How to Dissolve a Household Business in Vietnam

Short answer: A household business ceases operations when the household head notifies the commune-level business registration authority, pays all debts in full (tax debts, wage debts, other debts), and returns the Household Business Registration Certificate. The current procedure follows Decree 168/2025/ND-CP. The household head is liable with all of their assets for any unpaid financial obligations.

Legal basis

• Decree 168/2025/ND-CP on enterprise registration (effective from 01/07/2025) — termination of household business operations.

Cessation procedure

1. Step 1: The household head sends a notice of cessation to the commune-level business registration authority where registered;
2. Step 2: Pay all debts in full: tax debts (complete obligations with the tax authority), employee wage debts, other debts;
3. Step 3: Return the Household Business Registration Certificate;
4. Step 4: The business registration authority issues a notice of the household business’s cessation.

Tax obligations upon cessation

• Complete tax declarations and payments up to the time of cessation;
• Request the tax authority to terminate the tax code’s validity;
• Settle invoices and documents as prescribed (if invoices were used).

Responsibility of the household head

• Liable with all of their assets for unpaid debts and financial obligations;
• Cessation of the household business does not extinguish debt obligations;
• To continue business in another form: carry out procedures for converting the household business into an enterprise instead of ceasing operations.

If you need to determine the appropriate approach for your specific situation, you should discuss it with a lawyer beforehand to have your file reviewed and a suitable solution advised.

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

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