Subjects who are not allowed to register to establish business households in Vietnam

Household businesses are a popular form of business chosen by many people because of the advantages that this form brings. However, not everyone can register to operate in this form. This article shares some legal regulations surrounding the topic of Business Households according to current law. 

CSPL:  Article 79, 80, 87 Decree 01/2021/ND-CP

 1. What is a business household?

– A business household is registered to be established by an individual or household members and is responsible with 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 registering a business household, the person authorized by household members to represent the business household, is the owner of the business household.

– People who do not have the right to establish a business household and the obligation to register a business household

  Individuals and household members who are Vietnamese citizens with full civil act capacity according to the provisions of the Civil Code 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 authority.

– Rights and obligations of business household owners and household members participating in business household registration

+ Business household owners carry out tax obligations, financial obligations and business activities of business households according to the provisions of law.

+ The business household owner represents the business household as a requester to resolve civil matters, plaintiff, defendant, person with related rights and obligations before the Arbitrator, Court and other rights and obligations according to the provisions of law.

+ The business household owner can hire others to manage and operate the business activities of the business household. In this case, the business household owner and household members participating in business household registration are still responsible for debts and other property obligations arising from business activities.

+ The business household owner and household members participating in business household registration are responsible for the business activities of the business household.

+ Other rights and obligations as prescribed by law. law.

2. Order and procedures for business household registration

2.1. Registration dossier

– Business household registration dossier includes:

• Application for business household registration;
• Individual legal documents for business household owners, household members registering business households in case household members register business households;
• Copy of minutes meeting of household members on establishing a business household in case household members register a business household;
• Copy of authorization document of a household member for a member to be the owner of a business household in case household members register a business household.

2.2. Order and procedures

Step 1. Submit the application

• The registrant submits the application at the one-stop department at the Finance – Planning Department of the district People’s Committee where the business household is headquartered.
• The Finance – Planning Department receives the application and returns to the submitter a Receipt of receipt of the application for registration of establishment of the business household. business.

Step 2. Appraisal and return results

• The Finance – Planning Department issues the Business Registration Certificate within 03 working days from the date of receipt of the application.
• In case the application is not valid, the Finance – Planning Department will send a written notice of the contents that need to be amended and supplemented to the registrant within 03 days. working days from the date of receipt of the application.