How many students do I need to register my business to teach?

Since Circular 29/2024 took effect, a series of teachers and tutoring centers have sought to register their businesses. Regarding this content, many people have asked the question: how many students do teachers have to teach before they have to register their business?

Regulations on registration of tutoring business

Article 6 of Circular 29/2024 stipulates that organizations or individuals organizing extra teaching and learning activities outside of school that collect fees from students must register their business in accordance with the provisions of law.

Tighten extracurricular teaching activities outside of school. (Illustration photo)

At the same time, Clause 2, Article 79 of Decree 01/2021 on business registration stipulates 5 cases where business households do not need to register for business, including:

• Households engaged in agricultural, forestry, fishery and salt production;
• Street vendors, snack vendors, itinerant traders;
• Itinerant Businessman;
• Seasonal business people;
• Low income service workers.

Based on the above content, even if a teacher only teaches a small number of students (1 or 2 students) and charges money, he/she must register his/her business in accordance with regulations.

In addition, Clause 1, Article 80 of Decree 01/2021 stipulates that the law does not prohibit teachers from establishing business households. However, Clause 3, Article 4 of Circular 29/2024 stipulates that teachers at public schools are not allowed to participate in the management and operation of extra-curricular teaching.

Business registration papers

Pursuant to Article 7, Circular 105/2020 of the Ministry of Finance, after registering for tutoring business, business households and enterprises need to carry out the first tax registration procedures as follows:

For tutoring businesses, the following documents must be prepared and submitted to the tax office:

• Tax registration form; Copy of business registration certificate (if any);
• Copy of valid citizen identification card for individuals with Vietnamese nationality;
• Copy of valid passport for individuals with foreign nationality or individuals with Vietnamese nationality living abroad.

For businesses, it is necessary to prepare the following documents to submit to the direct tax authority, including:

• Tax registration form;
• Copy of business registration certificate;
• Copy of ID card/passport of legal representative;
• Power of attorney (if any).

In addition, in some cases other documents will be required, teachers need to comply with the regulations:

• Decision to appoint director and chief accountant: If the enterprise already has a director and chief accountant, it is necessary to provide their appointment decision;
• Fixed asset depreciation method registration form: If the enterprise has fixed assets, it needs to register the fixed asset depreciation method;
• Declaration of registration of accounting form and invoice use: Enterprises need to register accounting form (Vietnamese accounting or international accounting) and register to use invoices (electronic invoices or paper invoices);
• Application for tax code.

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