Regulations on business household registration according to Vietnamese law

1. How is the registration of business households regulated?

According to Article 87 of Decree 01/2021/ND-CP regulating the registration of business households specifically as follows:

(1) Registration of business households is carried out at the district business registration authority where the business household’s headquarters is located.

(2) Records Business household registration documents include:

– Application for business household registration;

– Personal legal documents for business household owners and household members registering business households in case household members register business households;

– Copy of minutes of meeting of household members on the establishment of business households in case household members household member registers a business household;

– Copy of the household member’s authorization document for a member to be the owner of a business household in case household members register a business household.

(3) Upon receiving the dossier, the district-level Business Registration Authority shall give a Receipt and issue a Business Household Registration Certificate to the business household within 03 working days from the date of receipt. Date of receipt of valid dossier.

– In case the dossier is invalid, within 03 working days from the date of receiving the dossier, the district business registration authority must notify in writing the person submitting the dossier or the business household founder. The notice must clearly state the reason and requests to amend and supplement documents (if any).

(4) If after 03 working days from the date of submitting the application for household business registration, the Business Household Registration Certificate is not received or the notice requesting amendments and supplements to the business household registration dossier is not received, the founder of the business household or business household has the right to complain and denounce according to the provisions of law on complaints and denunciations. report.

(5) Periodically on the first working week of every month, the district-level Business Registration Authority sends a list of business households registered last month to the Tax Authority at the same level, the Business Registration Office and the provincial specialized management agency.

2. Can a business household conduct business at multiple locations?

According to Article 86 of Decree 01/2021/ND-CP regulates the business location of a business household as follows:

– The business location of a business household is the place where the business household conducts business activities.

– A business household can business activities in many locations but must choose one location to register the business household’s headquarters and must notify the Tax Administration Agency and market management agency where business activities are conducted for the remaining business locations.

Thus, according to the above regulations, business households can operate in many locations but must notify the Tax Administration Agency and market management agency where business activities are conducted for the business locations. remaining business and can only choose one location to register the business household’s headquarters.

3. If a business household conducts business in many locations but does not notify the business registration authority, what will be the penalties?

In Clause 1, Article 63 of Decree 122/2021/ND-CP regulates violations of the reporting information regime of business households as follows:

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

a) Failure to report the business situation as required by the district business registration authority;

b) Changing the owner of the business household but not sending the dossier notifying the change in business household registration content to the district business registration authority where it was registered registration;

c) Temporarily suspending business, continuing business before the announced deadline but not sending written notice to the district-level business registration authority where registered;

d) Changing business location but not notifying the district-level business registration authority;

dd) Terminating business activities in the form of business households without notification or Failure to return the original Business Household Registration Certificate to the district-level business registration authority;

e) Changing business lines but not sending a notification to the district-level business registration authority where the business household is headquartered;

g) Doing business in many locations but not notifying the district-level business registration authority where the business household’s headquarters, the tax agency, or the management agency is located market.

In case there is a violation of tax law, it will be handled according to the regulations on sanctioning administrative violations in the tax field.”

Thus, if a business household operates business in many locations but does not notify the district business registration authority where the business household’s headquarters, the tax agency, and the market management agency are located, they may be fined from VND 5,000,000 to 10,000,000 VND.

In addition, according to Clause 2 of Decree 122/2021/ND-CP, business households must also apply the remedial measure of being forced to notify the district business registration authority.

Note:  according to Clause 2, Article 4 Decree 122/2021/ND-CP, the fine level specified above is the fine level applicable to individuals. For the same administrative violation, the fine level for organizations is equal to 2 times the fine level for individuals.