1. What is a Household Business? What is a Company?

According to Article 82.1 of Decree No. 168/2025/ND-CP on enterprise registration stipulates: “1. A household business is registered for establishment by an individual or household members, who shall be liable with all of their assets for the household business activities.”

Currently, the law does not provide a specific definition of “company.” According to Law on enterprise 2020 , the term “company” is used to refer to the types of enterprises: Limited liability companies, Joint stock companies, and Partnerships. A company can be understood as an “enterprise” as defined in Article 4.10 of Law on enterprise 2020: “10. An enterprise is an organization having its own name, assets, and transaction office, which is established or registered for establishment in accordance with law for business purposes. It is established and registered under the law with the objective of conducting business.”

2. Why should Households Business in Da Nang convert their business type to Companies?

In Da Nang City, converting a household business into a company is an opportunity for household businesses to enter a more professional business ecosystem. Accordingly, for serious household businesses with a long-term business orientation will clearly see the benefits of this conversion:

• Expanding business scale, increasing workforce, and promptly meeting customer needs;
• Enhancing credibility and accessing to more major distributors. A company has legal status, its own seal, and tax code, enabling it to easily enter into contracts and build trust with partners and customers. Issuing invoices is also a way to prove the origin and quality of goods;
• Easily raising investment capital and obtaining bank loans;
• Facilitating management and accounting operations;

• Being liable only up to the amount of capital contributed;

• Enjoying business support policies such as tax exemptions and reductions, accessing to capital, and training staff.

3. What types of companies can a Household Business in Da Nang convert into?

According to Articles 24 and 27 of Decree No. 168/2025/ND-CP, household businesses  in Da Nang can be converted into the following types of enterprises:

• Sole proprietorship;

• Limited liability company, including: a single-member limited liability company and a multiple-member limited liability company;

• Partnership;

• Joint stock company.

4. What dossiers are required to convert a Household Business in Da Nang into a company?

According to Article 27.2 of Decree No. 168/2025/ND-CP on enterprise registration, the dossier for converting a household business  into a company includes:

• A copy of the Household Business Registration Certificate

• A copy of the Tax registration certificate;

• The company's charter;

• An enterprise registration application;

• A list of members and a list of beneficial owners of the enterprise (if any) (for multiple-member limited liability companies and Partnerships), or a list of founding shareholders, a list of foreign investor shareholders, and a list of beneficial owners of the enterprise (for Joint stock companies);

• If the capital contributing member to establish the company is an organization, it is necessary to supplement: A valid copy of the establishment decision, enterprise registration certificate, and other equivalent documents of the organization;

• A valid copy of the Citizen identification card/passport of the legal representative, members, and shareholders;

• A power of attorney for the applicant (if the legal representative does not directly submit the application);

• A valid copy of the Citizen identification card/passport of the authorized person.

5. What are the procedures for converting a Household Business  in Da Nang into a company?

Step 1: Preparing the dossier

The household business in Da Nang prepares one set of dossier corresponding to each type of enterprise.

Step 2: Submitting the dossier to the Department of Finance

• Submitting the dossier directly to the Enterprise Registration Office – Department of Finance of Da Nang City.
• Submitting the dossier via the National Business Registration Portal.

Step 3: The Department of Finance reviews the dossier and provides the result

Processing time: 5–7 working days from the date of submission.

• If the dossier is valid, the Enterprise Registration Office under the Da Nang Department of Finance will issue the Enterprise Registration Certificate to the converted household business.
• If the dossier is invalid, the Enterprise Registration Office under the Da Nang Department of Finance will issue a written notice stating the reasons for the enterprise to amend their dossier.

Step 4: Dissolving the individual household business

Within 02 working days from the date of issuance of the Enterprise Registration Certificate, the Enterprise Registration Office under the Da Nang Department of Finance shall send a copy of the Enterprise Registration Certificate and the original Household Business Registration Certificate to the commune-level business registration authority where the household business is located to terminate its operation.

Step 5: Publishing an announcement on the National Enterprise Registration Portal

The company must publish an announcement of its establishment on the National Enterprise Registration Portal within 30 days from the date of issuance of the Enterprise Registration Certificate.

6. ​What tasks need to be completed after establising the Company?

• Creating the company seal and signboard;
• Opening a bank account;
• Submitting the initial tax declaration dossier;
• Submitting the license fee declaration;
• Purchasing a digital signature and notifying the issuance of e-invoices;

• Paying social insurance for employees;

• Fulfilling licensing, certification, and capital requirements.

7. FAQ

a. What types of taxes must a company pay?

A company must pay the following taxes: license fee, corporate income tax, value-added tax, personal income tax, import and export duties,...

b. What tax and fee are exempted or reduced for businesses converted from household business in Da Nang?

• Exemption from fees for consulting and guidance on enterprise establishment documents and procedures;

• Exemption from enterprise registration fee and the initial enterprise information disclosure fee;

• Exemption from appraisal fees and the initial enterprise licensing fees for conditional enterprise lines;

• Exemption from license fees for a period of 03 years from the date of first issuance of the Enterprise Registration Certificate;

• Exemption or reduction of land use fees for a certain period in accordance with the provisions of land law;

c. Do newly established enterprises in Da Nang need to purchase e-invoices?

Yes. Enterprises are required to register for the use of e-invoices.

d. Are newly established enterprises in Da Nang required to participate in social insurance?

Yes. Within 30 days from the date of signing an official labor contract with employees, the enterprise must submit social insurance registration dossier for the employees.