BUSINESS REGISTRATION FOR PRIVATE TUTORING OUTSIDE SCHOOL PREMISES: LEGAL ASPECTS TO NOTE

Private tutoring, as defined in Article 2.1 of Circular No. 29/2024/TT-BGDDT, refers to teaching activities conducted outside the official instructional time of subjects in the general education curriculum or continuing education programs at lower and upper secondary levels, as promulgated by the Ministry of Education and Training. Tutoring activities not organized by schools (i.e., private tutoring outside school premises) are widespread throughout the country. Starting from February 14, 2025, there have been significant legal changes that individuals and organizations should be aware of. 

1. Definition of Private Tutoring Outside School Premises  

According to Article 2.1 of Circular No. 29/2024/TT-BGDDT, private tutoring is teaching conducted outside the instructional time prescribed in the official school schedule. Private tutoring outside school premises refers to such activities not organized or administered by the school.  

2. Fundamental Principles of Private Tutoring Outside Schools 

All private tutoring must comply with several fundamental legal principles, including: 

Firstly, ensure voluntariness. Tutoring may only take place when the student has a need and voluntarily wishes to participate, with the consent of their parent or legal guardian. Organizations and individuals providing tutoring must not use any form of coercion to compel students to attend. 

Secondly, ensure appropriate teaching content. Tutoring content must not contravene Vietnamese laws, and must not contain bias related to ethnicity, religion, occupation, gender, or social status. The official curriculum prescribed by the school must not be reduced for the purpose of being included in tutoring sessions.  

Thirdly, ensure the educational purpose. Teaching and learning activities must contribute to the development of students’ qualities and competencies; they must not interfere with the implementation of the school’s official education program or the teaching responsibilities of school teachers. 

Fourthly, ensure that the duration, schedule, location, and form of tutoring are appropriate for the psychological and physical development of the students, and safeguard their health. Tutoring activities must comply with legal regulations on working hours, overtime, and other relevant laws on security, order, safety, environmental hygiene, and fire prevention at the tutoring venue. 

3. Prohibited Cases of Private Tutoring  

Under Circular 29/2024/TT-BGDDT, the following are strictly prohibited: 

• Tutoring primary school students (except for training in arts, sports, or life skills). 

• Teachers currently teaching at schools are not allowed to provide paid tutoring outside the school for students whom they are assigned to teach under the school’s official education plan. 

• Teachers of public schools are not allowed to manage or operate tutoring activities conducted outside the school; however, they may participate in providing such tutoring. 

4. Requirements for Organizing Tutoring Activities  

Organizations or individuals conducting tutoring outside of schools (hereinafter referred to as “tutors”) must not only comply with the general principles of tutoring and avoid prohibited cases, but also fulfill the following requirements: 

Firstly, business registration is mandatory: Tutors must register either as a business entity or a household business in accordance with the Law on Enterprises 2020 and Decree No. 01/2021/NĐ-CP to legally operate tutoring activities. 

Secondly, tutoring activities must be publicly disclosed. Tutors are required to publish, either on an electronic information portal or by posting at the tutoring premises, the following information: the subjects being offered; the duration of tutoring for each subject and grade level; the location, method, and schedule of tutoring sessions; the list of tutors involved; and the tuition fees. This disclosure must be made prior to enrolling students in any tutoring classes. 

Thirdly, individuals providing tutoring must possess good moral character and have professional qualifications appropriate to the subject they intend to teach. 

Fourthly, teachers who are currently teaching at a school and also organize tutoring activities outside the school are required to report such activities to the head of the school, including the Principal, Director, or an equivalent position. 

In addition, the collection and management of tutoring fees must comply with legal regulations. The tuition fees for out-of-school tutoring shall be reasonably agreed upon between the student’s parent or guardian, the student, and the tutoring provider. 

5. Notes on Business Registration for Tutoring Activities 

Legal business registration is mandatory for tutoring activities outside schools. Below are key considerations: 

a. Business Structure: 

Tutors may choose between:  

• Enterprise (e.g., LLC): Suitable for larger-scale operations involving multiple teachers or branches.

• Household Business: Appropriate for individuals running small-scale tutoring classes. 

b. Eligible Registrants: 

Any individual or organization not restricted under Article 17 of the Law on Enterprises 2020 may register a business. 

For the household business model, individuals or members of a household who are Vietnamese citizens with full legal capacity as prescribed by the Civil Code have the right to establish a household business for tutoring purposes, except in the following cases: minors; persons with limited legal capacity; persons who have lost legal capacity; persons with cognitive or behavioral difficulties; persons under criminal investigation, temporary detention, or serving a prison sentence; persons subject to administrative sanctions at compulsory detoxification centers or compulsory education institutions; or persons prohibited by a court from holding certain positions, practicing certain professions, or performing certain jobs, as well as other cases as prescribed by law. 

Individuals or members of a household, as prescribed above, are only allowed to register one household business nationwide and may not concurrently be the owner of a private enterprise or a general partner in a partnership (unless unanimously agreed upon by the other general partners). 

It should also be noted that in the case where the tutor is a teacher from a public school, they may participate in providing tutoring outside the school, but they are not allowed to manage or operate such tutoring activities. 

c. Capital Considerations 

Currently, there is no legal regulation specifying a minimum or maximum capital requirement for establishing a tutoring business, whether in the form of an enterprise or a household business. Therefore, the amount of capital registered depends on each individual’s financial capacity and the scale of the tutoring operation.  

In cases where the tutor is an individual seeking to register a private enterprise, become a general partner in a partnership, or establish a household business, they should be aware of the legal risk of unlimited liability—meaning they will be personally liable for all obligations of the tutoring business with their entire assets. 

d. Business Line: 

Tutors may register under business code 8559 – Other Education Not Elsewhere Classified, as per Vietnam’s sector classification. 

e. Business Location: 

The location must meet legal standards on safety, public order, fire prevention, and must be legally owned or leased under a valid contract. 

Circular 29/2024/TT-BGDDT has established clear legal grounds for private tutoring activities outside the school system. These activities are no longer informal and must comply with detailed regulations on qualifications, operational procedures, transparency, and financial management. Anyone intending to engage in such activities should carefully study the legal requirements to operate lawfully and protect both their interests and those of the learners. 

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