What are the rights and obligations of business household owners and household members participating in business household registration

Can the company owner establish additional business households? How are the rights and obligations of business household owners and household members participating in business household registration regulated?

1. What is a business household?

According to Article 79 of Decree 01/2021/ND-CP regulating business households as follows:

“Article 79. Business households

1. A business household is registered by an individual or household members and is responsible for all of their assets for the household’s business activities. 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.

2. Households engaged in agricultural, forestry, fishery, salt production and street vendors, snacks, traders, mobile businesses, seasonal businesses, and low-income service providers do not have to register as business households, except in the case of doing business in conditional business investment sectors. The People’s Committees of provinces and centrally run cities regulate low income levels applicable on a local scale.”

Accordingly, a business household is established by an individual or household members and is responsible for all of their assets for the household’s business activities. 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.

2. Can the company owner establish additional business households?

According to Article 80 of Decree 01/2021/ND-CP stipulating the right to establish business households and the obligation to register business households as follows:

“Article 80. Right to establish business households and obligation to register business households

1. 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 according to the provisions of this Chapter, except for the following cases:

a) Minors, people with limited civil capacity; people who have lost their civil act capacity; people with difficulty in cognition and behavior control;

b) People who are being prosecuted for criminal liability, detained, are serving prison sentences, are serving administrative measures at compulsory drug treatment facilities, compulsory education establishments or are banned by the Court from holding certain positions, practicing professions or doing certain jobs;

c) Other cases as prescribed by relevant laws.

2. Individuals and household members specified in Clause 1 of this Article are only allowed to register one business household nationwide and are entitled to contribute capital, buy shares, and purchase capital contributions in the enterprise as individuals.

3. An individual or household member registering a business household cannot simultaneously be the owner of a private enterprise or a general partner of a partnership unless otherwise agreed by the remaining partners.”

Accordingly, an individual or household member registering a business cannot simultaneously be the owner of a private enterprise or a general partner of a partnership unless otherwise agreed by the remaining partners. Thus, if you are the owner of a private enterprise or a general partner of a partnership, you cannot be the owner of the business at the same time.

3. How are the rights and obligations of business household owners and household members participating in business registration?

According to Article 81 of Decree 01/2021/ND-CP stipulating the rights and obligations of business household owners and household members participating in business household registration as follows:

“Article 81. Rights and obligations of business household owners and household members participating in business household registration

1. The business household owner performs tax obligations, financial obligations and business activities of the business household according to the provisions of law.

2. The business household owner represents the business household as a lover request to resolve civil matters, plaintiffs, defendants, people with related rights and obligations before the Arbitrator, Court and other rights and obligations according to the provisions of law.

3. The business household owner can hire another person to manage and operate the business activities of the business household. In this case, the business household owner and household members participating in the business household registration are still responsible for debts and other property obligations incurred. generated from business activities.

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

5. Other rights and obligations as prescribed by law.”

Accordingly:

– The business household owner performs the obligations on taxes, 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, plaintiffs, defendants, people 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 someone else to manage Managing and operating business activities of business households. 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.

– Business household owners and household members participating in business household registration are responsible for the business activities of the business household.

– Other rights and obligations according to the provisions of law law.