Do all professions require business registration?

Do all professions require business registration?

It can be understood that business is one of the diverse professions on the market. Business entities are individuals, organizations, households, etc. They can be called traders.

According to Article 6 of the 2005 Commercial Law stipulates that traders are legally established economic organizations, individuals who conduct commercial activities independently, regularly and have business registration.

Have the right to conduct commercial activities in industries, in areas, in forms and by methods that are not prohibited by law and are protected by the State.

At the same time, when doing business, traders must have the obligation to register their business according to regulations. provisions of the law. In case of unregistered business, traders must still be responsible for all their activities according to the provisions of this Law and other provisions of law (according to Article 7 of the 2005 Commercial Law).

However, not all business entities are considered traders and are also required to register their business. business.

According to Article 3 Decree 39/2007/ND-CP regulations on a number of professions in cases where business registration is not required as follows:

Explanation of terms
In this Decree, some terms are understood as follows:

1. A commercial individual is an individual who daily carries out one, several or all of the activities permitted by law in terms of buying and selling goods, providing services and other profitable activities but is not subject to business registration according to the provisions of the law on business registration and is not called a “trader” according to the provisions of the Commercial Law. Specifically, this includes individuals performing the following commercial activities:
a) Street trading (street trading) is buying and selling activities without a fixed location (street shopping, peddling or both street buying and peddling), including receiving books, magazines, and cultural products from traders who are allowed to sell these products according to the law for peddling;
b) Petty trading is the activity of buying and selling small items with or without a fixed location;
c) Selling snacks is the activity of selling gifts, cakes, food, drinks (water goods) with or without a fixed location;
d) Trading is the activity of buying goods from other places on each trip to sell to wholesalers or retailers;
dd) Providing services: shining shoes, selling lottery tickets, lock repair, car repair, car care, car washing, hair cutting, painting, photography and other services with or without a fixed location;
e) Independent, regular commercial activities without other business registration.
2. Mobile business is commercial activities that do not have a fixed location.
From the above regulations, it can be seen that for some cases such as: street trading, petty trading, independent and regular commercial activities,… business registration is not required according to the provisions of law

Therefore, it can be affirmed that not all professions are required to have business registration. according to the provisions of law.

In what cases are individuals not allowed to register business households?

According to Article 80 of Decree 01/2021/ND-CP, there are regulations on the right to establish business households and the obligation to register business households as follows:

The right to establish business households and the obligation to register business households business
1. Individuals and household members who are Vietnamese citizens with full civil act capacity according to the provisions of the Civil Code have the right to establish business households according to the provisions of this Chapter, except for the following cases:
a) Minors, people with limited civil act capacity; people who have lost their civil act capacity; people with difficulties in cognition and behavior control;
b) People who are being prosecuted for criminal liability, detained, serving a prison sentence, serving administrative measures at a mandatory drug treatment facility, a compulsory education facility, or are being banned by the Court from holding a position, practicing a profession or doing certain jobs;
c) Other cases as prescribed by relevant laws.
…

Thus, individuals are not allowed to register to establish business households in the following cases:

– Minors, people with limited civil act capacity; People who have lost their civil act capacity;

– People who have difficulty in cognition and behavior control;

– People who are being prosecuted for criminal liability, detained, or are serving prison sentences;

– People who are serving administrative measures at compulsory drug treatment facilities, compulsory education establishments, or are banned from holding positions by the Court Services, ban on practicing certain professions or doing certain jobs;

– Other cases according to relevant provisions of law.

How much is the fine for an individual who is not allowed to establish a business household but still does so? Pursuant to Article 62 of Decree 122/2021/ND-CP stipulating the handling of violations of specific business household registration such as following:

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) Failure to register changes to the content of the Business Household Registration Certificate with the district-level business registration authority within 10 days from the date of change.
…
Thus, in cases where an individual does not have the right to establish a business household but still does so, a fine of from 5,000,000 will be imposed. up to 10,000,000 VND depending on the severity of the case.

Note: The fine for this violation is personal. For organizations that commit the same violation, the fine will be twice that of an individual (According to Clause 2, Article 4, Decree 122/2021/ND-CP).