Hello Lawyer X. I intend to start a business in real estate, I would like to know is it mandatory to set up a business in real estate? What types of real estate business are there? Ask for an answer from a lawyer. I sincerely thank!
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Legal grounds
Law on real estate business 2014
Decree 02/2022/ND-CP
What is real estate business?
Pursuant to the provisions of Clause 1, Article 3 of the Law on Real Estate Business 2014
Real estate business is the investment of capital to perform the following activities:
– Build, buy, receive transfer for sale, transfer;
– Lease, sublease, lease purchase of real estate;
– Real estate brokerage services; real estate trading floor services;
– Real estate consulting or real estate management services for profit.
Conditions for real estate business from March 1, 2022.
Article 4 of Decree 02/2022/ND-CP stipulates that organizations and individuals trading real estate must satisfy the following conditions:
(1) Enterprises or cooperatives must be established.
(2) Information must be made public.
Information that must be disclosed includes:
- Information about the enterprise, including name, head office address, contact phone number, name of legal representative)
- Information on real estate put into business as prescribed in Clause 2, Article 6 of the Law on Real Estate Business 2014, information about mortgage of houses, construction works, real estate projects put into business ( if any), information on the quantity and type of real estate products being traded, quantity and types of real estate products sold, transferred, leased and purchased and the remaining quantity and types of products being continued. business.
(3) Only trade in real estate that fully meets the conditions specified in Article 9, Article 55 of the Law on Real Estate Business 2014.
Real estate business is required to establish a business?
Article 10 of the Law on Real Estate Business 2014 as amended by Point a, Clause 2, Article 75 of the Law on Investment 2020 has the following provisions:
- Organizations and individuals dealing in real estate must establish an enterprise or a cooperative (hereinafter referred to as an enterprise) and have a legal capital not lower than VND 20 billion, except for the case specified in Clause 1 of this Article. 2 This.
- Organizations, households and individuals that sell, transfer, lease, lease-purchase real estate on a small and irregular scale are not required to establish an enterprise but must declare and pay tax in accordance with law. the law.
- The Government shall detail this Article.
As such, you are not required to establish a business when doing real estate business when selling, transferring, leasing, or leasing small-scale real estate, infrequently.
When is the real estate business not required to establish a business?
Pursuant to Article 5 of Decree 02/2022/ND-CP, in the following cases when an organization, household or individual sells, transfers, leases, leases-purchase real estate on a small or irregular basis: conditions specified in Article 4 of Decree Decree No. 02/2022/ND-CP are not required, including conditions on not having to establish an enterprise:
(1) Organizations, households and individuals that sell, lease, lease-purchase houses and construction works under lawful ownership, transfer, lease or sub-lease land use rights under the right to use land. its legal.
(2) Agencies or organizations selling houses and construction works, transferring land use rights due to bankruptcy, dissolution or division in accordance with law.
(3) Agencies or organizations that sell, transfer, lease, lease-purchase real estate as public property in accordance with law.
(4) Credit institutions, foreign bank branches, asset management companies of credit institutions (AMCs), asset management companies of Vietnamese credit institutions (VAMC) perform selling houses, construction works, transferring land use rights, transferring real estate projects being used as guarantees or mortgages for debt recovery in accordance with the law.
(5) Organizations, households and individuals selling houses, construction works, transferring land use rights under decisions of courts or competent state agencies when settling disputes, complaints, denounce.
(6) Organizations, households and individuals that sell, lease, lease-purchase or transfer real estate they invest in and build, which are not real estate construction investment projects for business according to regulations. provisions of the law.
It can be seen that in the above cases, it is quite reasonable to not have to establish an enterprise because this is a small and irregular business such as households and individuals transferring real estate under the right of use and ownership.
What types of real estate business are there?
According to Clause 1, Article 11 of the Law on Real Estate Business 2014, domestic organizations and individuals may conduct real estate business in the following forms:
a) Buy houses, construction works for sale, lease, lease purchase;
b) Renting houses and construction works for sublease;
c) With respect to land allocated by the State, it is permissible to invest in the construction of houses for sale, lease, or lease-purchase; transfer the land use right in the form of subdivision, sale of the ground in accordance with the provisions of the law on land; invest in the construction of technical infrastructure for cemeteries and graveyards to transfer land use rights associated with such technical infrastructure;
d) For land leased by the State, investment in construction of houses for lease may be made; invest in the construction of houses and construction works other than houses for sale, lease, or lease-purchase;
dd) For land recognized by the State as land use rights, they may invest in the construction of houses and construction works for sale, lease, or lease-purchase;
e) For land transferred from organizations, households or individuals, they may invest in the construction of houses and construction works for sale, lease, or lease purchase;
g) For land leased from organizations, households or individuals, they may invest in the construction of houses and construction works for lease according to the land use purposes;
h) Accept the transfer of all or part of the real estate project of the investor to build houses or construction works for sale, lease, or lease-purchase;
i) Receive the transfer or lease of land use rights from organizations, households or individuals to invest in the construction of technical infrastructure for the transfer or lease of land already having such technical infrastructure.
Related article:
- Disclosure of real estate information put into a business in Vietnam
- New policies affecting the real estate market 2022 in Vietnam
- Procedures for setting up a real estate brokerage company in Vietnam
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Frequently asked questions
Real estate business does not meet the conditions prescribed by the Law on Real Estate Business.
Decide the investment in real estate projects that are not in accordance with the master plan or plan approved by a competent state agency.
– Failure to disclose or incompletely and truthfully disclose information about real estate.
– Fraud and deception in real estate business.
Illegally mobilizing and appropriating capital; using capital mobilized from organizations and individuals and advances from buyers, lessees, and lessees to purchase future real estate for improper purposes as committed.
– Failure to perform or incompletely fulfill financial obligations to the State.
– Issue and use real estate brokerage practice certificates in contravention of regulations.
Collecting fees, charges and other money related to real estate business in contravention of law.
Types of real estate put into business in accordance with the Law on Real Estate Business (hereinafter referred to as real estate) include:
– Houses, construction works are available of organizations and individuals;
– Houses, construction works formed in the future of organizations and individuals;
Houses and construction works are public property permitted by competent state agencies to be put into business;
Types of land that are allowed to be transferred, leased or sub-leased according to the provisions of the law on land are allowed to trade in land use rights.
Conclusion: So the above is Is a real estate business in Vietnam required to set up a business?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
