Is a Business Household That Suspends Operations for More Than 06 Months Without Notifying the Business Registration Agency Penalized?

How is a business household regulated?

Under Article 79 of Decree 168/2025/ND-CP on business households as follows:

“Article 79. Business households

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1. A business household is registered for establishment by an individual or family household members and bears liability with all its assets for the household’s business activities. Where family household members register a business household, they authorize one member to act as the business household representative. The individual registering the business household and the person authorized by family household members to act as the business household representative is the business household owner.

2. Households engaged in agricultural, forestry, or fishery production, salt making, and itinerant vendors, snack sellers, long-distance traders, mobile businesses, seasonal businesses, or low-income service providers are not required to register a business household, except for conditional business investment lines and trades. Provincial-level People’s Committees and centrally-run city People’s Committees prescribe the low-income level applicable within the locality.”

What rights and obligations does the business household owner have?

The business household owner enjoys rights and is responsible for performing obligations under Article 81 of Decree 168/2025/ND-CP as follows:

– The business household owner performs tax obligations, financial obligations, and business activities of the business household as prescribed by law.

– The business household owner represents the business household as a civil matter petitioner, plaintiff, defendant, or person with related rights and obligations before Arbitration, Courts, and other rights and obligations as prescribed by law.

– The business household owner may hire others to manage and operate the business household’s business activities. In this case, the business household owner and family household members participating in registering the business household remain responsible for debts and other asset obligations arising from business operations.

– The business household owner and family household members participating in registering the business household are responsible for the business household’s business activities.

– Other rights and obligations as prescribed by law.

What procedures must a business household carry out to suspend operations?

Where a business household suspends business operations, it must give notice under Article 91 of Decree 168/2025/ND-CP as follows:

– Where suspending business for 30 days or more, the business household must notify the commune-level business registration agency where it registered its business and the directly managing tax authority.

– Where the business household suspends business operations or resumes business before the notified time limit, the business household sends a written notice to the commune-level business registration agency where the business household registered at least 03 working days before suspending business operations or resuming business before the notified time limit. The notice must be accompanied by a copy of the family household members’ meeting minutes on registering business suspension or resuming business before the notified time limit for cases where family household members registered the business household. After receiving the notice, the commune-level business registration agency issues a dossier receipt to the business household. Within 03 working days from receipt of a valid dossier, the commune-level business registration agency issues the business household a confirmation of the business household’s registration of business suspension and a confirmation of the business household’s registration of resuming business before the notified time limit.

Pursuant to the above provisions, a business household is responsible for notifying the commune-level business registration agency where it registered its business and the directly managing tax authority in case of business suspension for 30 days or more.

Is a business household that suspends operations without notice penalized?

Pursuant to Point c, Clause 1, Article 63 of Decree 122/2021/ND-CP as amended and supplemented by Decree 288/2026/ND-CP (effective from 21/7/2026) on penalty forms for suspending business without sending a written notice to the commune-level business registration agency where registered, the specific fine is from 5,000,000 VND to 10,000,000 VND.

In addition to the above fine, the violating business household is also subject to the remedial measure of being compelled to notify the commune-level business registration agency of the business suspension under Point b, Clause 2, Article 63 of Decree 122/2021/ND-CP as amended and supplemented by Decree 288/2026/ND-CP (effective from 21/7/2026).

Note: This fine level applies to individuals under Clause 2, Article 4 of Decree 122/2021/ND-CP as amended and supplemented by Decree 288/2026/ND-CP (effective from 21/7/2026).

Thus, where a business household suspends business for 30 days or more, it must notify the commune-level business registration agency where it registered its business and the directly managing tax authority. Violation of this notice obligation will subject the business household to penalties as prescribed by law.