Business households are a popular business model that is compatible with Vietnam’s socio-economic conditions.
According to statistics, by the end of 2021, there are 5.1 million business households in Vietnam, and this number will continue to grow rapidly in the coming years. However, regulations for establishing a business household still display significant limitations, causing certain difficulties for individuals and households seeking to launch this type of business. Specifically, the law does not specify whether such a procedure can be performed in person or online, and the process varies by locality.
To untie those knots, on 18 April 2023, the Ministry of Planning and Investment issued Circular 02/2023/TT-BKHDT (“Circular 02”) amending and supplementing some articles of Circular 01/2021/TT-BKHDT (“Circular 01”). In which, Circular 02 supplemented regulations about business household registration via the National Enterprise Registration System, which were not specified in Circular 01. This article will present the new regulations for online business household registration.
- Supplementing new definitions of “business household registration”, “business household registration certificate” and “business household registration information system”
These are some basic and necessary terms regarding online business household registration.
According to Circular 02, the above terms are defined as follows:
“Business household registration” means when a business household performs business registration and tax registration with business registration authority in district level where its head office is located. Business household registration includes registration for establishment of business households, registration for adjustment of business household registration contents, and other registration, notification obligations in accordance with laws.
“Business household registration certificate” means a physical or electronic document issued by business registration authority in district level to record all business registration and tax registration information of the business household. Business household registration certificate shall also act as Tax registration certificate of the business household.
“Business household registration information system” means a component of the National Enterprise Registration System developed and operated by the Ministry of Planning and Investment that sends, receives, stores, displays, or performs other functions for business household data serving the operation of business household registration.
- Supplementing regulations on receiving and processing business household registration applications on business household registration information system
Under new regulations, the business registration authority in district level shall receive and log business household registration information to the business household registration system under the National Enterprise Registration System.
Business household registration applications shall be logged in the system when requirements below are met:
- Having sufficient documents as prescribed in Decree No. 01/2021/ND-CP;
- Having fully declared the information of business household in the documents of the business household registration application;
- Having provided the contact address of the person filing the business household registration application;
- Having fully paid the business household registration fee.
Business household registration information on the business household registration information system shall then be transferred to the Tax Registration Application System for coordination and information exchange between the business registration authority at district level and the tax authority.
- Business household code is also the taxpayer identification number of the business household
Business household code is a series of numbers randomly generated by the Tax Registration Application System and transferred to the business household registration information system to grant to business household applicants. Business household code shall be displayed on the Business household registration certificate. This code also acts as taxpayer identification number (TIN) of the business household.
- Backup procedure for business household registration
Backup procedure for business household registration means the registration of a business household that is not performed through the business household registration information system. The backup procedure for business household registration shall apply in the following cases:
- The business household registration information system is under construction or upgrade;
- Business household registration information system encounters technical errors;
- Other force majeure events.
Depending on the estimated completion time of error remediation or construction, upgrade of the business household registration information system, except for force majeure, the Ministry of Planning and Investment shall provide advance notice on estimated completion time to enable business registration authority at district level to approve business household registration by using the backup procedure.
- Business household registration application via electronic information network
Similar to offline registration procedure, the application of business household registration via online must include:
- The application form for business household registration;
- Legal documents of the owner of the business household, members of family household applying for business household registration in case the business household is established by family household members;
- The copy of the meeting minutes of family household members on establishment of business household in case the business household is established by family household members;
- The copy of the power of attorney made by the family household members to authorize a member to act as the owner of the business household in case the business household is established by family household members.
According to the procedure via electronic information network, instead of physical documents, the aforementioned application will be provided in electronic form, possibly in the format “.doc”, “.docx”, or “.pdf”. The application of business household registration obtained via electronic information network shall have the same legitimacy as physical application of business household registration.
- Data transfer, update, supplement of household registration information into the household business registration information system
Business registration authority at the district level is responsible for transferring data, updating, and supplementing insufficient business household registration information of business households locally stored into the business household registration information system. Information transferred, supplemented, and updated into the business household registration information system must match original information in business household registration applications.
- Provision of business household registration information on business household registration information system
Organizations and individuals can look up business household registration information for free at www.dangkykinhdoanh.gov.vn, including: name of business household, business household registration number, business household code, head office address, business lines, name of business household’s owner.
- Payment methods for business household registration fee
Business household registration fee can be paid directly at the district level business household registration office or transferred to bank accounts of business registration authority at district level or using online payment services on National Public Service Portal. Business household registration fee shall not be refunded if business household registration is rejected.
- Updates to the business household registration application forms
The application forms for business household registration specified in Circular 01 will be replaced by new forms specified in Circular 02.
- When will Circular 02 take effect?
Circular 02 will come into effect from 1st July 2023.
Note: This article is provided for reference purposes only and does not constitute legal advice. Depending on each specific matter from time to time, the content presented above may no longer be appropriate. For detailed advice, please contact LMP Lawyers.