A business household is registered by one individual or by members of one family household, and is liable with all of its assets. Several persons who contribute capital and are not from the same family cannot set up one household together. A business household may register several business locations (Decree No. 168/2025/NĐ-CP, amended by Decree No. 296/2026/NĐ-CP).
Household taxes (from 01/01/2026):
- Annual revenue up to VND 1 billion: no VAT or personal income tax to pay.
- Over VND 1 billion: self-declare and pay tax; use electronic invoices.
- No more presumptive (lump-sum) tax and no more business license fee.
A company (limited liability or joint-stock) is a legal entity liable within the capital contributed, suitable when several persons contribute capital, customers are enterprises, or the business needs to bid, raise capital. In return, it must keep accounting books, financial statements and finalize its taxes.
Where a foreign person contributes capital, the investment and enterprise establishment procedures apply.