Rights and Obligations of Household Business Owners and Participating Family Members in Vietnam

How is business registration regulated for real estate business activities? What is the right to establish a household business and the obligation to register a household business?

Current legal basis: Decree 168/2025/ND-CP on enterprise registration (effective 01/7/2025; replacing Decree 01/2021/ND-CP under Article 124) and the Law on Real Estate Business 2023 together with Decree 96/2024/ND-CP (effective 01/8/2024). Contents previously citing Decree 01/2021/ND-CP are now applied under the corresponding provisions of Decree 168/2025/ND-CP.

1. Legal regulations on household businesses

Household business registration is now carried out under the corresponding provisions of Decree 168/2025/ND-CP (replacing Decree 01/2021/ND-CP; provisions on household businesses are set out from Article 82 to Article 88) on the right to establish a household business as follows:

– A household business is established by an individual or family household members and is liable with all of its assets for the household’s business activities. Where a household business is established by family household members, the members authorize in writing one member to be the representative of the household business during business operations. This authorization document must be notarized or certified as prescribed by law. The individual registering the household business, or the person authorized by the family household members to be the representative, is the household business owner.

– Family households engaged in agricultural, forestry, fishery production, salt making, and street vendors, snack sellers, traveling traders, mobile businesses, seasonal businesses, and low-income service providers are not required to register a household business, except where they conduct conditional business lines. Provincial-level People’s Committees prescribe the low-income threshold applicable within the locality.

Regarding real estate business activities: under clause 1, Article 9 of the Law on Real Estate Business 2023 (effective 01/8/2024), organizations and individuals conducting real estate business must establish an enterprise with real estate business lines, except that individuals conducting small-scale real estate business are not required to establish a real estate business enterprise but must declare and pay taxes as prescribed by law (clause 3, Article 9). The criteria for determining “small scale” and the scope within which household businesses may conduct real estate business should be checked against Decree 96/2024/ND-CP before application.

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

Pursuant to clause 2, Article 82 of Decree 168/2025/ND-CP, individuals and family household members who are Vietnamese citizens with full civil act capacity under the Civil Code have the right to establish a household business, except in the following cases:

+ Persons being prosecuted for criminal liability, held in temporary detention, serving prison sentences, serving administrative handling measures at compulsory detoxification or compulsory education establishments, or being banned by a Court from holding positions, practicing, or performing certain jobs;

+ Persons not permitted to establish a household business under the law.

Pursuant to Article 83 of Decree 168/2025/ND-CP on the obligation to register a household business:

– Individuals and family household members may register only one household business nationwide.

– Founders of household businesses and household businesses have the obligation to register the household business, report, and fulfill other obligations as prescribed, and may not operate under the name of a household business without registration.

– Where a household business is established by family household members, the household business owner carries out household business registration procedures when all members have approved the registration contents.

3. How does the law regulate the rights and obligations of household business owners and participating family household members?

Pursuant to Article 84 of Decree 168/2025/ND-CP on the rights and obligations of household business owners and family household members registering a household business — now implemented under Decree 168/2025/ND-CP (replacing Decree 01/2021/ND-CP, effective 01/7/2025); the previous contents (Article 81 of Decree 01/2021/ND-CP, applicable until 30/6/2025) are as follows:

– Household business owners and family household members registering a household business conduct the household business’s activities in accordance with the law and are jointly liable for the household business’s activities.

– The household business owner may directly or hire another person to manage and operate the household business’s activities. In this case, the household business owner and the family household members registering the household business remain liable for debts and other property obligations arising from the household business’s activities.

– The household business owner performs tax and financial obligations; represents the household business as the petitioner in civil matters, plaintiff, defendant, or person with related rights and obligations before arbitration and courts; executes administrative sanction decisions and other rights and obligations as prescribed by law.

– Household business owners and family household members registering a household business may contribute capital, purchase shares, and purchase capital contributions in enterprises in their personal capacity.

– Household business owners and family household members registering a household business may not concurrently be owners of private enterprises.

Frequently asked questions

Who may register a household business? Individuals who are Vietnamese citizens aged 18 or older with full civil act capacity; each individual may register only one household business nationwide.
Does a household business have legal personality? No. The household business owner is liable without limit with all of his/her assets.
Where to register a household business? At the commune-level business registration authority where the household business is headquartered under the two-tier government model.