Chương VIII Nghị định 01/2021/NĐ-CP: Hộ kinh doanh và đăng kí hộ kinh doanh

Chapter VIII

HOUSEHOLD BUSINESSES AND REGISTRATION OF HOUSEHOLD BUSINESSES

Article 79. Household business

1. A household business is established by an individual or family household members that shall take responsibility for business operations of the household business with all of their property. If a household business is established by members of a family household, one of them shall be authorized to act as the representative of the household business. The individual applying for registration of household business or the person authorized by the family household members to act as the representative of the household business shall be the owner of the household business.

2. Households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic or seasonal businesspeople, and service providers earning low revenues are not required to apply for establishment of household businesses, except for conditional business lines. The provincial People’s Committees shall specify the low revenues applied within their provinces.

Article 80. Rights to establish household businesses and obligations to apply for household business registration

1. Any individual or family household member that is a Vietnamese citizen and has full legal capacity as prescribed in the Civil Code shall have the right to establish household businesses in accordance with this Chapter, except the following cases:

a) Minors; people with limited legal capacity; incapacitated people; people having difficulties in controlling their behaviors;

b) People who are facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence, serving an administrative penalty in a correctional institution or rehabilitation center, or is prohibited by the court from holding certain positions or doing certain works;

c) Other cases prescribed by relevant laws.

2. Each individual or family household member mentioned in Clause 1 of this Article may register only one household business nationwide, and is entitled to contribute capital to and buy shares/stakes of other enterprises as an individual.

3. Individuals and family household members that apply for household business registration must not concurrently hold the position of sole proprietor, general partner of a partnership, unless otherwise agreed by the other general partners.

Article 81. Rights and obligations of owners of household businesses and family household members applying for household business registration

1. The owner of a household business shall fulfill tax and other financial liabilities, and perform business operations of the household business in accordance with regulations of law.

2. The owner of a household business shall represent the household business in civil proceedings, as the plaintiff, defendant, person with relevant interests and duties in front of the court or arbitral tribunal, and perform other rights and obligations as prescribed by law.

3. The owner of a household business may hire another person to manage and direct business operations of the household business. In this case, the owner and other family household members applying for household business registration remain liable for debts and other asset-related liabilities arising from business operations.

4. The owner and other family household members applying for household business registration shall be liable for all business operations of the household business.

5. They shall perform other rights and obligations as prescribed by law.

Article 82. Certificate of household business registration

1. Certificates of household business registration shall be issued to household businesses that are duly established and operating under this Decree. A household business shall be issued with the certificate of household business registration if all of the following conditions are satisfied:

a) The registered business lines are not banned;

b) The name of the household business is conformable with regulations of Article 88 hereof;

c) The application for household business registration is valid;

d) Fees for household business registration are fully paid.

2. The certificate of household business registration is issued according to information in the application for household business registration, which is provided by the household business founder.

3. Information on the certificate of household business registration is effective from its date of issue; the household business is entitled to do business from the date of issue of the certificate of household business registration, except for conditional business lines. In case the household business registers the date of commencement of business after the date of issue of the certificate of household business registration, the household business is entitled to do business from the registered date, except for conditional business lines.

4. Every household business may receive the certificate of household business registration directly at the office of the district-level business registration authority or pay fees to receive it by post.

5. The household business is entitled to request the district-level business registration authority to provide copies of the certificate of household business registration and pay fees for them.

Article 83. Household business ID number

1. The district-level business registration authority shall write the household business ID number on the certificate of household business registration as follows:

a) Provincial code: 02 digits;

b) District code: 01 letter in the Vietnamese alphabet;

c) Code of the business type: 01 character, 8 = household business;

d) The ordinal number of the household business: 06 digits from 000001 to 999999.

2. Subsequent letters of the Vietnamese alphabet shall be used for the codes of districts, district-level towns or provincial cities that are established after the effective date of this Decree.

3. If an urban/suburban district, district-level town or provincial city is divided after the effective date of this Decree, the old code shall be used by the divided administrative division and the subsequent letter in the Vietnamese alphabet shall be used for the code of the new administrative division.

4. Each provincial Department of Planning and Investment shall give notify codes of new districts in the province to the Ministry of Planning and Investment in writing.

Article 84. Rules for household business registration

1. The household business or its founder shall complete the application for household business registration and take legal responsibility for the legitimacy, truthfulness, and accuracy of information therein.

2. The district-level business registration authority is responsible for the legitimacy of the application for household business registration, not violations of law committed by the household business or its founder.

3. The district-level business registration authority is not responsible for settling disputes between individuals of a household business or between the them with other entities.

4. The owner of the household business may authorize another entity to follow procedures for household business registration as prescribed in Article 12 hereof.

Article 85. Quantity of application for household business registration

1. The household business or its founder shall submit 01 application to the district-level business registration authority when following procedures for household business registration.

2. The district-level business registration authority is not allowed to request the household business or its founder to submit more applications or documents other than those in the application for household business registration as prescribed.

Article 86. Business location of a household business

1. The business location of a household business is the place where specific business operations are carried out.

2. A household business may carry out business operations at multiple locations but must select a location as its headquarters and notify it to tax authorities and market surveillance authorities at places of other business locations.

Article 87. Household business registration

1. The household business registration shall be carried out at the business registration authority of district where the household business is headquartered.

2. An application for household business registration includes:

a) The application form for household business registration;

b) Legal documents of the owner of the household business or family household members applying for household business registration;

c) The copy of the minutes of meeting of family household members on establishment of household business in case the household business is established by family household members;

d) The copy of the letter of authorization made by the family household members to authorize a person to act as the owner of the household business in case the household business is established by family household members.

3. When receiving the application, the district-level business registration authority shall give a confirmation slip and issue the certificate of household business registration to the household business within 03 working days from the receipt of the valid application.

If the application is not satisfactory, within 03 working days from the receipt of the application, the district-level business registration authority shall give a written notification to the applicant or the household business founder. Such notification must specify necessary revisions (if any).

4. After 03 working days from the date of submission of the application for household business registration, if neither the certificate of household business registration is issued nor the notification of necessary revisions is given, the household business or its founder is entitled to lodge a complaint or denunciation in accordance with regulations of the Law on complaints and denunciation.

5. In the first week of every month, the district-level business registration authority shall send a list of household businesses registered in the previous month to the tax authority of the same district, the Business Registration Office, and regulatory agencies of the province.

Article 88. Naming of household businesses

1. Each household business has its own name. The name of a household business shall consist of two elements as follows:

a) The phrase “Hộ kinh doanh”;

b) The proper name.

The proper name consists of letters in the Vietnamese alphabet, the letters F, J, Z, W, digits, and symbols.

2. It is prohibited to use words or symbols that contradict Vietnam’s tradition, history, culture, and ethics in the proper name of the household business.

3. The name of a household business must not consist of the phrase “công ty” or “doanh nghiệp”.

4. The proper name of the household business must not coincide with the name of another household business which has been registered within the same district.

Article 89. Business lines of a household business

1. When applying for registration of a new household business, the household business shall write the business lines on the application form for household business registration or notification of changes to household business registration information. The district-level business registration authority shall write the business lines on the certificate of household business registration.

2. A household business are entitled to engage in conditional business lines from the day on which all business conditions are fulfilled and must maintain the fulfillment of such conditions throughout its operation. Specialized agencies are in charge of management and inspection of conditional business lines and fulfillment of conditions.

3. In case the district-level business registration authority receives a notification from a competent authority that the household business engages in conditional business lines without satisfying all conditions, the district-level business registration authority shall request the household business to stop engaging in the conditional business lines and notify a competent authority to handle the case in accordance with regulations of law.

Article 90. Registration of changes to household business registration information

1. The owner of the household business shall apply for registration of changes to the certificate of household business registration with the business registration authority within 10 days from the occurrence of such changes.

2. When changing household business registration information, except the cases prescribed in Clause 3 and Clause 4 of this Article, the household business shall send an application for changes to household business registration information to the district-level business registration authority where the household business is registered. The application includes the following documents:

a) The notification of changes to household business registration information which bears the signature of the owner of the household business;

b) The copy of the minutes of meeting of family household members on changes to household business registration information if the household business is established by family household members;

3. In case of replacement of the owner of the household business, the household business sends the application for changes to household business registration information to the district-level business registration authority where the household business is registered. The application includes the following documents:

a) The notification of replacement of the owner of the household business which bears the signatures of the old owner and the new older, or which bears the signature of the new owner in case of replacement of the owner of the household business due to inheritance;

b) A sale contract or documents proving completion of the sale of the household business; donation contract; copy of the certificate of the inheritor’s lawful right to inheritance in case of replacement of the owner of the household business due to inheritance;

c) The copy of the minutes of meeting of family household members on replacement of the owner of the household business if the household business is established by family household members;

d) The copy of the letter of authorization made by the family household members to authorize a person to act as the owner of the household business in case the household business is established by family household members.

After the sale, donation or inheritance of the household business, the household business shall still be liable to debts and other asset-related liabilities incurred by the household business before the transfer of the household business, unless otherwise agreed upon by the household business, buyer, beneficiary, inheritor and creditors.

4. In case a household business is relocated to another district, the household business must send an application for relocation to the business registration authority of the district to which it is relocated. The application must include copies of the following documents:

a) The notification of changes to household business registration information which bears the signature of the owner of the household business;

b) The copy of the minutes of meeting of family household members on relocation of the household business if the household business is established by family household members;

c) Copies of legal documents of the owner of the household business or family household members applying for household business registration.

5. When receiving the application, the district-level business registration authority shall give a confirmation slip and issue the certificate of household business registration to the household business within 03 working days from the receipt of the valid application. If the application is not satisfactory, within 03 working days from the receipt of the application, the district-level business registration authority shall inform the household business of necessary revisions.

Within 03 working days from the issuance date of the certificate of business household registration, the business registration authority of the district to which the household business is relocated must send a notification to the business registration authority of the district where the business household was registered.

6. When receiving a new certificate of household business registration in case of changes to household business registration information, the old certificate must be returned.

Article 91. Business suspension and resumption of business ahead of notified schedule

1. If the suspension period is 30 days or longer, the household business must send a notification to the business registration authority of district where it was registered and its supervisory tax authority.

2. If the household business suspends business or resumes its business ahead of the notified schedule, the household business shall send a written notification to the business registration authority of district where it was registered at least 03 working days before the planned date of business suspension or resumption of business ahead of the notified schedule. Such notification must be enclosed with the copy of the minutes of the meeting of family household members on business suspension or resumption of business ahead of schedule if the household business is established by family household members. When receiving the notification, the district-level business registration authority shall give a confirmation slip to the household business. Within 03 working days from the receipt of the valid application, the district-level business registration authority shall issue a certificate of registration of business suspension or certificate of registration of resumption of business ahead of the notified schedule to the household business.

Article 92. Shutdown of household business

1. When a household business shuts down, it must send a notification of shutdown of operation to the district-level business registration authority where it was registered. The notification must be accompanied by the following documents:

a) The notification of invalidation of TIN by the tax authority;

b) The copy of the minutes of meeting of family household members on shutdown of the household business if the household business is established by family household members;

c) The original certificate of household business registration.

2. The household business shall fully pay debts, including tax debts and financial liabilities which have been not yet fulfilled before submitting the application for shutdown of the household business, unless otherwise agreed upon by the household business and its creditors. The district-level business registration authority shall consider the validity of received documents and give a notification of shutdown to the household business.

Article 93. Revocation of certificate of household business registration

1. A household business shall have its certificate of household business registration revoked in the following cases:

a) Information provided in the application for household business registration is fraudulent;

b) The business is suspended for more than 06 consecutive months without notifying the district-level business registration authority where the business household was registered and the tax authority;

c) The household business engages in banned business lines;

d) The household business is established by person(s) banned from establishing the household business;

dd) The household business fails to send reports as prescribed in Clause 6 Article 16 hereof to the district-level business registration authority within 03 months from the prescribed deadline or the receipt of written request;

e) It is revoked under a Court’s decision or at the request of a competent authority as prescribed by law.

2. If the information in the application for household business registration is found fraudulent, the district-level business registration authority shall issue a notice of violations and a decision to revoke the certificate of household business registration.

If the application for changes to household business registration information is found fraudulent, the district-level business registration authority shall issue a notice of violations, cancel the changes to household business registration information made according to fraudulent information, issue the certificate of household business registration according to latest valid documents, and notify it to the competent authority to take actions in accordance with regulations of law. The district-level business registration authority requests the household business to submit a complete application to be issued with the certificate of household business registration. The household business may include contents of subsequent applications for changes in a single application for registration of changes.

3. In case the household business suspends business for more than 06 consecutive months without notifying the district-level business registration authority where the household business was registered or without submitting reports as prescribed in Point dd Clause 1 of this Article, the district-level business registration authority shall issue a notice of violations and request the owner of the household business to provide explanation at the office of the district-level business registration authority. If the owner of the household business fails to provide explanation within 10 working days from the deadline written in the notice or provides implausible explanation, the district-level business registration authority shall issue a decision to revoke the certificate of household business registration. The district-level business registration authority shall cooperate with relevant authorities to consider the explanation provided by the household business.

4. In case the household business engages in banned business lines, the district-level business registration authority shall issue a notice of violations and a decision to revoke the certificate of household business registration.

5. In case the household business is established by persons banned from establishing household businesses:

a) If the household business is established by an individual banned from establishing household businesses, the district-level business registration authority shall issue a notice of violations and a decision to revoke the certificate of household business registration;

b) If the household business is established by family household members that include the individual banned from establishing household businesses, the district-level business registration authority shall request the household business to replace such individual within 15 working days from the date of request. If the household business fails to replace the banned individual, the district-level business registration authority shall issue a notice of violations and a decision to revoke the certificate of household business registration.

6. In case the Court decides to revoke the certificate of household business registration, the district-level business registration authority shall issue a decision to revoke the certificate of household business registration according to the Court’s decision within 03 working days from the date of receipt of the court’s decision.

7. In case the district-level business registration authority receives a request for revocation of the certificate of household business registration from a competent authority as prescribed by law, within 10 working days from the receipt of the request, the district-level business registration authority shall revoke the certificate of household business registration according to the procedures in Clause 3 of this Article.

8. After receiving the decision to revoke the certificate of household business registration, the household business must follow procedures for shutdown according to Article 92 hereof, except the household business whose certificate of household business registration to serve the collection of tax debts at the request of the tax authority.

9. If the district-level business registration authority receives a request from the tax authority for invalidation of the revocation decision and restoration of the certificate of household business registration after the certificate of household business registration is revoke to serve the collection of tax debts, the district-level business registration authority shall issue a decision to invalidate the revocation decision and restore the certificate of household business registration within 03 working days from the receipt of the request.

Article 94. Re-issuance of certificate of household business registration

1. In case a certificate of household business registration is lost, burned, damaged, or otherwise destroyed, the household business may submit an application for reissuance of the certificate of household business registration to the business registration authority of district where the household business is headquartered. The district-level business registration authority shall consider re-issuing the certificate of household business registration within 03 working days from the receipt of the application.

2. Actions against issuance of certificate of household business registration without a satisfactory application or without following procedures:

a) If a certificate of household business registration has been issued without following the prescribed procedures, the district-level business registration authority shall send a notification to the household business and re-issue the certificate of household business registration according to the prescribed procedures;

b) If a certificate of household business registration has been issued without a satisfactory application as prescribed, the district-level business registration authority shall notify that the certificate of household business registration issued without a satisfactory application is invalid, and request the household business to submit a complete application within 30 days from the date of notification in order to be issued with a certificate of household business registration. The household business may include contents of subsequent applications for changes in a single application for registration of changes;

c) If changes to the household business registration information are approved without a satisfactory application, the district-level business registration authority shall notify that the certificate of household business registration issued without satisfactory application is invalid, and issue a certificate of household business registration according to the latest valid application. The district-level business registration authority shall request the household business in writing to submit a complete application within 30 days from the date of request in order to be issued with the certificate of household business registration. The household business may include contents of subsequent applications for changes in a single application for registration of changes.

3. Actions against the issuance of certificate of household business registration in case information in the application for household business registration is inaccurate or untruthful:

a) If an application for household business registration contains inaccurate or untruthful information, the district-level business registration authority shall notify it to the competent authority to take actions in accordance with regulations of law, notify that the certificate of household business registration issued according to the application containing inaccurate or untruthful information is invalid, and request the household business to submit a complete application within 30 days from the date of notification in order to be issued with the certificate of household business registration. The household business may include contents of subsequent applications for changes in a single application for registration of changes.

If the household business fails to submit a complete application as prescribed, the district-level business registration authority requests the household business to submit reports according to Clause 6 Article 16 hereof;

b) If an application for changes to household business registration information contains inaccurate or untruthful information, the district-level business registration authority shall notify it to the competent authority to take actions in accordance with regulations of law, notify that the certificate of household business registration issued according to the application containing inaccurate or untruthful information is invalid, and issue the certificate of household business registration according to the latest valid application. The district-level business registration authority shall request the household business in writing to submit a complete application within 30 days from the date of request in order to be issued with the certificate of household business registration. The household business may include contents of subsequent applications for/notifications of changes in a single application for registration of changes.

4. When a household business is issued with a new certificate of household business registration, the old certificates are no longer effective.