Is it necessary to register a business when selling iced tea?

Individual business households have not been clearly defined by any document, but in Clause 1, Article 79 of Decree 01/2021/ND-CP, it is mentioned and can be understood that individual business households include the following characteristics: the following points:

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- Established by one or more registered individuals. If it is multiple individuals, these are household members.

- The person who establishes a household business must be responsible with all his/her assets for the business activities of his/her individual business household.

- The head of household is defined as the person who registers the household business or is the person authorized by other members of the household to act as a representative.

Regarding the right to establish a business household and the obligation to register a business household, Clause 1, Article 80 of Decree 01/2021/ND-CP stipulates as follows: “Individuals, household members being Vietnamese citizens with potential full civil act force under the provisions of the Civil Code has the right to establish households business.”

However, also in this regulation, not all cases have the right to register households business, those who do not have the right to register households business include:

- Minors, those with limited or incapacitated civil act capacity, those with difficulties in perception and behavior control.

- Persons who are being examined for penal liability, detained, served prison sentences, administrative handling measures, or are banned from holding certain positions, practicing professions or doing certain jobs.

- Other cases.

Meanwhile, according to the old regulations in Article 67 of Decree 78/2015/ND-CP, those who do not have to register for business are not specified. At the same time, with the business lines specified in Clause 2, Article 79 of Decree No. 01/2021/ND-CP, the following lines of business are not required to be registered:

- Households engaged in agricultural, forestry, fishery and salt production;

- Street vendors, snacks, trip traders, mobile business, seasonal, low-income service providers. In which, the low income level will be regulated by the Provincial People's Committee and applied throughout the province.

However, in the above cases, if the business lines are subject to conditional investment, business registration is still required.

At the same time, in Article 3 of Decree 39/2007/ND-CP, the Government details 06 cases where business registration is not required, which are individuals engaged in commercial activities, not being called "traders" according to regulations. of the Commercial Law includes:

- Peddling: is the activity of buying and selling without a fixed location, including the receipt of books, newspapers, magazines, and cultural products from traders licensed to trade in these products for sale. algae;

- Small business: Is the purchase and sale of small and odd items with or without a fixed location;

- Selling snacks: selling gifts, cakes, food, drinks, water goods with or without a fixed location;

- Trading from afar: buying goods from other places on each trip to sell to wholesalers or retailers;

- Services: Shoe shine, lottery ticket sales, lock repair, car repair, parking, car wash, haircut, painting, photography and other services with or without a fixed location...

Thus, selling iced tea is a type of business that falls under the case of selling snacks and is not required to be registered as a business in accordance with the law.