Procedures for changing the representative of a

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Procedures for changing the representative of a business householdis legal content that readers often need to check carefully before implementing it in practice. This article has been systematized by ANT Legal in an easy-to-understand manner, helping individuals and businesses understand the main issues, common risks and appropriate solutions.

What is a business household?

Clause 1, Article 79, Decree 01/2021/ND-CPBusiness registration stipulates that a business household is established by an individual or household members and is responsible for all of their assets for the business activities of the household.

In case household members register a business household, one member shall be authorized to act as the business representative. The individual who registers the business household, the person authorized by the household members to act as the business household representative, is the business household owner.

Thus, business households do not have legal status, do not have their own seal, cannot open branches or representative offices, and cannot exercise the rights that businesses are exercising.

Business households are also not allowed to have more than 10 employees. In order for a business household to operate effectively, a business household must use the potential of its members to help the business household develop.

Can a business household change its owner?

Pursuant to Clause 3, Article 90 of Decree 01/2021/ND-CPIn case of changing the owner of a business household, the business household shall send a dossier notifying the change in business household registration content to the district business registration authority where it was registered. The dossier includes the following documents:

a) Notice of change of business household owner signed by the old business household owner and new business household owner or signed by the new business household owner in case of change of business household owner due to inheritance;
b) Sales contract or documents proving completion of the sale in case of selling a business; Donation contract in case of donation to business households; A copy of the document confirming the legal inheritance rights of the heir in case of change of business owner due to inheritance;
c) A copy of the meeting minutes of household members on the change of business owner in case household members register their business;
d) Copy of the household member’s authorization document for a member to be the owner of the business household in case the household members register the business household.

After selling, donating, or inheriting the business household, the business household is still responsible for the debts and other property obligations of the business household arising in the period before the date of transfer of the business household, except in the case of business households. The business owner, the buyer, the recipient, the heirs and the creditors of the business household have other agreements.

Thus, according to the above regulations, you have the right to change the owner of the business household in your name. Documents must comply with the regulations above.

Who is the representative of the business household?

The representative of the business household must first be a person who is qualified to establish a business household.

According to the provisions of Clause 1, Article 80 of Decree 01/2021/ND-CP, individuals and household members are Vietnamese citizens. have full civil act capacity according to the provisions of the Civil Code and have the right to establish business households, except for the following cases:

Minors and people with limited civil act capacity; people who have lost their civil act capacity; People with difficulties in cognition and behavior control;
People who are being prosecuted for criminal liability, detained, serving prison sentences, serving administrative measures at compulsory drug treatment facilities, compulsory education establishments or are banned by the Court from holding positions, practicing certain professions or doing certain jobs;
Other cases as prescribed by relevant laws related.

Documents and procedures for changing the representative of a business household

Procedures for changing the representative of a business household are listed in cases of registering to change the content of business household registration. The dossier to change the representative of a business household includes the following documents:

*) In case of changing the representative of a business household but does not change the business owner but remains the same, the dossier includes:

Notice of changing the content of business household registration signed by the business household owner according to the form specified in Appendix III-2 Circular 01/2021/TT-BKHDT on instructions business registration
Copy of minutes of meeting of household members on registration of changes in business household registration content in case household members register business households.

*) In case of changing the business household representative but changing the business owner, the dossier includes the following documents:

Notification of change of business household owner signed by the old business household owner and new business household owner or by the new business household owner in case of changing the business household owner due to inheritance with the form specified in Appendix III-3 of the Circular 01/2021/TT-BKHDT on instructions for business registration
Purchase contract or documents proving completion of purchase in case of selling business households; Donation contract in case of donation to business households; Copy of document certifying the legal inheritance rights of the heir in case of changing the business household owner due to inheritance
Copy of the minutes of the meeting of household members on changing the business household owner in the case of household members registering the business household
Copy of authorization document of the household member for a member to be the owner of the business household in the case of registered household members business household.

After preparing the application, the business household will submit the application at Finance – Planning Department belonging to the District People’s Committee. Upon receiving the application, the Finance – Planning Department of the District People’s Committee shall 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 application. If the dossier is invalid, the Finance – Planning Department of the district People’s Committee will 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.

Above is our advice to answer questions about the procedure for changing the representative of the business household.

Note on Applying Current Legal Regulations

This article belongs to the Business & M&A group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.

Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.

Common Legal Risks to Note

Applying legal instruments that have been amended, supplemented or replaced.
Preparing an incomplete set of documents, materials or necessary evidence.
Misunderstanding the conditions, procedure, timeline or competent authority.
Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.

How Can ANT Legal Support You?

ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.

For prompt advice, you may contact a lawyer at 0966.475.966.

Business & M&A, Legal Knowledge

Procedures for changing the representative of a business household