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中文 (中国)When changing the business owner, the business household must notify is legal content that readers often need to check carefully before implementing it in practice. This article has been systematized by ANT Legal in an easy-to-understand way, helping individuals and businesses understand the main issues, common risks and appropriate solutions.
When changing the owner of a business household, within what time limit must the business household notify the Business Registration Authority?
The time limit for a business household to notify the Business Registration Authority when changing the business household owner is specified in Clause 1 Article 90 of Decree 01/2021/ND-CP is as follows:
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Registering changes to business household registration content
1. The business household owner is responsible for registering changes to the content of the Business Household Registration Certificate with the Business Registration Authority within 10 days from the date of change.
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According to the above regulations, when changing the owner of a business household, the business household must notify the Business Registration Authority within 10 days from the date of change.
What documents are included in the dossier for notification of change in business household owner?
According to Clause 3, Article 90 of Decree 01/2021/ND-CP, the dossier for notification of change in business household owner includes the following documents:
(1) Notification of change in business household owner by the old business household owner and the business household owner signed by the new business owner or signed by the new business household owner in case of change of business household owner due to inheritance.
(2) Sales contract or documents proving completion of the sale in case of selling a business household; Donation contract in case of donation to business households; Copy of document certifying the legal inheritance rights of the heir in case of changing the business household owner due to inheritance/
(3) Copy of the minutes of meeting of household members on changing the business household owner in case the household members register the business household/
(4) Copy of the authorization document of the household member for a member to be the business household owner in the case of Household members register their business.
Note: After selling, donating, or inheriting a business household, the business household is still responsible for the debts and other property obligations of the business household arising during the period before the transfer date of the business household, unless the business household, buyer, donor, heirs, and creditors of the business household have otherwise agreed.
If I change the owner of a business household but notify the Business Registration Authority on time, will the owner of the business household be fined?
The level of administrative penalties for business households that change business household owners but notify the Business Registration Authority on time is specified in Point d, Clause 1, Point b, Clause 3, Article 62 Decree 122/2021/ND-CP as follows:
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 allowed to establish business households but still establish business households;
c) Failure to register to establish a business household in cases where registration is required according to regulations;
d) Failure to 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.
2. Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:
a) Untruthful or inaccurate declaration in business household registration dossier or registration dossier to change the content of business household registration.
In case there is a violation of tax laws, it will be handled according to regulations on sanctioning administrative violations in the tax field;
b) Continue doing business in conditional business lines when there is a temporary suspension request from the district business registration authority.
3. Remedial measures:
a) Compulsory registration of establishment of business households according to regulations for violations specified in Point c, Clause 1 of this Article;
b) Force registration to change the content of the business household registration certificate in case of unregistered violations specified in Point d, Clause 1 of this Article.
According to Clause 2, Article 4, Decree 122/2021/ND-CP stipulates the fine levels as follows:
Fine level
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2. The fines specified in this Decree are the fines applicable to organizations (except the fines specified in Point c, Clause 2, Article 28; Points a and b, Clause 2, Article 38; Article 62 and Article 63 of this Decree, which are fines applicable to individuals). For the same administrative violation, the fine for individuals is equal to 1/2 (one-half) of the fine for organizations.
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Thus, a business household that changes the owner of the business household but notifies the Business Registration Authority within the prescribed time limit may be subject to administrative sanctions with a fine from 5,000,000 VND to 10,000,000 VND.
At the same time, business households are also forced to register to change the content of the Business Household Registration Certificate in case they have not yet registered.
Note on Applying Current Legal Regulations
This article belongs to the Business & M&A group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.
Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.
Common Legal Risks to Note
- Applying legal instruments that have been amended, supplemented or replaced.
- Preparing an incomplete set of documents, materials or necessary evidence.
- Misunderstanding the conditions, procedure, timeline or competent authority.
- Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.
How Can ANT Legal Support You?
ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.
For prompt advice, you may contact a lawyer at 0966.475.966.
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