How will a business household that violates the information reporting regime when changing its business location be handled?

1. How is the business location of a business household regulated?

According to Article 86 of Decree 01/2021/ND-CP regulates the business location of a business household as follows:

– The business location of a business household is the place where the business household carries out business activities.

– A business household can operate doing business in many locations but must choose one location to register the business household’s headquarters and must notify the Tax Administration Agency and market management agency where business activities are conducted for the remaining business locations.

2. Does a business household that moves its business address to another district need to notify the business registration authority?

Pursuant to Clause 1, Clause 4, Clause 5 and Clause 6, Article 90 of Decree 01/2021/ND-CP regulates the registration of changes in specific business household registration content as follows: following:

(1) The business household owner is responsible for registering changes to the content of the Business Household Registration Certificate with the Business Registration Authority within 10 days from the date of change.

(2) In case a business household moves its headquarters address to a district, town, or city in another province where the business household has registered, the business household shall send a dossier notifying the change of address to the district-level Business Registration Authority where the new headquarters is intended to be located. The dossier must contain copies of the following documents:

– Notice of change in business household registration content signed by the business household owner;

– Copy of minutes of meeting of household members on registration of change of head office address in case household members register business households;

– Copy of legal documents of the individual for the owner business households, household members register business households in case household members register business households.

(3) Upon receiving the dossier, the district business registration authority will issue a receipt and issue a business household registration certificate to the business household within 03 working days from the date of receiving the valid dossier. In case the dossier is invalid, the district-level Business Registration Authority shall clearly notify the business household of the content that needs to be amended and supplemented in writing within 03 working days from the date of receiving the dossier.

– Within 03 working days from the date of issuance of the Business Household Registration Certificate, in case the business household registers a change of head office address, the district-level Business Registration Authority where the business household has a new address must notify the Business Registration Office where the business household was previously registered.

(4) When being issued a new Certificate of Business Household Registration in case of registering to change the content of business household registration, the business household must return the old Certificate of Business Household Registration.

Thus, when moving the business headquarters address to a district different from the place where you were originally registered, you are responsible for sending a dossier notifying the change of address to the district-level Business Registration Authority where you intend to locate the new headquarters. Registration of changes is made according to the regulations mentioned above.

3. If a business household changes its business location but does not notify the business registration authority, what will be the penalties?

According to Clause 1, Article 63 of Decree 122/2021/ND-CP regulating violations of the reporting information regime of business households as follows:

“1 Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Failure to report the business situation as required by the district-level business registration authority;

b) Changing the owner of the business household but not sending a dossier notifying the change in business household registration content to the district-level business registration authority where it was registered registration;

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) Moving business location but not notifying the district-level business registration authority;

dd) Terminating business activities in the form of a business household without notification or without submitting the original Certificate of household business registration to the district-level business registration authority;

e) Changing business lines and lines without sending notice to the district-level business registration authority where the business household’s head office is located;

g) Business activities at many locations but do not notify the district business registration authority where the business household’s headquarters is located, the tax agency, and the market management agency.

In case of tax law violations, they will be handled according to regulations on sanctioning administrative violations in the tax field.”

Thus, if the business household does not notify the state agency when temporarily suspending business, it may be fined from 5,000,000 VND to 10,000,000 VND. In addition, according to Clause 2 of Decree 122/2021/ND-CP, business households must also apply remedial measures to notify the district business registration authority. Note: according to Clause 2, Article 4 of Decree 122/2021/ND-CP, the fine level is prescribed. The above is the fine level applicable to individuals. For the same administrative violation, the fine level for organizations is equal to 2 times the fine level for individuals.