Is it mandatory to prove the location when registering the household business?

From the end of 2020, my family has intended to open a small-scale grocery store but has not been able to. Because of the process when I applied, the business registration agency asked me to submit relevant documents such as the certificate of land use right or the lease contract for the business location. So, please let me know if the requirement of the Business Registration Authority on submitting those types of documents, is correct. Because according to my understanding, currently, this content is not available when registering a business household.

FDVN Opinions:

In principle, the founder of a business household shall declare the business household registration file by himself and take legal responsibility for the legitimacy, truthfulness, and accuracy of the information declared in the business household registration dossier.

Currently, in Clause 2, Article 87 of Decree No. 01/2021/ND-CP of the Government on business registration, effective from January 4, 2021, a business household registration dossier includes:

a) The application form for household business registration;

b) Legal documents of the owner of the household business or family household members applying for household business registration;

c) The copy of the minutes of meeting of family household members on establishment of household business in case the household business is established by family household members;

d) The copy of the letter of authorization made by the family household members to authorize a person to act as the owner of the household business in case the household business is established by family household members.

Besides, according to Clause 1 and Clause 2, Article 82 of Decree No. 01/2021/ND-CP:

“1. Certificates of household business registration shall be issued to household businesses that are duly established and operating under this Decree. A household business shall be issued with the certificate of household business registration if all of the following conditions are satisfied:

a) The registered business lines are not banned;

b) The name of the household business is conformable with regulations of Article 88 hereof;

c) The application for household business registration is valid;

d) Fees for household business registration are fully paid.

2. The certificate of household business registration is issued according to information in the application for household business registration, which is provided by the household business founder.”

 Thus, it is not stipulated in the current laws that the business household registration dossier must contain a certificate of land use right or a contract to rent a business location. Thus, it is unlawful for the business registration office of the district to require you to submit the above documents.

Đinh Thị Thông – FDVN Law Firm