Notes when establishing a household business

1. The objects registered for establishment:    

✔️ According to Article 79 of Decree 01/2021/ND-CP, the objects entitled to establish individual business households are individuals, household members are Vietnamese citizens from full 18 years of age, have the full civil action.

✔️ The representative of household members whose name is on the business license is the owner of the business household.

✔️ A person can only name one business household, nationwide. If this person has been the owner of a business household before, although he has not been in business for a long time, but has not yet dissolved, he cannot register his name on the new household business (if he/she wants to register a new business household, dissolution of old business households).

2. How to dub a business household name:

🔰 The name of the business household must not use the phrase "company", or "enterprise" because it is easy to confuse with the type of business.

🔰 The proper name of a business household must not be the same as that of other registered business households within the district.

🔰 Do not use English to name business households. If used, make sure that there is a dot between the characters.

3. Business location:

   ➥ A business household's location is where the business household conducts business activities. A business household can conduct business at many locations but must choose one location to register the business household's head office and notify the tax administration agency or the market regulatory agency where business is conducted for the remaining business locations.

4. Charter capital:

✔ Currently, the law does not stipulate a minimum or maximum capital for business households. Therefore, how much capital is registered depends on the ability of each person and the size and business line the registrant is aiming for. However, it should be noted: Business household liability for risk is an unlimited liability (responsibility for all acquired assets). Therefore, when deciding to register for a business household, it is necessary to consider the risk later. If the business does not go well, you are responsible for all the assets you have, not just the capital you have registered.

✔ In addition, business households should also register low capital, should not register high capital because tax authorities will rely on the following 3 conditions to apply a monthly flat tax rate for business households:

▪️ High or low capital;

▪️ The business location is in a busy area, with a favorable location, frontage road, or in an alley;

▪️ Goods of household businesses are subject to good sales ability or not.

5. Number of employees:

   ➥ Pursuant to Decree 01/2021/ND-CP, household businesses are not limited in the number of employees.

6. Line of business:

️⛳ Business households have the right to register many industries and occupations that are not prohibited by law.

️⛳ Business households may conduct business in conditional business lines from the time they fully meet the conditions prescribed by law but must ensure that these conditions are met throughout the period of operation.

️⛳ If you want to do any business line, when registering for the establishment, write that line on the application for business household registration or select the industry code you want to register if you go through the online registration procedure.

7. Necessary documents for business household registration:

⏩ The house lease or house loan contract between the landlord and the business household owner must be signed directly, not through an intermediary;

⏩ A copy of the certificate of land use right;

⏩ 2 copies of ID card/ citizen identification of the householder and members of the household jointly contributing capital to establish the business household (if any);

⏩ Degree certificates for conditional occupations (notarized copies).

⇒ Register here for TASCO's earliest advice or contact hotline: 0975480868 (Zalo)

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