Foreign investors establish a real estate business company.

Although according to the WTO commitment schedule, Vietnam does not commit to real estate business services for foreign investors, the Real Estate Business Law clearly stipulates the scope and forms of real estate business for enterprises with foreign investment.

1. Legal Basis:

• Investment Law 2020;

• Enterprise Law 2020;

• Consolidated Document No. 12/VBHN-VPQH of 2020, consolidating the Real Estate Business Law, issued by the National Assembly Office.

2. Conditions for Real Estate Business of Enterprises with Foreign Investment:

• Must be legally established as a business entity under the regulations.

The forms in which foreign-invested companies are allowed to conduct real estate business include:

• Renting houses and construction works and subleasing them;

• If the land is leased by the State, foreign investors are allowed to build housing for rent; build housing or construction works for sale, lease, or lease-purchase;

• Acquiring projects partially or fully to build housing, construction works for sale, lease, or lease-purchase;

• If the land is allocated by the State, foreign investors are allowed to invest in housing for sale, lease, or lease-purchase.

3. Procedures for Establishing a Foreign-Invested Real Estate Business Company:

Step 1: Submit an application for an Investment Registration Certificate to allow the foreign investor to establish a real estate business company.

The application includes:

• A request letter to implement the real estate investment project, following the prescribed form;

• A project proposal with complete information about the project, according to the prescribed form;

• A copy of the legal documents proving the address of the company to be established for real estate business. A notarized copy of personal identification documents if the foreign investor is an individual, or a notarized copy of the valid business registration certificate or other documents proving the legal status if the foreign investor is an organization; a copy of the bank account balance confirmation corresponding to the registered investment capital of the foreign investor establishing the real estate business company, or financial statements or financial support commitments... A technology explanation document in case the real estate business project uses restricted technology transfer.

Submit the application to the Department of Planning and Investment where the main office of the foreign-invested real estate business company is planned to be located.

Step 2: Submit the application for a Business Registration Certificate to establish the foreign-invested real estate business company.

The application includes:

• A registration application form for establishing a foreign-invested real estate business company, according to the prescribed form;

• The company's charter, which includes the business sectors related to the foreign-invested real estate business and full information about the company;

• A list of all investors if the company type is a limited liability company with two or more members, or a list of founding shareholders if the company opts for the joint-stock company type;

• A notarized copy of the valid personal identification documents of all members if the foreign investor is an individual, or a notarized copy of the valid establishment license of all members if the foreign investor is an organization;

• A power of attorney if the foreign investor is not directly submitting the application;

• The investment registration certificate issued in Step 1 by the investment registration authority for the real estate business company.

Submit the application to the Business Registration Division under the Department of Planning and Investment of the province where the foreign investor intends to establish the foreign-invested real estate business company.

Step 3: Carry out activities after company establishment, such as:

• Announcing the company's information;

• Making company seals and notifying the seal sample;

• Purchasing invoices, etc.

For consultation on establishing a foreign-invested real estate business company, please contact us.