Question: “Hello Lawyer, I am planning to open a small mobile phone repair shop, operating alone without hiring employees. Please advise me on the procedures to establish a household business?
Answer:
1.What is a household business?
According to Clause 1, Article 82 of Decree No. 168/2025/ND-CP: “A household business is registered for establishment by an individual or members of a household and is liable with all of its assets for the household’s business activities. Where a household business is registered for establishment by household members, the members must authorize one member in writing to act as the household business representative during its operation. The written authorization of household members to one member as the household business representative must be notarized or certified in accordance with law.”
Based on the information you provided, you intend to do business on your own, without employees. In this form, you fall under the case of an individual registering to establish a household business.
Note: When registering a household business, the individual is fully liable with all of their assets for any obligations arising from business activities.
2.Điều kiện thành lập hộ kinh doanh
- The business lines registered must not be prohibited from business investment;
- The individual must be a Vietnamese citizen aged 18 or older, with full civil act capacity, and eligible to establish a household business;
- The name of the household business must comply with Article 86 of Decree No. 168/2025/ND-CP as follows::
- A household business must have its own name. The name consists of two elements in order:
- The phrase “Household Business”;
- A proper name of the household business.
The proper name may use letters in the Vietnamese alphabet, the letters F, J, Z, W, and may be accompanied by numbers and symbols.
- The name must not use words or symbols that violate historical traditions, culture, ethics, or national customs.
- The name must not contain “company”, “corporation”, “group”, or “enterprise”.
- The name must not use the trade name, trademark, or geographical indication of another organization, individual, or household business already protected, unless consent is given by the owner.
- The Vietnamese name of the household business must not duplicate the Vietnamese name of an already registered household business within the same commune-level administrative unit.
- In addition to a Vietnamese name, a household business may register a foreign language name or an abbreviation.
- Having a valid household business registration dossier;
- Paying the prescribed household business registration fee.
Note: Each individual may only establish one household business nationwide, but may contribute capital, purchase shares, or acquire equity in enterprises in their personal capacity. However, a person who registers a household business cannot simultaneously be the owner of a private enterprise or a general partner of a partnership, unless with the unanimous consent of the remaining partners.
Legal basis: Article 84 and Clause 2, Article 85 of Decree No. 168/2025/ND-CP.
3.Household business registration dossier:
- Application form for household business registration (Form No. 1, Appendix II issued with Circular No. 68/2025/TT-BTC)
Note: The head of the household business must accurately declare their personal information in the registration dossier, consistent with the information stored in the National Population Database, and consent to share such information with the commune-level business registration authority and competent state authorities for state management of household business registration.
If the household business owner authorizes another person or organization to carry out the registration procedure:
- If authorizing an individual, the dossier must include a written authorization and a copy of the authorized person’s legal identity documents. This authorization does not require notarization or certification.
- If authorizing an organization, the dossier must include a copy of the service contract with the organization providing registration services, the organization’s introduction letter for the individual directly handling the procedure, and a copy of that individual’s identity documents.
Legal basis: Clause 2, Article 99; Article 93; and Clause 1, Article 92 of Decree No. 168/2025/ND-CP
4.Procedures for dossier submission:
Step 1: Submit 01 dossier set at the commune-level business registration authority where the household business is headquartered, via one of the following methods:
- Direct submission at the commune-level business registration authority.
- Submission by postal service.
- Submission via electronic information network.
Step 2: Upon receiving the dossier, the commune-level business registration authority will issue a receipt and appointment for returning results.
Within 03 working days from the date of receiving a valid dossier, the authority will issue one of the following decisions:
- If the dossier meets conditions: Issue the Certificate of Household Business Registration and notify the tax authority directly managing the household business.
- If the dossier does not meet conditions: Notify the applicant in writing, clearly stating the reasons and required amendments or supplements.
Note: The deadline for amending or supplementing a household business registration dossier is 60 days from the date the commune-level authority issues the request
Legal basis: Article 99; Clause 4, Article 95; and Article 94 of Decree No. 168/2025/ND-CP.
Consulting reference: Business Law Services
