Do business households with annual revenue of less than 100 million VND have to pay license fees?

Pursuant to Clause 1, Article 3 of Decree 139/2016/ND-CP supplemented by Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP, regulations on cases of license fee exemption are as follows:

Exemption from license fees
Cases that are exempt from license fees include:
1. Individuals, groups of individuals, and households engaged in production and business activities with annual revenue of 100 million VND or less.
2. Individuals, groups of individuals, and households with irregular production and business activities; There is no fixed location according to instructions from the Ministry of Finance.
3. Individuals, groups of individuals, and households producing salt.
4. Organizations, individuals, groups of individuals, households that farm, fish, seafood and fishery logistics services.
5. Commune cultural post office; Press agencies (print press, audio press, visual press, electronic press).
6. Branches, representative offices, and business locations of cooperatives providing technical services directly serving agricultural production.
7. Commune People’s Credit Fund; cooperatives specializing in providing services for agricultural production; branches, representative offices, business locations of cooperatives and private enterprises doing business in mountainous areas. Mountainous areas are determined according to the regulations of the Committee for Ethnic Minorities.
…

Accordingly, business households with annual revenue of less than 100 million VND are exempt from paying license fees.

How many professions can a business household register?

Based onClause 1, Article 89, Decree 01/2021/ND-CPstipulated as follows:

Business lines and professions of business households
1. When registering establishment or registering to change the content of business household registration, the business household must write the business line and profession on the Application for Business Household Registration and Notice of Change in Business Household Registration Content. The district-level business registration authority records information about business lines and professions on the Business Household Registration Certificate.
2. Business households are entitled to conduct business in conditional investment and business lines from the time they meet the conditions prescribed by law and must ensure that they meet those conditions throughout the operation process. State management of conditional investment and business industries and occupations and inspection of the compliance with business conditions of business households fall under the authority of specialized agencies according to the provisions of specialized laws.
3. In case the district-level Business Registration Authority receives a document from the competent authority regarding a business household conducting conditional investment and business lines but does not meet the conditions prescribed by law, the district-level Business Registration Authority shall issue a Notice requesting the business household to temporarily stop conducting business in the conditional investment and business lines, and at the same time notify the competent state authority to handle according to the provisions of law.

Comparing with the above regulations, currently the law does not limit the maximum number of industries in which business households can register to operate.

However, business households must register occupations that are not on the list of industries and occupations banned from investment and business in Article 6 of the Law on Investment 2020.

In case a business household registers conditional business investment sectors, it must ensure that it fully meets the conditions prescribed in Article 7 of the Law on Investment 2020.

What cases do not require business household registration?

Pursuant to Clause 2, Article 79 of Decree 01/2021/ND-CP stipulates as follows:

Business House
1. A business household is established by an individual or household members who are responsible for 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 who registers the business household, the person authorized by the household members to act as the business household representative, is the business household owner.
2. Households engaged in agricultural, forestry, fishery production, salt making, and those selling street food, snacks, traveling, mobile businesses, seasonal businesses, and low-income services do not have to register as business households, except in the case of doing business in conditional business investment sectors. The People’s Committees of provinces and centrally run cities regulate low income levels applicable locally.

According to this regulation, there are a number of cases where business household registration is not required:

– Households engaged in agricultural, forestry, fishery and salt production;

– People who sell street goods, snacks, business trips, mobile businesses, seasonal businesses, and low-income service providers;

In case a business household registers its business in conditional business investment sectors, it is still required to register the business household.