How are the procedures for dissolving a business household in 2024?

Pursuant to Article 92 of Decree 01/2021/ND-CP Regulations on termination of business activities:

Termination of business activities
1. When terminating business activities, business households must send a notice of termination of business activities to the district business registration authority where they were registered. Attached to the notice must be the following documents:
a) Notice of tax code termination by the Tax Authority;
b) Copy of meeting minutes of household members on termination of business activities in case household members register business households;
c) Original certificate of household business registration business.
2. The business household is responsible for paying all debts, including tax debt and unfulfilled financial obligations, before submitting the application to terminate the business household’s operations, unless the business household and the creditor have otherwise agreed. The district business registration authority reviews the validity of the dossier and issues a notice of termination of business activities to the business household.

Current law does not have any documents regulating the dissolution of business households. In case the business household is no longer operating, then carry out procedures to terminate the business household’s operation.

According to the above regulations, procedures for terminating business operations is done as follows:

Step 1: Submit application

When business households terminate business activities, they must submit the following documents to the district business registration authority where the business was registered:

– Notice of termination of business activities

– Notice of tax code termination by the Tax Authority;

– A copy of the meeting minutes of household members on termination of household business activities in case household members register their business;

– Original business household registration certificate.

Note: Business households must fully pay all debts, including tax debt and unpaid financial obligations, before submitting the application. Unless otherwise agreed.

Step 2: The district business registration authority reviews the validity of the application.

Step 3: The district business registration authority issues a notice of termination of business activities to the business household.

How much is the penalty if a business household terminates business operations without notification?

Pursuant to Article 63 of Decree 122/2021/ND-CP regulating fines for violations of the information and reporting regime of business households:

Violation of the reporting information regime of business households
1. Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:
a) Failure to report business status as required by the district-level business registration authority;
b) Changing the business household owner but not sending a dossier notifying the change in business household registration content to the district-level business registration authority where registered;
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 notify or fail to return the original Business Registration Certificate to the district-level business registration authority;
e) Change the business line or profession but do not send 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 business registration authority where the business household’s headquarters is located, the tax agency, and the market management agency.
In case there is a violation of tax law, it will be handled according to regulations on sanctioning administrative violations in the tax field.
2. Remedial measures:
a) Forced reporting of business situation as required for violations specified in Point a, Clause 1 of this Article;
b) Forced notification to the district business registration authority for violations specified in Points b, c, d, dd, e and g, Clause 1 of this Article.

Thus, a business household that terminates business activities without notice or without returning the original Certificate of Business Registration to the district business registration authority will be fined from 5,000,000 VND to 10,000,000 VND.

In addition, business households are required to notify the district business registration authority of the termination of business activities.