How many business households can an individual register?

Household businesses are an indispensable form of business in the market economy. Although not considered one of the types of businesses, this Household Business is still a popular form chosen by many people because of the advantages it brings. This article shares in detail the legal regulations surrounding the topic of Business Households according to current law. 

CSPL:  Article 79, 80, 81 Decree 01/2021/ND-CP

            Article 62 Decree 122/2021/ND-CP 

1. What is a business household?

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

– The right to establish a business household and the obligation to register a business household

+ 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 a business household, except in the following cases here:

• Minors, people with limited civil capacity; people who have lost their civil act capacity; People with difficulties in cognition and behavior control;
• People who are being prosecuted for criminal liability, detained, serving prison sentences, serving administrative measures at compulsory drug treatment facilities, compulsory education establishments, or are banned by the Court from holding positions, practicing certain professions or doing certain jobs;
• Other cases as prescribed by relevant laws agency.

+ Individuals and household members registering a business household cannot simultaneously be the owner of a private enterprise or a general partner of a partnership unless otherwise agreed by the remaining partners.

– Rights and obligations of business household owners and household members participating in business household registration

+ The business household owner performs tax obligations, financial obligations and business activities of the business household according to the provisions of law.

+ The business household owner represents the business household as a requester to resolve civil matters, plaintiff, defendant, person with related rights and obligations before the Arbitrator, Court and other rights and obligations according to the provisions of law.

+ The business household owner can hire others to manage and operate the business household’s business activities. In this case, the business household owner and household members participating in business household registration are still responsible for debts and other property obligations arising from business activities.

+ The business household owner and household members participating in household business registration are responsible for the business activities of the business household.

+ Other rights and obligations according to the provisions of law.

2. How many business households can an individual register?

– According to Clause 2, Article 80, Decree 01/2021/ND-CP stipulates the right to establish business households and the obligation to register business households as follows:

“Article 80. Right to establish business households and obligation to register business households

…..

2. Individuals and household members specified in (1)Only one business household can be registered nationwideand have the right to contribute capital, buy shares, and purchase capital contributions in the enterprise as an individual.”

Conclude:Comparing with the above regulations, each individual and household member can only register one business household nationwide.

3. Handling violations of business household registration

According to the provisions of Article 62 of Decree 122/2021/ND-CP regulating penalties for administrative violations in the field of planning and investment:

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

+ Individuals and household members registering more than one business household;

+ Not allowed to establish business households but still establish business households;

+ Do not register to establish a business household in cases where registration is required according to regulations;

+ Failure to register changes in the content of the Business Household Registration Certificate with the district business registration authority within 10 days from the date of change.

– Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

+ Declaring 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, handle it according to regulations on sanctioning administrative violations in the tax field;

+ Continue doing business in conditional business lines when there is a request to temporarily stop it from the district business registration authority.