Who May Establish a Household Business? Is Registration Required?

1. What is a household business?

Under Article 79 of Decree 168/2025/ND-CP on household businesses:

“Article 79. Household businesses

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

2. Households engaged in agricultural, forestry and fishery production, salt making, and itinerant vendors, petty traders, travelling traders, mobile businesses, seasonal businesses, and low-income service providers are not required to register a household business, except where they conduct conditional investment and business sectors. Provincial and centrally-run city People’s Committees shall prescribe the low-income thresholds applicable within their localities.”

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

2. Who has the right to establish a household business?

Under Article 80 of Decree 168/2025/ND-CP on the right to establish a household business and the obligation to register a household business:

“Article 80. The right to establish a household business and the 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 under criminal prosecution, in temporary detention, serving prison sentences, serving administrative handling measures at compulsory drug rehabilitation establishments or compulsory education establishments, or being prohibited by the Court from holding positions, practicing professions or performing certain jobs;

c) Other cases as prescribed by relevant laws.

2. Individuals and household members prescribed 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 owners of private enterprises or general partners of partnerships, except with the consent of the remaining general partners.”

Accordingly, 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:

• Minors, persons with limited civil act capacity; persons who have lost civil act capacity; persons with difficulties in cognition and behavior control;
• Persons under criminal prosecution, in temporary detention, serving prison sentences, serving administrative handling measures at compulsory drug rehabilitation establishments or compulsory education establishments, or being prohibited by the Court from holding positions, practicing professions or performing certain jobs;
• Other cases as prescribed by relevant laws.

3. Is one penalized for not registering a household business?

Under Article 62 of Decree 122/2021/ND-CP, as amended and supplemented by Decree 288/2026/ND-CP (effective from 21/7/2026), on fines for violations of household business registration:

– A fine of VND 5,000,000 to VND 10,000,000 for any of the following acts:

• Individuals or household members registering more than one household business;
• Establishing a household business without the right to do so;
• Failing to register a household business where registration is required;
• Failing to register changes to the contents of the Household Business Registration Certificate with the commune-level business registration agency within 10 days from the date of change.

– A fine of VND 10,000,000 to VND 20,000,000 for any of the following acts:

• Declaring false or inaccurate information in household business registration dossiers or dossiers for changing household business registration contents.

Where there are tax law violations, they shall be handled under the regulations on administrative penalties in the tax sector;

• Continuing to conduct conditional business sectors when the commune-level business registration agency has requested temporary suspension.

– Remedial measures:

• Compelling registration of the household business as prescribed for the violation at Point c, Clause 1 of this Article;
• Compelling registration of changes to the contents of the Household Business Registration Certificate where not yet registered, for the violation at Point d, Clause 1 of this Article.

Accordingly, failing to register a household business where registration is required may be fined VND 5,000,000 to VND 10,000,000, with compulsory registration of the household business as prescribed.

Notes on applying current legal provisions

This article belongs to the Enterprise Knowledge & M&A group and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or conducting transactions.

Legal provisions may change depending on timing, locality, dossier type and specific circumstances. Where it is necessary to determine the exact legal basis applicable to your dossier, you should contact an ANT Legal lawyer at 0966.475.966 for review and advice before proceeding.

Common risks to note

• Applying legal texts that have been amended, supplemented or replaced.
• Preparing incomplete dossiers, documents or evidence.
• Misunderstanding the applicable conditions, procedures, time limits or competent authority.
• Signing, filing or conducting transactions without fully assessing legal risks.

How can ANT Legal help?

ANT Legal assists in reviewing specific situations, checking dossiers, identifying the applicable legal basis, advising on handling plans, and representing you in working with individuals, organizations or competent authorities when necessary.

For quick advice, you may contact a lawyer at 0966.475.966.

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