1. What is real estate business?
Real estate business is the investment of capital to carry out construction, purchase, and transfer activities for sale and transfer; lease, sublease, lease purchase of real estate; performing real estate brokerage services; real estate trading floor services; Real estate consulting or real estate management services for profit.
2. Conditions of real estate business organizations
– Must establish an enterprise according to the law on enterprises and must have legal capital not less than 20 billion VND (previously 6 billion VND), except in the following cases:
+ Organizations and households that sell, transfer, lease, and lease purchase real estate on a small, irregular basis are listed below.
+ Real estate service business organizations specified in Chapter IV of the Law on Real Estate Business 2014.
– Real estate businesses that have legal capital according to the above regulations must be responsible for the honesty and accuracy of the legal capital.
– The above legal capital level is determined based on the charter capital of the enterprise according to the law on enterprises.
Enterprises do not have to carry out registration procedures to confirm their legal capital levels.
** Organizations and households that sell, transfer, lease, or lease purchase real estate on a small scale or on an irregular basis do not have to establish a business but must declare and pay taxes according to the provisions of law, including including:
– Organizations and households sell, transfer, lease, or lease purchase real estate without investing in real estate projects for business purposes, and in cases where households sell, transfer, lease, or let Lease purchase of real estate due to investment in real estate projects for business but the project has a total investment of less than 20 billion VND (excluding land use fees).
– Organizing the transfer of land use rights, selling houses and construction works due to bankruptcy, dissolution or separation.
– Credit institutions, foreign bank branches, asset management companies of credit institutions (AMC), asset management companies of Vietnamese credit institutions (VAMC) and other organizations , other individuals transfer land use rights, transfer real estate projects, sell houses, construction works under guarantee or mortgage to recover debt.
– Organizations and households transfer land use rights, sell houses and construction works to handle assets according to decisions of the Court or competent state agencies when handling disputes and complaints, denounce.
– Organizations and households invest in housing construction for sale, lease, or lease purchase without having to establish a business according to the provisions of housing law.
– Agencies and organizations that are permitted by competent state agencies to transfer land use rights and sell state-owned houses and construction works according to the provisions of law on public asset management.
– Organizations and households sell, transfer, lease, and lease purchase real estate owned by them.
