In the context of the Covid-19 pandemic, the Vietnamese market in general and the real estate market in particular are still interested by many foreign investors. So, accordingly regulations, can FDI enterprises do real estate business? Let’s find out with LSX Lawfirm.
Legal grounds
Law on Real Estate Business 2014
Investment law 2020
Can FDI enterprises do real estate business?
Accordingly the provisions of Clause 3, Article 11 of the Law on Real Estate Business 2014, FDI enterprises may trade in real estate in the following forms:Firstly, renting houses and construction works for sublease;
Secondly, to invest in building houses for rent; invest in the construction of houses and construction works other than houses for sale, lease, or lease-purchase for land leased by the State;
Thirdly, to receive the transfer of the whole/part of the real estate project of the investor to build houses or construction works for sale, lease, or lease-purchase;
Fourthly, to invest in the construction of houses for sale, lease, or lease-purchase for land allocated by the State;
Lastly, to invest in building houses and construction works for business in accordance with land use purposes for leased land in industrial parks, industrial clusters, export processing zones, hi-tech parks and economic zones.
Accordingly, FDI enterprises just have right to trade in real estate with the above 05 forms, do not have right to do real estate business with other forms.
Procedures for setting up FDI enterprises in real estate business
Basically, the procedure for establishing a foreign-invested real estate business is similar to that of other foreign-invested enterprises. Specifically, the order and procedures shall comply with the provisions of the Investment Law and Decree 31/2021/ND-CP as follows:
Step 1: Please approve the investment policy
Depending on the size and characteristics of the investment project, the decision on investment policy will get approval by the National Assembly, the Prime Minister or the provincial People’s Committee.
Step 2: Apply for an Investment Certificate
– Licensing agency: Department of Planning and Investment.
– Expected implementation time:
+ For projects subject to approval of investment policies: 05 working days from the date of receiving the written approval of investment policies.
+ For projects not subject to approval of investment policies: 15 working days from the date of receipt of complete dossiers.
– Profile include:
+ A written request for implementation of the investment project;
+ Documents on investor’s legal status: Copy of identity card or passport (Applicable in case the investor is an individual); Copy of Business Registration Certificate (Applicable in case the investor is a legal entity).
+ Documents proving the investor’s financial capacity
+ Proposed investment projects include
In case the investment project does not request the State to allocate or lease land or permit the change of land use purpose, a copy of the paper on land use rights; or another document determining the right to use the site shall be submitted for implementation. current investment project.
The explanation of the technology used in the investment project, for the project subject to appraisal and consultation on technology, in accordance with the law on technology transfer.
BCC contract for investment projects in the form of BCC contract.
Other documents related to the investment project, requirements on conditions and capacity of the investor as prescribed by law (if any).
Step 3: Set up a business
– Licensing agency: Department of Planning and Investment.
– Implementation time: 03 working days.
– Implementation profile:
+ Application for business registration;
+ Charter of the company.
+ List of members (for limited liability companies with two or more members, partnerships), list of shareholders (for joint stock companies). Copy of legal papers of individuals or organizations contributing capital to establish the company.
+ Copy of Investment Certificate and Copy of legal papers of the legal representative.
Step 4 : Announce the content of business registration information:
Information on business registration shall be publicly announced on the National Portal within 30 days; from the date of issuance of the Business Registration Certificate.
Step 5: Engrave legal entity seal
After the establishment of the enterprise, the enterprise shall engrave its seal. Accordingly the provisions of the Enterprise Law 2020, enterprises do not need to notify the seal sample on the National Business Registration Portal but can use it immediately.
Step 6: Open an account to transfer direct investment capital
Accordingly the provisions of the Enterprise Law, foreign investors need to contribute capital within 90 days from the date of granting the Certificate of Business Registration. Therefore, immediately after the establishment of the company, investors need to open an account to transfer direct investment capital.
Although the Investment Law 2020 has removed the legal capital requirement of VND 20 billion for real estate business, investors need to determine a reasonable amount of capital so as not to affect the business when the company goes into business. work.
Step 7: Complete the following procedures for business establishment
After establishing the company, the investor carries out the procedures for registering to buy digits, paying license tax, declaring license tax, issuing invoices, declaring tax, etc.
Contact LSX Law firm
Finally, hope this article can FDI enterprises do real estate business is useful for you.
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Related questions
Existing buildings of organizations or individuals.
Off-the-plan buildings of organizations or individuals.
Buildings which are public properties to be put on the market permitted by competent agencies.
Types of lands whose land-use rights the law permitted to transfer (hereinafter referred to as land), lease, sublet .
Firstly, The law asked the real estate projects shall comply with land-use planning, urban planning, rural construction planning and follow competent agencies approved the plan approved.
Secondly, Procedures for real estate projects put on the market. It shall complied with regulations of laws on investment, land, construction, urban area, housing and corresponding regulations of law.
Finally, Real estate projects shall be carried out on schedule with quality assurance as prescribed in laws on construction.
Conclusion: So the above is Can FDI enterprises do real estate business in Viet Nam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
