Currently, many people are wondering whether household businesses need to register business or not? The following article will show you specific circumstances in which business registration must be implemented.
According to the law, business means “the continuous conduct of one, several or all of the stages of an investment process, from production to sale of products or provision of services on the market for profit-making purposes”. However, not all activities involving production to sale of products or provision of services and making profit must be registered for business, especially business activities of households.
cases in which business registration is not necessary
According to Decree 39/2007/ND-CP, the cases in which business registration is not necessary include:
- Street vendor, doing business without fixed locations;
- Trading small items with or without fixed locations;
- Selling snacks (foods, drinks) with or without fixed locations;
- Buying goods from many places and selling to wholesalers or retailers;
- Carrying out services such as shoe polishing, lottery ticket selling, key repairing, car repairing, car washing, haircut, painting, photography and other services with or without fixed location.
CASES IN WHICH BUSINESS REGISTRATION IS COMPULSORY ACCORDING TO THE LAW
According to the Enterprise Law 2014, as for small business households, apart from the above cases, they must register their business if regularly using fewer than 10 employees. In case of employing regularly more than 10 laborers, they must register their business in the form of enterprise. Pursuant to Decree No. 185/2013/ND-CP, a fine of between VND 5 million and VND 10 million shall be imposed on an act of doing business without a business registration certificate as prescribed by law.
PROCEDURES FOR INDIVIDUAL BUSINESS HOUSEHOLD BUSINESS REGISTRATION
When doing business registration, individual business households need to prepare the following documents: (1) Application for business household registration; (2) Copy of ID card of individuals participating in household business or household representative; (3) Minutes of individual group meetings on the establishment of business households in cases where business households are set up by a group of individuals.
In some cases, the practising certificate is required before business registration. In addition, depending on the specific industry, the authorities will require legal capital. Thus, business households must prepare carefully before submitting the application in order to avoid prolonging the registration period.
After preparing necessary documents, business households shall submit the valid dossiers to the district People’s Committee. Within 5 working days, the district People’s Committee shall grant business household registration certificates to business households. Due to limited legal knowledge, many people do not register their business even though it is one of the important procedures. Therefore, we need to follow this procedure to avoid legal troubles in the course of business or you may visit a reputable legal expert to get consultancy.
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