Can an individual who does not have the right to establish a business household have their business household registration certificate revoked?

Can an individual who does not have the right to establish a business household have his/her business household registration certificate revoked?

Pursuant to Clause 5 Article 93 of Decree 01/2021/ND-CP Regulations on revocation of Business Household Registration Certificate are as follows:

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Revocation of Business Household Registration Certificate

5. In case a business household is established by people who do not have the right to establish a business household, then:
a) If the business household is established by an individual and that individual is not entitled to establish a business household, the district business registration authority shall issue a notice of violation and issue a decision to revoke the Business Household Registration Certificate;
b) If the business household is established by a member of the household and If there is a member who is not entitled to establish a business household, the district-level Business Registration Authority shall issue a notice requiring the business household to register a change to that individual within 15 working days from the date of notification. If past the above deadline, the business household does not register the change, the district business registration authority will issue a notice of violation and issue a decision to revoke the business household registration certificate.

Thus, in the case of an individual who does not have the right to establish a business household, if established, the business household registration certificate will be revoked because this is a violation according to the provisions of law.

How to name a business household to comply with regulations?

According to the provisions of Article 88 of Decree 01/2021/ND-CP Regulations on business households naming on the Business Registration Certificate, including:

– Business households have their own names. The business household name includes two elements in the following order:

+ The phrase “Business household”.

+ Personal name of business household.

Personal names are written with letters in the Vietnamese alphabet, the letters F, J, Z, W, and may be accompanied by numbers and symbols.

– Do not use words or symbols that violate the historical, cultural, ethical traditions and fine customs of the nation to name the business household.

– Business households are not allowed to use the terms “company” or “enterprise” to name the business household.

– The business household’s personal name must not be the same as the business household’s name registered within the district.

How much is the fine for a business that continues to operate after a request to temporarily suspend business operations?

Pursuant to Article 62 of Decree 122/2021/ND-CP regulations on handling violations of business household registration specifically 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 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.
2. Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:
a) Untruthful or inaccurate declaration of business household registration dossier or application dossier to change the content of business household registration.
In case of violation of tax law, it will be handled according to regulations on penalties for administrative violations. mainly in the tax field;
b) Continuing to conduct conditional business lines when there is a temporary suspension request from the district business registration authority.
3. Remedial measures:
a) Force registration of business household establishment according to regulations for violations specified in Point c, Clause 1 of this Article;
b) Forced registration to change the content of the Business Household Registration Certificate in case it has not been registered for violations specified in Point d, Clause 1 of this Article.

Thus, for business households that continue to operate after a request to temporarily suspend business operations with conditions will be fined from 10,000,000 to 20,000,000 VND according to the provisions of law.

Note: The above fines apply to individual violations.

Practical points to review

For the topic “Can an individual who does not have the right to establish a business household have their business household registration certificate revoked?”, readers should compare the legal rule with the actual documents, parties involved, timeline and evidence before choosing a course of action.

  • Identify the legal relationship, signing authority and documents creating rights or obligations.
  • Check deadlines, notices, payment records, approvals and evidence that may affect the legal position.
  • Assess whether negotiation, document correction, complaint, arbitration, court proceedings or another route is suitable.

Documents to prepare

  • Contracts, annexes, decisions, notices, emails, messages, payment records and handover/acceptance minutes where relevant.
  • Enterprise, asset, license or identity documents connected to the matter.
  • A short timeline of key events and the outcome expected from the review.

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