Doing Business Without a License – Things to Know

Doing business without a license is becoming a trend for many individuals and small businesses in the current era. Not needing to register for a license helps reduce administrative procedures, save costs and time, and create favorable conditions for entrepreneurs to test business ideas. In this article, Long Phan will analyze in detail the regulations on business registration and cases where business registration is not required for customers to know.

Why must you register your business?

Business registration is a mandatory requirement under the Law on Enterprise 2020. Business registration procedures help ensure legal rights for businesses and consumers. Licensed business activities will create reputation and trust with customers.

Main benefits of business registration:

• Recognized by law as a legal entity: When registering a legal business, the enterprise will be recognized by law as an independent entity with legal status. This helps businesses have clear legal rights and obligations in all transactions and business activities;
• Advantages of borrowing capital from banks: Legal businesses can easily access capital sources from financial institutions such as banks. Having a business license helps businesses build a clear credit profile, thereby increasing their ability to borrow capital and mobilize finance for production and business activities;
• Easily expand business relationships with partners: Legal business helps businesses build reputation and trust with partners. Business partners, suppliers or customers will feel more secure when cooperating with a licensed business, helping to expand opportunities for long-term and sustainable cooperation;
• Avoid risks of administrative sanctions: Registered businesses will minimize the risk of administrative sanctions. Complying with legal regulations helps avoid unnecessary violations and penalties related to illegal business activities.

According to the provisions of Article 27 of the Law on Enterprise 2020, enterprises must register with the competent business registration agency before conducting business activities. Failure to register will be penalized according to Decree 122/2021/ND-CP.

Professions that do not require business registration and do business without a license

Pursuant to Clause 2, Article 79 of Decree No. 01/2021/ND-CP, Article 3 of Decree 39/2007/ND-CP, some business activities are exempt from registration including:

• Households engaged in agricultural, forestry and fishery production;
• Street and snack vendors;
• Travel trade, mobile business;
• Low-income services according to regulations of the Provincial People’s Committee;
• Working in low-income services.

However, the above cases must still be registered if they operate conditional businesses or employ 10 or more workers. Low income level is determined according to each locality’s regulations.

Is it mandatory for business households to register their business?

According to Clause 1, Article 79 of Decree 01/2021/ND-CP and the Law on Enterprise 2020, mandatory registration depends on the scale and form of business.

Cases where business registration is required include:

• Have a fixed location: Business households must have a stable location to carry out business activities;
• Employing 10 or more employees: If employing 10 or more employees, the business household must register its business;
• Business in conditional industries: Business households in industries requiring special licenses must comply with legal regulations;
• Revenue above the prescribed level: If revenue exceeds the local prescribed threshold, the business household needs to officially register;
• Regularly operating at one location: Business households must operate continuously at a fixed location, not temporarily or mobily.

The business household registration process is carried out at the district People’s Committee or the Finance and Planning Department. Processing time is within 3 working days from the date of receipt of complete and valid documents.

Prestigious and professional business license consulting service in Long Phan

At Long Phan, we provide comprehensive consulting services on business registration procedures with a team of experienced experts who will provide customers with the most effective and quickest support.

Long Phan’s services include:

• Consulting on choosing the right type of business to suit your needs;
• Support in preparing business registration documents;
• Representing customers to carry out registration procedures with competent state agencies;
• Support customers in handling cases of incomplete or invalid documents;
• Consulting on resolution methods when disputes arise;
• In-depth advice on the rights and obligations of businesses after business registration.

To ensure your business operations fully comply with regulations, business registration is essential. With a team of experienced experts, Long Phan will provide optimal and time-saving solutions, helping customers complete business registration procedures quickly and according to regulations. If you need in-depth support from our team of experts, do not hesitate to contact us immediately via the hotline 0906735386.