Procedures to establish a real estate brokerage company in Vietnam

The real estate brokerage profession in recent years keeps increasing hotter and hotter in recent years. The changing of real estate causes many risks for business investors as well as those who need to buy real estate to serve their lives. Therefore, the real estate brokerage service has developed as a “lifesaver” to remove these difficulties. However, not everyone knows the conditions and procedures to set up a real estate brokerage business. So, in this article, LSX legal firm would like to inform you: “Procedures to establish a real estate brokerage company in Vietnam”

Legal grounds

• Law on Enterprise 2020
• Law on Real Estate Business 2014
• Decree 01/2021/ND-CP
• Circular 20/2015/TT-BKHDT amended and supplemented by Circular 02/2019/TT-BKHDT guiding business registration
• Other relevant legal documents

Real estate

Real estate means private property in the form of buildings and land. According to Article 5 of the Law on Real Estate Business 2014:

“The types of real estate that put into business under the regulation of this Law (later called real estate) include:

1. Home, the available construction work of organizations, individuals; and

2. Home, construction work forms in the future of organizations, individuals; and

3. Home, construction work is a public asset that is authorized by the state authority to put in business;

4. Countries allowed to transfer, lease, lease rights to land in accordance with the laws of the land, are allowed to use land rights.”

Real estate brokerage

The profession of real estate brokerage in Vietnam was initially spontaneous and often misunderstood by the “land stork”, so this profession was not taken seriously. Real estate brokers use their expertise in real estate, vision, and ability to assess the market to provide the best advice for their customers.

Brokerage performs by a third party with the purpose of creating sympathy as well as understanding related issues between the parties, or solving certain related problems between the two parties. In another word, an intermediate between the purchase-party and the sale-party. Also, brokers generate income through transactions between parties.

On the other hand, Clauses 1 and 2, Article 3 of the Law on Real Estate Business 2014 defines as follows:

“1. Real estate business is the capital investment to carry out the construction operation, purchase, transfer of concessions to sell, transfer; lease, lease, lease for real estate; to implement real estate brokerage services; real estate exchange services; real estate consulting services; or manage real estate for lucrative purposes.

2. Real estate broker is the intermediation of the parties in the purchase, transfer, lease, lease, lease, for the purchase of the real estate.”

Thus, real estate brokerage is performing work for other people whose subjects are different powers related to real estate. The outcome of these activities is the fulfillment of customer requirements such as sale, exchange, lease, and rental contracts with the help of a broker. 

These activities lead to changes in the legal and practical aspects of real estate. The brokers perform their profession to receive remuneration for the above changes through transactions whose subject matter presents the rights to real estate. Real estate brokers play a very important role in today’s economy not only for consumers but also for investors.

Conditions to establish a real estate brokerage company

To establish a real estate brokerage company, organizations and individuals must satisfy certain conditions in Article 62 of the Law on Real Estate Business 2014:

Article 62: Requirements for real estate brokerage service providers

1. Any real estate brokerage service providers must set up the enterprise and there are at least 2 employees obtaining real estate broker license (hereinafter referred to as broker license), excluding cases prescribed in Clause 2 of this Article.
2. Any individual is entitled to provide real estate brokerage services independently provided that he obtains a broker license and pay taxes as prescribed in law on taxation.
3. Any real estate service provider is not entitled to be both a broker and a contracting party in a real estate transaction.

The law also stipulates the conditions for being granted a real estate brokerage practice certificate in Clause 1, Article 68 of the Law on Real Estate Business 2014 as follows:

Article 68. Real estate broker license

1. An individual shall be granted broker license if they:
a) Have full capacity for civil acts;
b) Obtain at least upper-secondary graduation degree;
c) Have passed examination in real estate brokerage knowledge.

Procedures to establish a real estate brokerage company

Step 1: Prepare dossiers

• The application form submits to the business registration office requesting the certificate to establish a real estate brokerage company.
• Draft of company charter.
• List of founders as well as members.
• Authenticated legal papers of members.
• Valid identification papers of the authorized representative and the legal representative.
• Legal capital confirmation document.
• Certificate of business registration (for organizations).
• Investment registration certificate for foreign investors.

Step 2: Submit dossiers

Submit the application at the Business Registration Office of the Department of Planning and Investment at the province level where you plan to locate the head office of your Company.

Currently, there are two forms to submit an application:

• Register directly: apply at the “one-stop” department of the Business Registration Office. However, in Hanoi, this method is no longer applied.
• Online business registration: submit your application on the National Business Registration Portal (Address: https://dangkykinhdoanh.gov.vn). After the online application is valid, you will have to go directly to the “one-stop” department to return the scanned copy (hard copy) when submitting it online. However, this method is relatively complicated, requiring you to have skills and knowledge about registering a business account.

Once you have submitted your application, you will receive a receipt for your application. The usual processing time for applications will be 3 working days.

Step 3: Receive result

According to the schedule on the appointment, you return to the “one-stop” department of the Business Registration Office to receive the results. There are two possible scenarios:

• Dossiers valid: You will receive a Certificate of Business Registration as a result and a notification to the tax authorities.
• In contrast, dossiers invalid: The Business Registration Office will have a document instructing you to amend the dossiers in accordance with the provisions of the law. After the amendments and supplements to your application according to this guide, then resubmit your application as in Step 2.

Step 4: Post-establishment procedures.

Receiving a Business Registration Certificate is just the first step in putting your company into operation. After that, you have to do the following series of procedures:

• Notice the use of the company’s seal sample.
• Bank account notice (if your company registers a bank account).
• Tax procedures such as license declaration and payment of license fees, Tax on corporate headquarters inspection,…
• Trademark protection (if you need it).
• …

After carrying out these procedures, your Company can go into operation.

LSX legal firm’s service on company establishment

When establishing a company, people must carry out the procedure following the law at the competent business registration authority (under the Law on Enterprise 2020). The process of establishing a business includes many different steps and phases. If you are not familiar with the law, this process may take a lot of time.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

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Finally, hope this article is useful for you to answer the question about “Procedures to establish a real estate brokerage company in Vietnam”. If you need any further information, please contact  LSX Law firm: +84846175333 or Email: [email protected]

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