Conditions for establishing a business household according to current regulations
According to Clause 1, Article 82 of Decree 01/2021/ND-CP, the business registration certificate is granted to a business household that meets the following conditions:
- Doing business in industries and occupations not subject to prohibited business investment.
- The naming of business households must comply with the provisions of Article 88 of Decree 01/2021/ND-CP, specifically:
+ The business household's name includes two components: the phrase "business household" and the separate name of the business household. In particular, the business household's own name uses the letters in the Vietnamese letter list, the letters F, J, Z, W and can be accompanied by numbers and symbols.
+ Do not use words or symbols that violate historical, cultural traditions or pure national customs.
+ When naming a business household, the words "business" and "companies" must not be used to name the business household.
+ The separate name of the business household must not be the same as the separate name of another business household registered for business within the district level.
- The business household registration file is valid.
In addition, when registering to establish a business household, the registered person also needs to pay the full fee according to regulations.
Cases where business households are not allowed to be established
Pursuant to Clause 1, Article 80 of Decree 01/2021/ND-CP, the following subjects are not allowed to register to establish business households:
- Juvenile people, people with limited civil act capacity; people with lost civil act capacity; people with difficulty in perception, mastering behavior.
- People who are being prosecuted for criminal liability, detained, serving a prison sentence, serving administrative measures at compulsory drug rehabilitation facilities, compulsory education institutions or being banned by the Court from holding a position, practicing a profession or doing certain jobs.
- Other cases as prescribed by relevant laws.
If they fall into one of the above cases, they are not allowed to register to establish a business household.
Cases of sales that do not require business registration
According to Clause 2, Article 79 of Decree 01/2021/ND-CP on business registration, there are cases where business households do not need to register their business as follows:
Households producing agriculture, forestry, fishery, salt making and street vendors, gifts, street vendors, mobile businesses, seasonal businesses, and services with low incomes do not have to register for business, except in cases of trading in industries and occupations with conditions. The People's Committees of provinces and centrally run cities shall prescribe low income levels applicable to the whole locality.
Recently, the Ministry of Finance has submitted to the Government a Draft Decree on business registration.
If approved, this new Decree will replace Decree 01/2021/ND-CP. The draft Decree also proposes cases where business households do not need to register for business as follows:
Households producing agriculture, forestry, fishery, salt making and street vendors, gifts, street vendors, mobile businesses, seasonal businesses, and services with low incomes do not have to register for business, except in cases of trading in industries and occupations with conditions. The People's Committees of provinces and centrally run cities shall prescribe low income levels applicable to the whole locality.
