Case: I want to sell products on TikTok Shop. So do I need to register a business?
Reply:
Pursuant to Clause 1, Article 6 of the 2005 Commercial Law, a merchant includes a legally established economic organization or an individual who engages in commercial activities on an independent and regular basis and has a business registration. Article 7 of this Law further stipulates that a merchant is obligated to register their business as prescribed by law. In the case of not registering a business, the merchant shall still be responsible for all of its activities as prescribed by the 2005 Commercial Law and other laws.
Regarding commercial activities conducted independently and regularly that do not require business registration, Decree 39/2007/ND-CP stipulates:
An individual engaged in commercial activities is an individual who, on a daily basis, independently carries out one, several, or all of the legally permitted activities of buying and selling goods, providing services, and other profit-making activities, but who is not subject to business registration as prescribed by law on business registration and is not considered a "merchant" as defined by the Commercial Law. Specifically, this includes individuals who engage in the following commercial activities:
Street vending (peddling) refers to the buying and selling activities without a fixed location (buying on the street, selling on the street, or both buying and selling on the street), including the act of receiving books, magazines, and cultural products from merchants authorized to trade in these products under the law for street vending.
Small-scale trading involves buying and selling small items, often without a fixed store.
Snack selling refers to the activity of selling small food items and drinks, often from a mobile stall.
Shuttle trading is the practice of buying goods from one place and selling them in another, often in small quantities.
Providing services such as shoe shining, lottery ticket sales, lock repair, vehicle repair, vehicle parking, car washing, hair cutting, painting, photography, and other services, with or without a fixed location.
Other independent, regular commercial activities that do not require business registration
Mobile business refers to commercial activities that do not have a fixed location.
Therefore, according to the above regulations, selling products on TikTok Shop does not fall under the category of activities that are exempt from business registration. Consequently, individuals or organizations wishing to sell goods on TikTok Shop must complete the business registration process before conducting any sales activities on this platform.
Legal business registration not only ensures that business activities on TikTok Shop are conducted in compliance with regulations but also builds trust and credibility for businesses and households in the eyes of customers. Therefore, individuals and organizations wishing to conduct business on TikTok Shop must fully comply with business registration requirements and business operations as prescribed by law.
The above is FDVN's advisory opinion regarding your consultation request, based on our research of relevant laws and regulations. We hope that FDVN's advisory opinion will be helpful to you.
Le Ha Thanh - FDVN Law Firm
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