Right to register the establishment of business households
According to Clause 1, Article 79 of Decree 01/2021/ND-CP, a business household registered to be established by an individual or members of a household is responsible for all of its assets for the business activities of the household. In case the members of the household register a business household, authorizate one member to represent the business household. Individuals registered with business households, people authorized by household members to represent business households are business household owners.
According to Article 80 of Decree 01/2021/ND-CP, the right to establish a business household and the obligation to register a business household are stipulated as follows:
- Individuals and household members who are Vietnamese citizens with full civil act capacity as prescribed in the 2015 Civil Code have the right to establish a business household as prescribed in Chapter VIII of Decree 01/2021/ND-CP, except for the following cases:
+ Juvenile people, people with limited civil act capacity; people with lost civil act capacity; people with difficulty in perception and control of 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 law.
- Individuals and members of households specified in Clause 1, Article 80 of Decree 01/2021/ND-CP are only allowed to register one business household nationwide and are entitled to contribute capital, buy shares, buy capital contributions in enterprises as individuals.
- Individuals and household members registered for business household registration cannot be both owners of private enterprises and members of a consolidated company, except in cases where the consensus of the remaining consolidated members is obtained.
Penalties for business households that do not register for business
According to the provisions of Clause 1, Article 62 of Decree 122/2021/ND-CP, a fine of VND5 - 10 million will be applied to business households that do not register to establish business households in cases where registration is required according to regulations.
Apply the same penalty as above for one of the following acts:
- Individuals and members of a household registered to do business with more than one business household;
- Not authorized to establish a business household but still established a business household;
- Not registering to change the content of the Business Household Registration Certificate with the district-level business registration agency within 10 days from the date of change.
Note: The penalty level for cases of not registering business households is according to regulations applicable to individuals. The fine for an organization is twice the fine for an individual (Clause 2, Article 4 of Decree 122/2021/ND-CP).
When individuals and organizations want to establish business households, they must register their business in accordance with the provisions of law. However, in some cases, business households do not need to register for business.
According to Clause 2, Article 79 of Decree 01/2021/ND-CP on business registration, cases where business households do not need to register for business include:
- Households producing agriculture, forestry, fishery, and salt making;
- Street vendors, gifts, wholesalers;
- Mobile business people;
- Seafood business people;
- Low-income service workers.
Note:
- In case a household or individual doing business in the investment and business sector has conditions, they must still register for business in accordance with the provisions of law.
- The low income level applied to each locality will be regulated by the centrally-run city.
