How Many Household Businesses Can One Individual Register in Vietnam?

Short answer: Each individual may register only 01 household business nationwide. An individual who is already the owner of a household business may not simultaneously be the owner of a private enterprise or a general partner of a partnership. The household business registration dossier is submitted to the commune-level business registration agency where the business location is situated (from 01/7/2025, the district level no longer exists). Basis: Decree 168/2025/ND-CP on enterprise registration and the Law on Enterprises 2020 (as amended by Law No. 76/2025/QH15).

Legal basis

• Law on Enterprises 2020, as amended by Law No. 76/2025/QH15 — Article 188 (private enterprises);
• Decree 168/2025/ND-CP on enterprise registration (effective from 01/7/2025) — registration of household businesses;
• Two-level local government from 01/7/2025 (provincial and commune/ward levels), the district level abolished.

How many household businesses may one individual register?

The law provides: an individual or household member may register only one household business nationwide. This ensures each small business owner is clearly liable with all of their assets for the household business’s activities.

• A person already owning 01 household business may not register a second one, even in another province or city;
• Where a household business is established by household members: the members authorize one member to act as the representative of the household business;
• A household business has no legal person status; the household business owner is liable with all of their assets.

Cases not permitted concurrently

• An individual who is the owner of a private enterprise may not simultaneously own a household business;
• An individual who is a general partner of a partnership may not simultaneously own a household business;
• An individual who owns a household business may still contribute capital to establish an LLC or buy shares of a joint-stock company (as a member/shareholder, not as a private enterprise owner or general partner).

Where to register a household business? What does the dossier include?

Receiving agency

From 01/7/2025, the household business registration dossier is submitted to the commune-level business registration agency where the business location is situated (no longer to the district-level People’s Committee as before).

Dossier components

• Application for household business registration in the current form;
• Copy of the individual’s legal papers (citizen ID card) for individuals; copies of household members’ legal papers for household cases;
• Copy of the household members’ meeting minutes on establishing the household business (for household member registration);
• Copy of the household members’ written authorization for one member to act as the household business representative (for household cases).

Processing time

The business registration agency issues the household business registration certificate within 03 working days from receipt of a complete and valid dossier.

Current tax obligations of household businesses

• Household businesses must register for tax and are issued a tax code;
• The presumptive tax policy has been abolished — household businesses declare and pay tax on a declaration basis under current regulations;
• From 01/01/2026, collection and payment of the business license tax is terminated (Resolution 198/2025/QH15);
• Household businesses with large revenue and scale should consider converting to enterprises to enjoy support policies.

Frequently asked questions

Can a person be both a household business owner and a director of an LLC?

Yes, if serving as director does not violate concurrent-position regulations and the company’s charter permits. The prohibition only applies to simultaneously being a private enterprise owner or a general partner.

Can a household business open branches?

No. A household business may only operate at its registered business location; to expand to another location, it must register a business location as prescribed or convert to an enterprise.

How to convert a household business into a company?

The law provides a mechanism supporting household businesses to convert into enterprises; upon conversion, the household business terminates and the new enterprise inherits the operations. Tax obligations of the household business should be reviewed before conversion.

Notes on applying current legislation

Many household business owners still submit dossiers at the district-level agency out of habit — from 01/7/2025 this authority belongs to the commune-level business registration agency. Meanwhile, the abolition of the presumptive tax and the business license tax fundamentally changes the financial obligations of household businesses; keep updated to avoid violations. Contact ANT Legal lawyers at 0966.475.966 for advice.

Common risks to note

• One individual owning 02 household businesses — a violation;
• Submitting dossiers to the district-level People’s Committee (no longer competent);
• Continuing to pay tax under the abolished presumptive method;
• Opening additional business locations without registration.

How can ANT Legal help?

ANT Legal advises on household business registration conditions, drafts dossiers, conducts registration procedures, converts household businesses into enterprises and advises on tax obligations. For prompt advice, please contact our lawyers at 0966.475.966.

Related articles

• Persons not allowed to register household businesses in Vietnam
• Must household businesses register for tax?
• Procedures for registering a private enterprise in Vietnam
• Minimum capital for enterprise registration in Vietnam?
• Procedures for registering a private enterprise in Vietnam