CONVERSION FROM HOUSEHOLD BUSINESS TO ENTERPRISE

05/06/2025 03:53 PM 169 Views

1/ TRANSFORMING HOUSEHOLD BUSINESSES INTO ENTERPRISES – AN IRREVERSIBLE TREND

At the 9th session of the National Assembly on May 20, 2025, the Vietnamese government acknowledged the delegates' opinions and agreed to accelerate the roadmap for converting all household businesses into formal enterprises. This transition is tied to the abolition of the fixed tax scheme starting January 1, 2026. From that point, only tax declaration based on actual sales revenue will apply to household and individual businesses.

Converting to a formal enterprise will enable household businesses to legally expand their operations and manage their business more effectively in terms of governance, capital mobilization, and market access.

2/ BENEFITS OF CONVERTING A HOUSEHOLD BUSINESS INTO A COMPANY/ENTERPRISE

When a household business transitions into a formal enterprise, it will gain the following advantages:

In addition, when using ALTAS services, clients will receive a combo package that includes business registration – tax/accounting setup – and 3 months of free legal consultation, ensuring peace of mind during business operations.

3/ TIMELINE FOR CONVERTING A HOUSEHOLD BUSINESS INTO AN ENTERPRISE

Within 5 working days from the time the client provides complete and valid information, ALTAS will finalize all enterprise registration procedures with the Department of Finance and deliver the results as requested. The delivery process will be handled free of charge via VNPost postal service.

4/ REQUIRED DOCUMENTS FROM CLIENTS

To ensure a smooth and prompt transition from a household business to a company, please provide the following basic information:

Current household business details
Projected information of the new enterprise after conversion, such as:
- Charter capital
- Business address
- Company name
- Legal representative
- Business lines after conversion
- Owner / contributing members / shareholders...

Based on this information, ALTAS will prepare the required documentation and complete the legal procedures to obtain the Business Registration Certificate as soon as possible.

5/ SCOPE OF WORK

ALTAS will handle the following tasks:

Consult and verify all necessary information before proceeding
Draft and prepare all relevant documents, including but not limited to:
- Application for enterprise registration
- Company charter
- List of members (for multi-member LLCs or partnerships), list of founding shareholders (for joint-stock companies)
- Information declaration forms
- Authorization letters for submission and result collection
- Other related documents as required
Present the documents to the client for signature
Represent the client in submitting the application to the Business Registration Office
Monitor the process and coordinate until all procedures are completed
Receive and hand over the result to the client as requested

For more information about the benefits and government incentives for converting household businesses into enterprises, feel free to contact us at +84 916 923 235 for support.

CONVERSION FROM HOUSEHOLD BUSINESS TO ENTERPRISE

1/ TRANSFORMING HOUSEHOLD BUSINESSES INTO ENTERPRISES – AN IRREVERSIBLE TREND

Converting to a formal enterprise will enable household businesses to legally expand their operations and manage their business more effectively in terms of governance, capital mobilization, and market access.

2/ BENEFITS OF CONVERTING A HOUSEHOLD BUSINESS INTO A COMPANY/ENTERPRISE

When a household business transitions into a formal enterprise, it will gain the following advantages:

In addition, when using ALTAS services, clients will receive a combo package that includes business registration – tax/accounting setup – and 3 months of free legal consultation, ensuring peace of mind during business operations.

3/ TIMELINE FOR CONVERTING A HOUSEHOLD BUSINESS INTO AN ENTERPRISE

Within 5 working days from the time the client provides complete and valid information, ALTAS will finalize all enterprise registration procedures with the Department of Finance and deliver the results as requested. The delivery process will be handled free of charge via VNPost postal service.

4/ REQUIRED DOCUMENTS FROM CLIENTS

To ensure a smooth and prompt transition from a household business to a company, please provide the following basic information:

Current household business details

Projected information of the new enterprise after conversion, such as:

Charter capital

Business address

Company name

Legal representative

Business lines after conversion

Owner / contributing members / shareholders...

Based on this information, ALTAS will prepare the required documentation and complete the legal procedures to obtain the Business Registration Certificate as soon as possible.

5/ SCOPE OF WORK

ALTAS will handle the following tasks:

Consult and verify all necessary information before proceeding

Draft and prepare all relevant documents, including but not limited to:

Application for enterprise registration

Company charter

List of members (for multi-member LLCs or partnerships), list of founding shareholders (for joint-stock companies)

Information declaration forms

Authorization letters for submission and result collection

Other related documents as required

Present the documents to the client for signature

Represent the client in submitting the application to the Business Registration Office

Monitor the process and coordinate until all procedures are completed

Receive and hand over the result to the client as requested

For more information about the benefits and government incentives for converting household businesses into enterprises, feel free to contact us at +84 916 923 235 for support.