INDIVIDUAL/FAMILY

HOUSEHOLD AND PRIVATE
ENTERPRISES
GROUP 1

OUTLINE

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

Management and Controlling. Termination . Temporary cessation. I. Definition and Characteristics 2. Individual/family household 1. Establishment and Registration 3.

. Jointly contribute efforts and labor to their common economic activities. (Art 107 – Civil Code 2005) . Have common property. Definition and Characteristics Definition: • Family household’s members: . (Art 106 – Civil Code 2005) • Have a representative to perform in civil transaction for the common interest of the household.1.

.1. Registered in one location. (Art 49. Shall employ up to 10 laborers at most . Have no seal. one household . one group. . Owned by an individual who is a citizen of Vietnam. Have civil liability by recourse to its household property. Definition and Characteristics Characteristics: . .1 – Decree No 43/2010/ND-CP) .

2.Decree No 43/2010/ND-CP) . + Have full legal capacity + Have civil act capacity and households (Art 50.2 . Establishment and Registration Registration: • Vietnamese citizens: + Full 18 years of age or older.1 .Decree No 43/2010/ND-CP) • Business lines: not banned (Art 52.

Order and procedures for registration: Art 52 – Decree No 43/2010 .Business household’s name: comply with Article 56 of Decree No 43/2010. . Establishment and Registration Registration: .2.

Inform the change to the district-level business registration office with which it has registered its business.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: . (Art 55 – Decree No 43/2010) .

Must comply with Art 57 – Decree No 43/2010. Inform the direct managing tax office. Management and controlling. . not exceed 1 year): .FAMILY HOUSEHOLD 3. temporary cessation and termination of business Temporary cessation operation (at least 30 days. . . Inform the district-level business registration office with which it has registered its business.

FAMILY HOUSEHOLD 3. Temporary cessation and Termination of business Cases for termination operation • At the request of the owner’s 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 . Management and Controlling.

When terminates. a business household shall: . Pay all debts. . including tax arrears and unfulfilled financial obligations. (Art 55 – Decree No 43/2010 . Return the original business registration certificate to the district-level business registration office with which it has registered its business.

Example: Salt producing Incense producing .

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

Art 183 .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. a partnership. 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. limited liability company or joint stock company LOE 2014.

quantity and residual value of each type of asset shall also be specified. gold and other asset. which are used for the business operations of an 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 . 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.Investment capital of Enterprise owners • The owner of a private enterprise shall himself/herself register his/her investment capital. freely convertible foreign currencies. for the amount in other assets. • All capital and assets. specifying the amount in VND. including loans and leased assets. the types of asset. The owner of a private enterprise is obliged to register accurately the total investment capital.

performance of other financial obligations prescribe by law • The owner may manage and administer business operation Or Employ another person do so.Management of Enterprise • The owner of a private enterprise as total discretion in making all business decisions of the enterprise. • 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 . deciding the use of profits after payment of taxes.

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. .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.

• After selling his/her enterprise. the seller and creditors of the enterprise. . • The purchaser and seller of an enterprise must comply with the labor law. unless otherwise agreed by the purchaser. • The purchaser of an enterprise shall register for the change of the owner of the private enterprise in accordance with this Law.Sales of Enterprise • The owner of a private enterprise may sell his/her enterprise to another person. 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.

Private enterpirse: One owner One enterprise .

or a household . 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.1.

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 .

. to register • Register at district.3. Business Registration Private Enterprise: Family Household: • Not all the household • All enterprises are business are required required to register. • 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 .