietnamese legislation
Article 79 of Decree No. 01/2021/ND-CP stipulates business households as follows:
“1. 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 the establishment of household businesses, except for conditional business lines. The provincial People’s Committees shall specify the low revenues applied within their provinces.”
On the other hand, the Law on Enterprise 2020 does not regulate business households. Business households and enterprises are both considered as economic organizations, carrying out commercial activities, but business households are not a type of enterprise.
Subjects allowed to register a business household
Any individual or family household member as a Vietnamese citizen and has the full legal capacity as prescribed in the Civil Code shall have the right to establish household businesses, except for the following cases:
- Minors; people with limited legal capacity; incapacitated people; people having difficulties in controlling their behaviors;
- People facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, or 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 above may register only one household business nationwide and has the right 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, or general partner of a partnership unless otherwise agreed by the other general partners.
Where to register for individual business household in Vietnam?
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 the business household located.
Additionally, citizens can carry out the procedures for registering individual business households online at the public service page of the Department of Planning and Investment of the province/city.
In the case of authorizing an individual to carry out business registration procedures, the enterprise registration dossier must contain a written authorization for the individual to carry out procedures related to business registration and a copy of legal papers of the authorized individual.
In case of authorizing an organization to carry out business registration procedures, the enterprise registration dossier must enclosed with a copy of the service provision contract with the service organization performing procedures related to business registration; the recommendation letter of that organization for the individual who directly carries out procedures related to business registration and a copy of the legal papers of that individual.
Dossier for household business registration
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 the meeting of family household members on establishment of household business in case the household business 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 established by family household members.
Procedures for registration of business households in Vietnam
Step 1: Prepare dossiers for individual business household registration, in details:
- 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 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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Where to register for individual business household in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
The current law does not limit the number of business lines that a business household can register. Business households can register many industries and occupations. However, they must have the approval of the business registration authority for those business lines.
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.
Firstly, business in narcotic substances specified in Appendix I of the Law on Investment 2020.
Secondly, business in chemicals and minerals specified in Appendix I of the Law on Investment 2020.
Thirdly, business in specimens of wild flora and fauna specified in Appendix I of Convention on International Trade in Endangered Species of Wild Fauna and Flora, specimens of rare and/or endangered species of wild fauna and flora in Group I of Appendix III of the Law on Investment 2020.
Fourthly, prostitution business.
Fifthly, human trafficking; trade in human tissues, corpses, human organs and human fetuses.
Sixthly, business activities pertaining to asexual human reproduction.
Also, trade in firecrackers.
Lastly, provision of debt collection services.
Conclusion: So the above is Where to register for individual business household in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
