The rights and obligations to establish a business household are stipulated in Clause 1, Article 80 of Decree 01/2021/ND-CP as follows:
Individuals and household members who are Vietnamese citizens with full civil act capacity as prescribed by the Civil Code have the right to establish a business household as prescribed in this chapter, except in the following cases:
Minors, persons with limited civil capacity; persons who have lost civil capacity; persons with difficulty in cognition and behavior control;
People who are being prosecuted for criminal liability, detained, serving a prison sentence, serving an administrative measure at a compulsory drug rehabilitation facility, a compulsory education facility, or are prohibited by the Court from holding a position, practicing a profession, or doing certain work;
Other cases as prescribed by relevant laws.
According to the above regulations, the law does not prohibit teachers from establishing business households. However, for business households established to organize extra teaching and learning classes, Clause 3, Article 4 of Circular 29/2024/TT-BGDDT stipulates that teachers at public schools are not allowed to participate in the management and operation of extra teaching outside of school.
Pursuant to Article 81 of Decree 01/2021/ND-CP, business owners are obliged to:
Business owners shall perform tax obligations, financial obligations and business activities of the business household in accordance with the provisions of law.
The business household owner represents the business household as the person requesting settlement of civil matters, the plaintiff, the defendant, the person with related rights and obligations before the Arbitration, the Court and other rights and obligations as prescribed by law.
The business owner may hire another person to manage and operate the business. In this case, the business owner and the household members who register the business are still responsible for the debts and other financial obligations arising from the business.
Business owners and household members participating in business registration are responsible for the business activities of the business household.
Other rights and obligations as prescribed by law.
Based on the above regulations, if a business household is established to organize extra classes, the business household owner will have to manage, operate and be responsible for the obligations arising from the extra classes outside of school.
This contradicts the policy of the Ministry of Education and Training in Circular 29 and related documents that does not allow public school teachers to organize extra classes outside of school.
Thus, freelance teachers or those teaching at private schools can completely establish their own business to organize extra classes. Teachers at public institutions are not allowed to organize, operate, or manage extra classes, but can only participate in extra teaching outside of school under contract.
