Household Business in Vietnam: Latest Regulations

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Short answer: A household business is registered and established by an individual or household members, with the owner liable with all their assets, and it has no legal entity status. From 01/7/2025, household business registration is carried out at the commune-level business registration authority under Decree 168/2025/ND-CP; from 01/01/2026, the presumptive tax is abolished and household businesses switch to paying tax under the declaration method. This article compiles all the latest regulations on household businesses.

Legal basis

Decree 168/2025/ND-CP on household business registration (replacing Decree 01/2021/ND-CP, effective from 01/7/2025);
Law on Enterprises 2020 (amended and supplemented by Law No. 76/2025/QH15, effective from 01/7/2025);
Resolution 198/2025/QH15: abolishing the presumptive tax for household businesses; terminating collection and payment of the business license tax from 01/01/2026;
Tax Administration Law 108/2025/QH15 (effective from 01/7/2026).

What is a household business?

A household business is registered and established by an individual or household members, who are liable with all their assets for the business activities of the household. Where household members register a household business, they authorize one member to act as the household business representative. The individual registering the household business, or the person authorized by household members to act as representative, is the household business owner.

A household business is not an enterprise and has no legal entity status. It is a popular business model for small-scale activities: shops, eateries, personal services, online sales.

Legal characteristics of a household business

Subject: an individual who is a Vietnamese citizen with full civil act capacity, or household members (authorizing one person as representative);
Asset liability: unlimited — the owner is liable with all their assets;
Household business name: comprises two elements “Household business + proper name”, must not be duplicated or confusingly similar;
Location: one head office may be registered; branches and representative offices may not be established;
Business lines: may conduct business lines not prohibited by law; conditional business lines must satisfy all conditions;
Employing labor: according to actual needs, fully complying with laws on labor, wages and social insurance.

Conditions for registering a household business

Individuals and household members are Vietnamese citizens with full civil act capacity;
Not subject to prohibition: minors, persons restricted in/lacking civil act capacity, persons under criminal prosecution, serving prison sentences, banned by a court from holding office or practicing a profession;
Each individual may register only one household business nationwide (except where the law provides otherwise for household members registering together);
A private enterprise owner may not simultaneously be a household business owner.

Latest household business registration procedures

Registration dossier

Application form for household business registration using the current prescribed form;
Copy of legal documents of the individual for the household business owner and household members registering the household business;
Copy of the household members’ meeting minutes on establishing the household business (where household members register together);
Copy of the authorization document from household members to one member as household business owner (where household members register together).

Where to file, and how long for the result?

File the dossier with the commune-level business registration authority where the household business locates its head office (under the two-tier local government model from 01/7/2025, no more district level). The commune-level business registration authority issues the Household Business Registration Certificate within 03 working days from receiving a complete valid dossier. The household business code is also the household business’s tax code.

Tax obligations of household businesses from 01/01/2026

Under Resolution 198/2025/QH15, from 01/01/2026:

Presumptive tax abolished: household businesses switch to paying tax under the declaration method as prescribed by tax administration law;
Business license tax terminated: household businesses no longer pay the business license tax;
Household businesses use e-invoices as prescribed by invoice and document law;
Household businesses must fully and timely declare and pay taxes; the tax authority manages by risk and may inspect and assess taxes when violations are detected.

Rights and obligations of the household business owner

Fulfill tax, financial and business operation obligations as prescribed by law;
Represent the household business as the requester for civil matter resolution, plaintiff or defendant before arbitration and courts;
May hire others to manage and operate the business; in such cases the owner and participating household members remain liable for debts and asset obligations arising;
Comply with labor and social insurance laws for employees working for the household business;
Notify suspension or termination of operations under proper procedures when needed.

Prohibited acts

Dishonest declarations in the household business registration dossier;
Conducting prohibited business lines; conducting conditional business lines without meeting the conditions;
Failing to fulfill tax obligations, using unlawful invoices;
Lending or leasing the Household Business Registration Certificate.

Frequently asked questions

Is a household business an enterprise?

No. A household business is an independent business model, not an enterprise type under the Law on Enterprises, and has no legal entity status.

Where is a household business registered from 01/7/2025?

At the commune-level business registration authority where the household business locates its head office. No longer filed at the district-level People’s Committee as before.

Do household businesses still pay presumptive tax?

No. The presumptive tax has been abolished; from 01/01/2026 household businesses pay tax under the declaration method under Resolution 198/2025/QH15.

How many household businesses may one person register?

Each individual may register only one household business nationwide.

Notes on applying current legal provisions

This article belongs to the household business knowledge group and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or carrying out procedures. The tax policy for household businesses is in a transition phase, and detailed regulations may continue to be supplemented with further guidance. Where it is necessary to determine the exact regulations applicable to your household business, you should contact an ANT Legal lawyer at 0966.475.966 for review and advice before proceeding.

Common risks to note

Applying outdated regulations (presumptive tax, filing at district-level People’s Committees, business license tax) that are no longer effective.
Mistakenly treating a household business as having legal entity status like a company.
Failing to fulfill declaration and tax payment obligations under the new method.
Lending the household business registration certificate.

How can ANT Legal help?

ANT Legal advises on conditions, drafts household business registration dossiers, carries out procedures at commune-level business registration authorities, advises on tax obligations, e-invoices, and converting household businesses into enterprises when expansion is needed. For quick advice, please contact our lawyers at 0966.475.966.

Legal Knowledge, Legal Updates

What Is a Household Business? Latest Regulations