Where to register a sole proprietorship is a question that everyone is interested in when they want to register a business. A business license is a type of document that allows individuals and organizations to conduct business activities when they fully meet the conditions for business registration according to the provisions of law. Therefore, before conducting business activities, individuals and organizations must register for a business license. For different types of businesses, the agencies that receive documents and issue business licenses are different. Readers can refer to the article “Where to register a sole proprietorship according to regulations?” by Viet My to learn about the legal regulations on sole proprietorship business licenses.

1. Detailed regulations on individual business household registration in 2024

A business household is a type of business that is favored by many people because of its popularity and simpler operating policies than other types. A business household operates with a small amount of capital, suitable for families with moderate economic conditions who do not place too much emphasis on capital turnover.

When starting a business, many people often wonder whether to start a business or register an individual business household based on the scale of the business or the advantages and disadvantages of each type of business. … Normally, the following individuals and households must register as private enterprises, not corporations or enterprises.

1.1 Details of individual business household registration procedures in 2024

Step 1: Prepare an individual business household registration file according to Circular 02/2023.

Currently, the private enterprise registration file is quite simple, including:

Application for business household registration.
Valid copies of the owner’s identification documents such as ID card/citizen identification card/passport
Tax registration form (tax registration certificate is issued at the same time as the tax registration certificate).

Step 2: Submit the application online via the professional household registration information system

Step 3: Pay the business registration fee according to current regulations.

Step 4: Receive the professional household registration certificate.

Step 5: Request the re-licensing person for conditional business lines.

1.2 Form of submitting application for individual business household registration in 2024

The household registration book of an individual business household is submitted directly or by post to the Public Administration Department of the People’s Committee at the district level. However, currently, most localities across the country require that the application for business household registration be submitted via the Online Public Service Portal of that province/city.

The procedure for registering a business household is stipulated in Decree 01/2021/ND-CP, which does not contain any regulations stipulating that this procedure must be registered online.

However, currently, the procedure for registering a business household in large provinces and cities such as Hanoi and Ho Chi Minh City requires online registration.

Accordingly, online registration of a business household will be carried out on the Online Public Service Portal of the province or city where the business household is headquartered.

1.3 Time for registration of individual business households in 2024

Upon receiving the dossier, the regional business registration authority shall issue a receipt and issue a business household registration certificate to the business household within 3 working days from the date of receipt of a valid dossier, if any. Meeting the following conditions:

• The registered industries and occupations are not prohibited from commercial investment;
• The name of the business household is fixed according to the provisions of Article 88 of Decree 01/2021/ND-CP on business registration;
• Full payment of business household registration fees according to current regulations in 2024.

In case the dossier is invalid, within 3 working days from the date of receipt of the dossier, the district-level business registration authority must notify in writing the applicant or the person establishing the business establishment. The notice must clearly state the reasons and request changes and additional documents (if any).

If after 3 working days from the date of submitting the application for business registration, you do not receive the business registration certificate or do not receive a notice requesting changes or additions to the business registration application, the person who prepared the business registration application will not receive it. Business households have the right to complain and denounce according to the provisions of law on complaints and denunciations.

Periodically, in the first working week of each month, the district-level business registration agency sends the list of registered business households of the previous month to the tax authority at the same level, the business registration office and the specialized management agency at the same level.

1.4 Agency receiving registration of individual business households

According to Clause 1, Article 87 of Decree 01/2021/ND-CP, business household registration is carried out at the district-level business registration agency where the business household has its head office.

Pursuant to Article 14 of Decree 01/2021/ND-CP, the Business Registration Agency is regulated as follows:

“The Business Registration Agency is organized into provinces and centrally run cities (hereinafter referred to as provincial level) and districts, towns and cities under provinces (hereinafter referred to as provincial level). Including:

a) At the provincial level: Business Registration Office under the Department of Planning and Investment (hereinafter referred to as Business Registration Office).

The Business Registration Office may arrange points to receive dossiers and return results to the Business Registration Office at locations in the province;

b) At the district level: The Finance – Planning Department is under the District People’s Committee (hereinafter referred to as the District Business Registration Agency)”

Thus, the district-level business registration agency is the Finance – Planning Department under the District People’s Committee. However, currently with the “one-stop” mechanism, business registration procedures do not have to be submitted directly to the Department of Planning and Finance but through the Public Administration Department (One-stop Department) of the District People’s Committee.

The dossier will be transferred from the Public Administration Department to the specialized agency, the Finance – Planning Department, for processing.

2. Where to register a sole proprietorship according to regulations?

We will answer the question below:

Citizens can submit an application for registration of a sole proprietorship at the district-level business registration office where the business is located.

In addition to submitting the application directly, citizens can carry out the household registration procedure for private enterprises online on the public service page of the Department of Planning and Investment of the province/city. After registration, the application will be sent to the Department of Finance – Planning or the Economic Department of the People’s Committee at the relevant district level for review.

If the application is valid, the district-level business registration office will send a notice to the business registration account of the household owner to set the date of issuance of the license. If the application does not meet the requirements, needs to be completed or is rejected, the owner will also receive a direct notice via the business registration account.

3. Notes when registering a sole proprietorship in 2024

In general, registering a sole proprietorship is simpler than establishing a business because it is less bound by a certain framework. But when implementing the process, obstacles multiply. Because if there is a framework, there are written regulations, but if there is no framework, it depends on human factors.

In general, in the process of establishing a sole proprietorship, depending on the representative handling the application, some problems will have different solutions. For example, the decree does not prohibit naming a sole proprietorship in English, however, regardless of the People’s Committee at any level, English names will not be accepted. Not all popular committees provide instructions on how to correct the name by adding a period between the characters.

Note on the registered subjects

According to Article 79 of Decree 01/2021/ND-CP, the subjects entitled to establish a sole proprietorship are individuals and household members who are Vietnamese citizens aged 18 or older and have full business capacity. complete civil acts.

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

A person can only have one company in their name nationwide. If this person is the owner of a previous household company, even though it has been operating for a long time but has not been dissolved, this person cannot be named in the new household company (to register a new business) the old household business must be dissolved).

Note on naming a household business

Similar to establishing a business, a household business also has its own name.

The name consists of 2 components: “Business household + Proper name
The name should not use the term “company” or “enterprise” because this can easily lead to confusion with the type of business.
The proper name must not be the same as the proper name of another business household registered in the district.
Do not use English to name the business household. If used, make sure there is a period between the characters.

Notes on business registration location

The location of the business household is where the business household conducts its professional activities. The business household can conduct business in many places, but must choose the location to register the head office of the business household and must notify the tax authority, the market management authority where the business household conducts other business activities. location.

In case this address is a rented or borrowed house, it is necessary to clearly verify whether anyone has established a business at this address? If so, have they dissolved that company? To verify this, the owner should be asked to go to the District People’s Committee to inquire. If the company owner has not been dissolved, the owner can submit an application to the District People’s Committee to dissolve the company on the grounds that the company owner has left and is no longer performing his/her duties here.

Notes on capital when registering a sole proprietorship

Currently, the law does not stipulate a minimum or maximum capital for a sole proprietorship. Therefore, the amount of registered capital depends on the capacity of each person and the scale and field that the registrant is aiming for. However, it should be noted:
Being responsible for the risks of a sole proprietorship is unlimited responsibility (being responsible for all assets acquired). Therefore, when deciding to start a business, you need to consider future risks. If your business does not do well, you need to be responsible for all your assets, not just the capital you have saved.

Note the maximum number of workers in a professional household

According to previous regulations, the maximum number of workers that a professional household is allowed to employ is 9 workers. However, with Decree 01/2021/ND-CP, professional households are no longer limited in the number of workers.

Note on business registration lines

Business households are allowed to register for many lines of business that are not prohibited by law.

Business households are allowed to operate in conditional investment and business lines from the time they meet all the conditions prescribed by law, but must ensure that these conditions are met throughout the operation.

If you have a need to do business in any line of business, when registering for establishment, note that line of business in the Business Household Registration Form or select the line of business code you want to register if you perform the online registration procedure.

Notes when preparing documents for business household registration

The house lease or loan contract between the owner and the trader must be signed directly, without an intermediary;

• Notarized copy of the land use right certificate;
• 2 notarized copies of the ID card/citizen identification card of the household owner and members of the household contributing capital to establish a family business (if any);
• Degrees of qualified professions (notarized copies).

The above clearly states the regulations on where to register a sole proprietorship. If you still have questions, please contact VIET MY LAW AND ACCOUNTING for further answers. Or if you want to establish a sole proprietorship but find the procedures cumbersome and complicated, you can also use and refer to Viet My’s sole proprietorship registration service.