Building Foundations: Establishing Your Company or Individual Business Household

I. What is a sole proprietorship family business?

A private enterprise is a form of business owned by an individual or a group of people, including individuals who are Vietnamese citizens over 18 years old, have full civil capacity, or are owned by households. Own and be responsible for all of your assets for business purposes. activities.

Each person is only allowed to establish one personal professional household nationwide.

Commercial activities of individual households can only directly issue value-added invoices.

Individuals and household members who are Vietnamese citizens over 18 years old have full legal capacity, civil act capacity, have the right to establish business households and must register business households according to regulations.

II. Rights and obligations of professional individual household heads:

Business owners must fully fulfill tax obligations, financial obligations and business activities of the business in accordance with the law.

The owner of a business household represents the business household as a plaintiff in resolving civil cases, plaintiffs, defendants, people with related rights and obligations before Arbitrators, Courts and other rights and obligations. The law has other provisions.

Family business owners can hire other people to manage and operate the family business's business activities. In this case, the head of the household and members of the household participating in the household registration are still liable for debts and other property obligations arising from the commercial activities.

The owner of the business household and members of the household participating in the business household registration are responsible for the business activities of the household business.

Other rights and obligations as prescribed by law.

III. ACC private household establishment service process:

Step 1: Advise entrepreneurs on regulations related to business establishment
Step 2: Draft the documents and give them to the business person to sign.

Step 3: ACC will submit the application on your behalf and receive the results.

Step 4: Give the registration certificate to the contractor.

Step 5: Consulting after establishment.

Professional personal household creation profile includes:
Application for household business registration.

Copy of identity card/citizen identification card of the professional householder.

Copy of household member's ID card/citizen identification card. 

Copy of meeting minutes of household members. 

Documents are submitted to the District Business Registration Office where the individual professional household resides.

Contract to rent a professional home location

Some information to provide:

Company name, company address.

Field of activity.

The company's capital.

Full name, number, date of issuance of ID card of the head of household or household representative.

Residential address of the individual or household representative.

IV. Why should entrepreneurs use ACC's consulting services to build their personal business nest?

Be ready to take responsibility if the fault belongs to ACC.

Commitment to full package fee and no additional fees.

Free consulting support before and after completion 24/7.

ACC is responsible for explaining and explaining tax accounting records when state agencies request to prepare accounting data.

ACC is committed and always responsible for keeping your accounting information confidential even after terminating the contract to provide accounting services.

V. Q&A

1. What is the difference between establishing a company and an individual business household?

• Company: A company is a legal entity separate from its owners, often with limited liability for its shareholders. It can be structured as a corporation, limited liability company (LLC), partnership, or sole proprietorship. Companies require formal registration, have complex ownership structures, and may involve more extensive legal and financial responsibilities.

• Individual Business Household: An individual business household typically refers to a small-scale, informal business run by a single individual or a family. It is often unregistered, and the business owner is personally responsible for all aspects, including finances and liabilities. It's a simple and low-cost way to start a small business.

2. What are the advantages of establishing a company?

Establishing a company offers several advantages:

• Limited Liability: Shareholders in corporations and members in LLCs generally have limited personal liability, protecting their personal assets from business debts and legal issues.

• Credibility: A registered company often appears more credible and trustworthy to clients, partners, and investors than an unregistered individual business.

• Access to Capital: Companies can raise capital more easily by selling shares or attracting investors.

• Tax Benefits: Companies may benefit from various tax advantages, including deductions and tax planning opportunities.

• Transferability: Ownership in a company is transferable, making it easier to sell or transfer the business.

3. What are the advantages of running an individual business household?

Operating an individual business household has its advantages, including:

• Simplicity: It's a straightforward and low-cost way to start a business with minimal paperwork and administrative requirements.

• Full Control: The business owner has complete control over all aspects of the business, from decision-making to finances.

• Privacy: There is often less public disclosure of business information compared to registered companies.

• Quick Start: You can start an individual business household quickly, without the need for formal registration.

• Flexibility: You have the flexibility to adapt and change your business without the constraints of a formal corporate structure.

4. What factors should I consider when deciding between a company and an individual business household?

When deciding between a company and an individual business household, consider these factors:

• Liability: If you want personal liability protection, consider establishing a company. An individual business household exposes your personal assets to business risks.

• Complexity: Companies involve more administrative tasks, such as registration, compliance, and financial reporting, while individual business households are simpler to manage.

• Business Goals: Consider your long-term business goals. If you plan to attract investors, scale the business, or have complex ownership structures, a company may be more suitable.

• Finances: Evaluate your financial resources. Companies may have higher startup costs and ongoing operational expenses, while individual business households are often more cost-effective.

• Legal and Tax Advice: Consult with legal and tax advisors to understand the implications of each choice based on your specific circumstances and local regulations.

Ultimately, the decision between establishing a company or an individual business household depends on your business objectives, risk tolerance, financial situation, and legal considerations.