What is the economic industry code for motorbike rental without a driver? Does a motorbike rental service business have to be registered as a business?

What is the economic sector code for motorbike rental without a driver?

Pursuant to STT 77 Part N Section II Appendix II – Contents of Vietnam’s Economic Sector System issued with Decision 27/2018/QD-TTg:

77: MACHINERY AND EQUIPMENT RENTAL (EXCLUSIVE OF OPERATOR); RENTAL OF PERSONAL AND HOUSEHOLD ITEMS; LEASES OF NON-FINANCIAL INTANGIBLE ASSETS

This industry includes: The leasing of tangible and intangible non-financial assets, including a range of tangible goods, such as automobiles, computers, consumer goods, industrial machinery and equipment, to customers on periodic or long-term leases.

This industry also includes:

– Motor vehicle rental;

– Rental of entertainment and sports equipment, personal and family equipment;

– Rental of machinery and equipment used for business activities, including other transportation equipment;

– Leasing non-financial intangible assets;

Exclusions:

– Financial leasing is classified in group 64910 (Financial leasing activities);

– Real estate leasing is classified in sector L (Real estate business activities);

– Rental of equipment with operators, see the corresponding group related to activities with equipment classified in sector F (Construction), sector H (Transportation).

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773 – 7730: Rental of machinery, equipment and other tangible items without operator

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77309: Rental of machinery, equipment and other tangible goods without operator not elsewhere classified

This group includes:

– Rental without operator, equipment and other tangible items commonly used as goods in business:

+ Engine,

+ Machine tools,

+ Mining and oil exploration equipment,

+ Professional radio, television and communication equipment,

+ Cinema production equipment,

+ Measurement and control equipment,

+ Other industrial, commercial and scientific machinery;

– Rental of road transport equipment (except motor vehicles) without operator:

+ Motorcycles, mobile vehicles, camping…,

+ Train engines;

This group also includes:

– Rental container;

– Pallet rental;

– Animal rental (such as pets, racehorses).

At the same time, according to the provisions of subsection 3.31, Section 3, National Technical Regulations QCVN 41:2019/BGTVT on Road Signs issued with Circular 54/2019/TT-BGTVT:

3.31. Motorcycles (also known as motorbikes) means a two- or three-wheeled motor vehicle and similar vehicles, moving by an engine with a cylinder capacity of 50 cm3 or more, with a weight of not more than 400 kg.

Thus, motorbike rental without a driver has the economic sector code 77309.

Is motorbike rental service business without a driver required to register as a business household?

Pursuant to Article 79 of Decree 01/2021/ND-CP on business households

Business households

1. A business household is established by an individual or household members who are responsible for all their assets for the business activities of the household. In case household members register a business household, one member shall be authorized to act as the business representative. The individual registering the business household, the person authorized by household members to act as the business household representative, is the business household owner.

2. Households engaged in agricultural, forestry, fishery production, salt making, and those selling street food, snacks, traveling, mobile businesses, seasonal businesses, and low-income services do not have to register as business households, except in the case of doing business in conditional business investment sectors. The People’s Committees of provinces and centrally run cities regulate low income levels applicable locally.

Thus, motorbike rental service business without a driver is not exempt from household business registration.

Therefore, when running a motorbike rental service without a driver, you must register your business.

How much is the fine for an individual who operates a motorbike rental service without a driver and does not register to establish a business household?

Pursuant to Clause 1, Article 62 of Decree 122/2021/ND-CP for violating business household registration:

Violation of business household registration

1. Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Individuals and household members registering more than one business household;

b) Not having the right to establish a business household but still establishing a business household;

c) Failure to register Register to establish a business household in cases where registration is required according to regulations;

d) Do not register changes to the content of the Business Household Registration Certificate with the district business registration authority within 10 days from the date of change.

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3. Remedial measures:

a) Force registration of business household registration according to regulations for violations specified in Point c, Clause 1 of this Article;

b) Force registration to change the content of Business Household Registration Certificate in case of unregistered behavior for violations specified in Point d, Clause 1 of this Article.

Save note: According to the provisions of Clause 2, Article 4 of Decree 122/2021/ND-CP, the above fine is the fine for individuals.

Thus, individuals running motorbike rental services without a driver who do not register to establish a business household may be fined from 5,000,000 VND to 10,000,000 VND.

At the same time, this individual is required to register to establish a business household according to regulations.