INDIVIDUAL/FAMILY

HOUSEHOLD AND PRIVATE

ENTERPRISES
GROUP 1
 OUTLINE

I. Individual/ family household

II. Private enterprise
III. Differences between family
household and private enterprise
 I. Individual/family household

1. Definition and Characteristics

2. Establishment and
Registration
3. Management and Controlling;
Temporary cessation;
Termination
1. Definition and Characteristics
Definition:

Family households members:

- Have common property.
- Jointly contribute efforts and labor to their
common economic activities.
(Art 106 Civil Code 2005)

Have a representative to perform in civil

transaction for the common interest of the
household.
(Art 107 Civil Code 2005)
1. Definition and Characteristics
Characteristics:

- Owned by an individual who is a citizen

of Vietnam, one group, one household .
- Registered in one location.
- Shall employ up to 10 laborers at most
- Have no seal.
- Have civil liability by recourse to its
household property.

(Art 49.1 Decree No 43/2010/ND-CP)

2. Establishment and Registration
Registration:

Vietnamese citizens:
+ Full 18 years of age or older.
+ Have full legal capacity
+ Have civil act capacity and households
(Art 50.1 - Decree No 43/2010/ND-CP)

Business lines: not banned

(Art 52.2 - Decree No 43/2010/ND-CP)
2. Establishment and Registration
Registration:

- Business households
name:
comply with Article 56
of Decree No 43/2010.

- Order and procedures

for registration:
Art 52 Decree No
43/2010
FAMILY HOUSEHOLD
3. Management and Controlling, Temporary
cessation and Termination of business
Management and controlling:
operation
Agreed upon by members of family household

Dispute among members: intervened by law.

Changing registered business registration

contents:

- Inform the change to the district-level

business registration office with which it
has registered its business.
(Art 55 Decree No 43/2010)
FAMILY HOUSEHOLD
3. Management and controlling, temporary
cessation and termination of business
Temporary cessation
operation
(at least 30 days, not exceed 1 year):

- Inform the district-level business

registration office with which it has
registered its business.

- Inform the direct managing tax office.

- Must comply with Art 57 Decree No

43/2010.
FAMILY HOUSEHOLD
3. Management and Controlling, Temporary
cessation and Termination of business
Cases for termination
operation

At the request of the owners free will

The owner is dead

A business household has its business

household registration certificate revoked in
the cases in Art 61 Decree No 43/2010
When terminates, a business household
shall:

- Return the original business registration

certificate to the district-level business
registration office with which it has
registered its business.

- Pay all debts, including tax arrears and

unfulfilled financial obligations.

(Art 55 Decree No 43/2010

Example:

Salt producing Incense producing

II. Private enterprises

1. Definition
2. Registration
3. Investment
capital
4. Management
5. Lease
6. Sale
Definition

An enterprise owed by an individual who is liable for

all activities of the enterprise with all his/her assets
Private enterprises may not issue securities of any
type
Each individual may establish only one private
enterprise. The owner of a private enterprise must
not concurrently be a business household owner or
a partner in a partnership
Private enterprises may not contribute capital for
the establishment of or purchase shares or capital
contributions in, a partnership, limited liability
company or joint stock company

LOE 2014, Art 183

Investment capital of Enterprise
owners
The owner of a private enterprise shall
himself/herself register his/her investment capital.
The owner of a private enterprise is obliged to
register accurately the total investment capital,
specifying the amount in VND, freely convertible
foreign currencies, gold and other asset; for the
amount in other assets, the types of asset, quantity
and residual value of each type of asset shall also be
specified.
All capital and assets, including loans and leased
assets, which are used for the business operations of
an enterprise, shall be recorded fully in its
accounting books and financial statement in
accordance with law
May increase/reduce capital amount invested in the
business operation of the enterprise. (must be
recorded in accounting book)
Owner may reduce the investment capital below the
amount of investment capital registered only after
registration with the business registration agency
Art 184
Management of Enterprise

The owner of a private enterprise as total

discretion in making all business decisions
of the enterprise; deciding the use of profits
after payment of taxes; performance of
other financial obligations prescribe by law
The owner may manage and administer
business operation
Or
Employ another person do so.
Owner must be plaintiff; defendant or
person with related right and obligations in
arbitration or court proceeding in dispute
related to the enterprise
Owner is the at law-representative of the
enterprise

Art 185
Lease of Enterprise

The owner of a private enterprise may lease

his/her whole enterprise provided that a
written notice and a notarized copy of the
lease contract shall be sent to the business
registration agency and the tax agency within
3 working days after the lease contract
becomes effective. During the lease term, the
owner of the private enterprise shall remain
responsible before law as the owner of the
enterprise. The rights and responsibilities of
the owner and the lessee with respect to the
business operations of the enterprise shall be
provided in the lease contract.
Sales of Enterprise

The owner of a private enterprise may sell

his/her enterprise to another person.
After selling his/her enterprise, the owner of
the private enterprise shall remain liable for
all debts and other property obligations of
the enterprise incurring before the date of
handing over the enterprise, unless
otherwise agreed by the purchaser, the
seller and creditors of the enterprise.
The purchaser and seller of an enterprise
must comply with the labor law.
The purchaser of an enterprise shall
register for the change of the owner of the
private enterprise in accordance with this
Law.
Private enterpirse:

Oneowner Oneenterprise
1. Business Subject

Private Enterprise:
Family Household:
Owned by an Owned by one
individual who is a individual who can be
Vietnamese citizen or Vietnamese citizen
a group of individuals or foreigner.
or a household
Enterpris Household
e Family
2. Business Scale

Private Enterprise:
Family Household:
Smaller scale Larger scale
( no more than 10
employees)

Have to register a Unlimited business

fixed location
location
Unlimited scale
Limited scale capital capital
Enterpris Household
e Family
3. Business Registration

Private Enterprise:
Family Household:
Not all the household All enterprises are
business are required required to register.
to register

Register at district- Register at provincial-

level business level business
registration office registration office.

Have the official seal

Not have a seal
of management.
Household District-level
Family business
registration office
REGISTER
ED
 Provincial-level
Enterprise business registration

REGISTER
ED
Household Enterpris
Family e