A household business is suitable for many small-scale activities with straightforward operations that do not require the complex governance structure of a company.

However, a simpler structure does not mean there are no registration requirements or ongoing obligations. Since 1 July 2025, company and household business registration has been governed by Decree 168/2025/ND-CP and the corresponding forms. Owners should check current requirements before preparing an application, particularly if they have been relying on older guidance.

When is a household business appropriate?

A household business generally suits small operations with straightforward management and limited need to raise capital or establish a more complex structure. Typical examples include retail shops, restaurants, personal services, small studios, small production facilities and family businesses.

Where several people will contribute capital, management rights need to be clearly defined, multiple branches are planned, substantial contracts are expected or personal and business liabilities need to be separated, the owner should also consider incorporating a company. This initial choice affects tax, invoicing, employment, contracts and long-term growth plans.

Check the business name and premises carefully

A household business name should be clear, recognisable and not misleading. Applicants should also check the availability of trade names, trademarks or other identifying signs if they intend to build a lasting brand. Receiving a Household Business Registration Certificate does not guarantee that the name does not infringe another person's intellectual property rights.

The business premises should also be checked before filing. Some addresses may be restricted by planning rules, permitted use, building or apartment regulations, or sector-specific conditions. Activities involving food safety, healthcare, education, accommodation, karaoke, security services, fire prevention and fighting, or other conditional business lines require consideration of the corresponding licences or operating conditions.

Business lines are not merely a formality

Registered business lines should accurately reflect the intended activities. Descriptions that are too general may create difficulties with regulators or counterparties; omissions may require amendments as the business expands.

Owners should ask: will the business sell goods or provide services, undertake production, sell online, employ staff, deliver across provincial boundaries or require sector-specific licences? The answers help identify the initial documentation and obligations to prepare for after registration.

Prepare early for tax, invoices and bookkeeping

After registration, household businesses should address tax, invoicing and revenue and expense records under the rules applicable to household and individual businesses. Electronic invoicing rules were amended during 2025, so owners should not rely solely on word of mouth or outdated guidance.

Depending on scale, the tax administration method and actual activities, a household business may need to retain books, purchase invoices, sales records, premises leases, staff payroll and related documents. Complete records help owners control cash flow and make it easier to respond to enquiries or convert to a company.

Employment and customer data also require attention

Household businesses employing staff should consider working arrangements, pay, working hours, occupational safety and any applicable insurance obligations. Even on a small scale, clear written arrangements help reduce disputes.

Where the business collects customer information such as names, telephone numbers, addresses, purchase histories or payment data, it should store and use that information appropriately. From 2026, the personal data protection framework has been strengthened through the Law on Personal Data Protection, so data management is no longer a concern only for large companies.

Prepare well to avoid repeated amendments

Before registering, owners should prepare a short checklist covering the proposed name, premises, business lines, personal documents, contact details, tax arrangements, invoicing needs, staffing plans and any sector-specific licences. After registration, the certificate, tax notices, premises lease, trading records and important operating documents should be kept in a dedicated folder.

This article provides general information only. Depending on location, business lines and revenue, household businesses should check further guidance from the business registration authority, tax authority or adviser before proceeding.