5 BENEFITS FROM SWITCHING FROM BUSINESS HOUSEHOLD TO ENTERPRISE

- Exemption of business registration fee and enterprise information provision fee for the first time;

- Free evaluation, fees and charges for the first business license for conditional business lines;

- License fee exemption for a period of 03 years from the date of issuance of the first business registration certificate.

- Exemption or reduction of land use levy for a definite term in accordance with the land law.

In order to enjoy the above series of supports, business households must have continuously engaged in production and / or business activities for at least 1 year up to the date of being granted the first business registration certificate.

In addition, the advantage of this type of business greatly supports the expansion of production and business such as:

1 . Have legal status

- According to the provisions of Clause 3, Article 2 of Circular 39/2016 / TT-NHNN, borrowers at banks are legal entities or individuals. Meanwhile, business households have no legal status, so this is a limitation for business households when they want to borrow money from banks to serve production and business activities ... Meanwhile, enterprises ( Except for private enterprises) has legal status and the right to conduct loan transactions at a bank.

2. To hire many employees

Decree 78/2015 / ND-CP stipulates that business households employing ten or more employees must register for enterprise establishment according to regulations. This means that the law only accepts business households with 9 or fewer employees. Therefore, if you want to hire more employees to expand your business, it will be considered a violation of the law.

With the enterprise model, the current law does not limit the number of employees in the enterprise.

3. Establish more branches, business establishments, representative offices.

4. The advantage of scaling

- The business is not limited in size, capital and business location.

- The production and business are methodical and organized. Have a specific organizational structure and activities.

5. To issue Value-Added invoices to customers and pay CIT based on profit

- Enterprises are allowed to issue VAT invoices to customers to get VAT deduction.

- The enterprise pays corporate income tax according to profit after deducting expenses.

Meanwhile, business households are limited in size and powers by law as follows:

- Only registered for business in one location;

- Only employ less than 10 employees;

- Must be responsible with all its assets for the business.

- No stamp, no legal status
                                    

If you have any questions, do not hesitate to contact us!

TASCO always listens to customers' opinions. Any contributions please contact hotline at 0975480868 or email: mylinh2883@gmail.com

Read more: COMPARISON OF INTERESTS BETWEEN BUSINESS AND ENTERPRISE