Who Is Not Allowed to Register a Household Business in Vietnam?

Short answer: The law provides that certain persons may not register a household business, mainly those lacking full civil act capacity and those whose business rights are restricted (persons under criminal prosecution, serving prison sentences, or banned from business during the ban period, etc.). In addition, individuals who are already private enterprise owners or general partners may not simultaneously own a household business. The household business registration dossier is submitted to the commune-level business registration agency from 01/7/2025. Basis: Decree 168/2025/ND-CP, the Law on Enterprises 2020 (as amended by Law No. 76/2025/QH15).

Legal basis

• Law on Enterprises 2020, as amended by Law No. 76/2025/QH15 — Article 17 (rights to establish, contribute capital, purchase shares and manage enterprises);
• Decree 168/2025/ND-CP on enterprise registration (effective from 01/7/2025) — registration of household businesses;
• Civil Code 2015 — civil act capacity of individuals.

Persons not allowed to register a household business

1. Minors and persons lacking/limited in civil act capacity

Persons under 18 years old, or persons declared by the Court to lack or have limited civil act capacity, are not qualified to register a household business in their own name.

2. Persons under criminal prosecution or serving sentences

Persons under criminal prosecution, in custody, serving prison sentences, or subject to administrative handling measures at compulsory detoxification or compulsory education facilities may not register a household business.

3. Persons banned from business

Persons banned by the Court from practicing a profession, doing certain work, or holding positions under the Criminal Code — during the ban period — may not register a household business within the scope of the ban.

4. Cadres, civil servants and public employees where prohibited

Cadres and civil servants under the law on cadres and civil servants; officers, non-commissioned officers and professional soldiers in the Army and Police (except where assigned by a competent authority as representatives) may not establish or manage a household business. Public employees are subject to restrictions under the Law on Public Employees.

5. Persons already private enterprise owners or general partners

Individuals who are private enterprise owners or general partners of a partnership may not simultaneously own a household business.

6. Persons already owning another household business

Each individual may register only one household business nationwide; a person already owning a household business may not register a second one.

General conditions for registering a household business

• Not falling into the prohibited categories above;
• Business lines not on the prohibited list; conditional lines must meet all conditions when operating;
• The household business name complies with regulations (including the phrase “household business” + a proper name, not confusingly identical within the commune level);
• Having a definite business location; each household business may be situated at only one location.

Frequently asked questions

Can foreigners register a household business?

The law on household business registration mainly governs individuals who are Vietnamese citizens. Foreigners wishing to do business in Vietnam usually do so by establishing foreign-invested enterprises under the Law on Investment. Specific cases should be discussed with a lawyer.

Can retired civil servants register a household business?

Yes. Upon retirement, the individual is no longer an incumbent cadre or civil servant and is no longer subject to the above restrictions (except post-employment restrictions under anti-corruption regulations for certain special positions).

Can an LLC member register a household business?

Yes. The restriction only applies to private enterprise owners and general partners; LLC members and joint-stock company shareholders may still register a household business.

Notes on applying current legislation

Before submitting a dossier, individuals should self-check their subject qualifications; dishonest declarations to register may lead to revocation of the certificate and administrative penalties. Dossiers are now submitted to the commune-level business registration agency (no longer the district level from 01/7/2025). Contact ANT Legal lawyers at 0966.475.966 for advice.

Common risks to note

• Prohibited persons still registering in their own name — certificate revoked;
• Asking others to register on one’s behalf — disputes over assets and tax obligations;
• Registering business lines on the prohibited list;
• Duplicating or confusing household business names.

How can ANT Legal help?

ANT Legal advises on conditions and subject qualifications for household business registration; drafts dossiers and conducts registration, change and termination procedures; advises on converting household businesses into enterprises. For prompt advice, please contact our lawyers at 0966.475.966.

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• Procedures for registering a private enterprise in Vietnam
• Minimum capital for enterprise registration in Vietnam?
• Should you establish a company or a household business in Vietnam?
• Is a company that does not operate subject to penalties in Vietnam?
• Procedures for registering a private enterprise in Vietnam