Rights and Obligations of Household Business Owners and Participating Household Members

May a company owner establish an additional household business? How are the rights and obligations of the household business owner and household members participating in the household business registration regulated?

1. What is a household business?

Under Article 79 of Decree 168/2025/ND-CP, a household business is regulated as follows:

“Article 79. Household businesses

1. A household business is registered and established by one individual or household members and is liable for its business activities with all of their assets. Where household members register a household business, they shall authorize one member to be the representative of the household business. The individual registering the household business or the person authorized by household members to be the representative of the household business is the household business owner.

2. Households engaged in agricultural, forestry or fishery production, salt making, and itinerant vendors, snack sellers, traveling traders, mobile businesses, seasonal businesses, and low-income service providers are not required to register a household business, except when conducting conditional investment business lines. The People’s Committees of provinces and centrally-run cities shall prescribe the low-income threshold applicable within their localities.”

Accordingly, a household business is registered and established by one individual or household members and is liable for its business activities with all of their assets. Where household members register a household business, they shall authorize one member to be the representative of the household business. The individual registering the household business or the person authorized by household members to be the representative of the household business is the household business owner.

2. May a company owner establish an additional household business?

Under Article 80 of Decree 168/2025/ND-CP, the right to establish a household business and the obligation to register a household business are regulated as follows:

“Article 80. Right to establish a household business and obligation to register a household business

1. Individuals and household members who are Vietnamese citizens with full civil act capacity under the Civil Code have the right to establish a household business under this Chapter, except for the following cases:

a) Minors, persons with limited civil act capacity; persons who have lost civil act capacity; persons with difficulties in cognition and behavior control;

b) Persons being prosecuted for criminal liability, in temporary detention, serving prison sentences, serving administrative handling measures at compulsory detoxification facilities or compulsory education facilities, or being prohibited by a Court from holding positions, practicing a profession or performing certain work;

c) Other cases as prescribed by relevant laws.

2. Individuals and household members specified in Clause 1 of this Article may register only one household business nationwide and may contribute capital, purchase shares or purchase capital contributions in enterprises as individuals.

3. Individuals and household members registering a household business may not concurrently be a sole proprietorship owner or a general partner of a partnership, except with the consent of the remaining general partners.”

Accordingly, individuals and household members registering a household business may not concurrently be a sole proprietorship owner or a general partner of a partnership, except with the consent of the remaining general partners. Thus, if you are a sole proprietorship owner or a general partner of a partnership, you may not concurrently be a household business owner.

3. How are the rights and obligations of the household business owner and household members participating in the household business registration regulated?

Under Article 81 of Decree 168/2025/ND-CP, the rights and obligations of the household business owner and household members participating in the household business registration are regulated as follows:

“Article 81. Rights and obligations of the household business owner and household members participating in the household business registration

1. The household business owner shall fulfill tax obligations, financial obligations and business activities of the household business as prescribed by law.

2. The household business owner represents the household business as the petitioner for civil matter settlement, plaintiff, defendant, or person with related rights and obligations before Arbitration, Courts, and exercises other rights and obligations as prescribed by law.

3. The household business owner may hire another person to manage and operate the business activities of the household business. In this case, the household business owner and the household members participating in the household business registration remain liable for debts and other asset obligations arising from business activities.

4. The household business owner and the household members participating in the household business registration are liable for the business activities of the household business.

5. Other rights and obligations as prescribed by law.”

Accordingly:

– The household business owner shall fulfill tax obligations, financial obligations and business activities of the household business as prescribed by law.

– The household business owner represents the household business as the petitioner for civil matter settlement, plaintiff, defendant, or person with related rights and obligations before Arbitration, Courts, and exercises other rights and obligations as prescribed by law.

– The household business owner may hire another person to manage and operate the business activities of the household business. In this case, the household business owner and the household members participating in the household business registration remain liable for debts and other asset obligations arising from business activities.

– The household business owner and the household members participating in the household business registration are liable for the business activities of the household business.

– Other rights and obligations as prescribed by law.