Regulations on the rights and obligations of business household owners and household members participating in business household registration

How is business registration for real estate business activities regulated? What are the rights to establish business households and obligations to register business households?

1. Legal provisions on business households

Pursuant to Article 79 of Decree 01/2021/ND-CP stipulates on business households as follows:

– Business households are registered by an individual or household members and are responsible with all their assets for the business activities of the household. 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.

– Households engaged in agricultural, forestry, fishery production, salt making and street vendors, snacks, traders, mobile businesses, seasonal businesses, low-income service providers do not have to register as business households, in case of business in conditional business investment sectors, People’s Committee Provinces and centrally run cities regulate low income levels applicable on a local scale.

Thus, according to the above regulations, only households engaged in agricultural, forestry, fishery, salt production and street vendors, snacks, traders, mobile businesses, seasonal businesses, and low-income service providers will not register their business. As for your real estate business, even on a small scale, you still have to register your business and pay taxes (if any arise) as usual.

2. The right to establish a business household and the obligation to register a business household according to the law

Pursuant to Article 80 of Decree 01/2021/ND-CP stipulating the right to establish a business household and the obligation to register a business household as follows:

– Individuals and household members who are Vietnamese citizens with full civil act capacity according to the provisions of the Civil Code the right to establish business households according to the provisions of this Chapter, except for the following cases:

+ Minors, people with limited civil act 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 detoxification facilities, compulsory education establishments or being 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 specified in Clause 1 of this Article are only allowed to register one business household nationwide and have the right to contribute capital, buy shares, and purchase capital contributions in the enterprise in their individual capacity.

– Individuals and household members who register a business household may not simultaneously be the owner of a private enterprise or a general partner of a partnership unless otherwise permitted by law. unanimous consent of the remaining partners.

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

Pursuant to Article 81 of Decree 01/2021/ND-CP stipulating the rights and obligations of business household owners and household members participating in business household registration as follows:

– Business household owners perform the following obligations: on taxes, financial obligations and business activities of business households according to the provisions of law.

– The business household owner represents the business household as a requester to resolve civil matters, plaintiffs, defendants, people 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.

– Business household owners and household members participating in business household registration are responsible for the business activities of the business household.

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