Procedural guidelines on Business household termination

Business household termination procedures follow Decree 168/2025/NĐ-CP regulations starting July 1, 2025. Strict compliance regarding tax debt settlement and financial obligations remains mandatory before notifying authorities. Long Phan Consulting Company provides the following legal analysis of this process.

Requirements for Business Household Termination

Article 104 of Decree 168/2025/NĐ-CP and Decision 2353/QĐ-BTC stipulate specific conditions. A business household termination requires the following:

• Valid Dossier: The submission must contain all legally required documents.

• Debt Settlement: The entity must pay all debts, including tax liabilities and financial obligations, before filing (unless creditors agree otherwise).

• Electronic Submission Standards:

  • Digital documents must match paper document content and naming conventions.

  • Data entry on the Business Registration Information System must match the dossier.

  • Phone numbers and emails must align with the National Enterprise Registration Portal.

  • The household business owner or authorized agent must apply digital signatures.

Competent Authorities

The Commune-level Business Registration Authority handles the business household termination process. The Tax Authority acts as a coordinating body.

• Registration Authority: Receives dossiers and updates legal status.

• Tax Authority: Reviews tax compliance.

• Coordination: The Tax Authority must provide feedback on tax obligations within 02 working days of receiving data via the network.

Business Household Termination Dossier

Decision 2353/QĐ-BTC lists the required components for the business household termination dossier:

• Notification of business household termination.

• Meeting minutes regarding termination (for household businesses established by a group of individuals before Decree 168/2025/NĐ-CP).

• Authorization Documents (if applicable):

  • Authorization letter for individuals (notarization not required).

  • Service contract and introduction letter for organizations.

  • Postal receipt copy with signatures for public postal services.

Note: The authorized person must perform electronic authentication. If electronic ID is unavailable, a copy of a valid ID card is required.

>>> See more at: Business Household to Enterprise Conversion Procedure

Execution Procedure

Applicants may perform business household termination via direct submission/postal service or electronic networks.

Direct or Postal Submission

1. Submission: Send the dossier to the Commune-level Business Registration Authority within 05 working days of settling debts.

2. Data Transfer: The Registration Authority sends data to the Tax Authority.

3. Verification: The Tax Authority responds regarding tax obligations within 02 working days.

4. Result: The Registration Authority updates the status to “terminated” within 05 working days if tax obligations are cleared.

Electronic Submission

1. Login: Access the System using an electronic identity account.

2. Filing: Declare information, upload documents, digitally sign, and pay fees.

3. Coordination: Data transfers automatically to the Tax Registration Application System.

4. Processing: The Authority issues a digital confirmation upon approval or requests modifications for invalid dossiers.

Services at Long Phan Consulting Company

Long Phan Consulting Company offers comprehensive solutions for business household termination. Our services address difficulties in tax debt reconciliation and electronic system compliance.

• Legal Review and Financial Assessment

  • Conduct thorough checks of the current business registration status and tax records.

  • Evaluate outstanding debts, unused invoices, and pending financial obligations.

  • Consult on optimal compliance strategies to minimize administrative risks.

• Tax Authority Representation and Settlement

  • Represent the client in direct work with the Tax Authority for tax closing.

  • Handle procedures for invoice cancellation and settlement of tax liabilities.

  • Manage explanations and provide supplementary documentation upon regulatory request.

• Administrative Filing and Result Management

  • Draft all necessary forms and legal documents required by Decree 168/2025/NĐ-CP.

  • Execute the online submission process via the National Business Registration Portal.

  • Monitor processing status and retrieve the final termination notice.

FAQ: Business Household Termination

Must the original Registration Certificate be returned?

No. Decree 168/2025/NĐ-CP does not require the return of the original certificate. The dossier focuses on the termination notice and digital verification.

What is the processing time?

The total time is 05 working days from the receipt of a valid dossier. This includes the 02 working days allocated for Tax Authority feedback.

Who files if the owner is deceased?

The heir or property administrator files the dossier. A copy of the death certificate or court decision declaring death must accompany the submission.

Can I file at a different location?

Yes. Applicants may file at any Commune-level Business Registration Authority within the same province or city, depending on local data infrastructure.

What is the state fee?

The Provincial People’s Council determines the specific fee. Many localities apply minimal or zero fees for termination.

Conclusion

Correct business household termination prevents legal risks regarding tax arrears. Decree 168/2025/NĐ-CP mandates strict electronic procedures. Contact Long Phan Consulting Company at Hotline 1900636389 for expert assistance.