In which cases are businesses not allowed to receive land transfers?

Businesses are not allowed to receive land transfers in certain cases. Mastering these regulations helps businesses avoid unnecessary legal risks when conducting land use rights transfer transactions. In the article below, Long Phan Consulting Company will analyze in detail cases where businesses are not allowed to transfer land use rights according to Land Law 2024 and related issues, thereby providing useful solutions for customers.

In case the business is not allowed to receive land transfers

According to Clause 8, Article 45 of the Land Law 2024, cases where businesses are not allowed to receive land transfers include the following cases:

• Protection forest land and special-use forest land of individuals, except in cases where the land use purpose is changed according to land use planning and plans approved by competent authorities;
• Economic organizations with foreign investment capital that are not allowed by law to receive transfer of land use rights.

Accordingly, Clause 1, Article 28 of the Land Law 2024 stipulates that economic organizations with foreign investment capital may receive land use rights transfer in the following cases:

• Foreign-invested economic organizations are entitled to receive land use rights transfer in industrial parks, industrial clusters, and high-tech zones;
• Economic organizations with foreign investment capital may receive transfer of investment capital which is the value of land use rights according to Government regulations;
• Foreign-invested economic organizations receive capital contributions in the form of land use rights;
• Economic organizations with foreign investment are entitled to receive land use rights according to the results of successful conciliation of land disputes recognized by the competent People’s Committee; agreements in mortgage contracts to handle debt; Decisions of competent state agencies on resolving land disputes, complaints and denunciations about land, judgments and decisions of the Court, and decisions to execute judgments of judgment enforcement agencies that have been implemented; decisions or rulings of Vietnam Commercial Arbitration; Document recognizing the results of the auction of land use rights in accordance with the law; Documents on division and separation of land use rights in accordance with the law for groups of land users who share the same land use rights.

In summary, businesses need to pay special attention to cases where land transfer is not allowed. Mastering these regulations helps businesses make land investment decisions carefully and effectively, avoiding potential legal risks.

What conditions do businesses receiving agricultural land transfer need to meet?

According to the provisions of Clauses 1, 6, 8, Article 45 of the Land Law 2024, enterprises are allowed to receive transfer of agricultural land use rights. However, to receive transfer, businesses need to have an agricultural land use plan approved by the district People’s Committee. The agricultural land use plan must have the following main contents:

• Location, area, land use purpose;
• Agricultural production and business plans;
• Investment capital;
• Land use term;
• Land use progress.

Compliance with these conditions is mandatory to ensure that the transfer transaction is carried out legally and is valid.

Notes for businesses when receiving land use rights transfer

When performing land use rights transfer transactions, businesses need to pay attention to the following issues:

• Carefully check information about land use rights: Enterprises need to carefully check information related to the land plot, including land use rights certificates, ownership of houses and other assets attached to land (Red Book), land origin, land use history, legal status (whether there is a dispute, distraint, mortgage or not) and other restrictions (if any).
• Verify land use planning: Enterprises need to check information about land use planning of the area where the land plot intended to be transferred is located. This helps businesses know the planned future use of the land, development projects that may affect the land plot, and restrictions on construction or development.
• Assess the current status of the land plot: Enterprises should directly survey the current status of the land plot, including location, boundaries, actual area, land quality (for agricultural land), status of existing structures on the land (if any) and other factors that may affect land use.
• Clearly agree on the terms in the transfer contract: A land use rights transfer contract is a document that regulates the relationship between the transferor and the transferee. Businesses need to ensure that the contract is in writing, fully signed by all parties, and the terms are clearly agreed upon.
• Carry out land change registration procedures: After signing the notarized transfer contract, the enterprise needs to carry out land change registration procedures at a competent land registration authority to become a legal land user.
• Note about financial obligations: Enterprises need to learn and fully fulfill financial obligations related to land use rights transfer transactions, including income tax from transfer (if any), registration fees and other fees as prescribed by law.

Complying with the above notes will help businesses carry out land use rights transfer transactions safely, effectively and legally, minimizing possible risks.

Consulting services on procedures for transferring land use rights of businesses at Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive consulting services for businesses in the process of receiving land use rights transfer. With a team of experienced experts and a deep understanding of land law, we are committed to providing customers with optimal and effective solutions. Services include:

• Consulting on cases where businesses are not allowed to receive land transfers.
• Consulting on conditions for transferring agricultural land and other types of land.
• Legal appraisal of the land plot expected to be transferred, risk assessment.
• Drafting and appraising land use rights transfer contracts.
• Consulting on procedures for transferring land use rights and supporting the implementation of administrative procedures at competent state agencies.
• Consulting on tax issues and fees related to transfer transactions.
• Representing customers to participate in negotiations and resolve disputes (if any) related to land use rights.
• Consulting and answering other related issues.

With practical experience and a deep understanding of land law regulations, Long Phan Consulting Company is committed to supporting customers in carrying out procedures for transferring land use rights quickly, safely and effectively.

Frequently Asked Questions

Below are some frequently asked questions about cases where businesses are not allowed to receive land transfers, customers can refer to:

For economic organizations with foreign investment capital, what specific Vietnamese laws restrict the transfer of land use rights?

Regulations are often contained in the Law on Investment, Land Law and implementation guidance documents. They may be related to the form of investment, investment industry, geographical location of the land (e.g. border area, islands), and other specific conditions that foreign investors must meet.

If a business accidentally receives a transfer of land use rights that is not permitted by law, what will the legal consequences be?

Legal consequences may include the transfer transaction being invalidated, the business may be forced to return the land, be fined for administrative violations, and may have difficulty reclaiming the amount paid.

In addition to checking the Red Book, what other factors should businesses pay special attention to during the legal appraisal process?

Businesses need to pay attention to the dispute history of the land plot, mortgage or distraint status with competent authorities, unfulfilled financial obligations related to land (for example, land use fees, land taxes), and other restrictions that may be recorded on the Red Book or in cadastral records.

Where and how can businesses check land use planning information in Vietnam?

Planning information can be checked at the Urban Management Department or Natural Resources and Environment Department of the district People’s Committee where the land is located, or through local online planning information portals (if any). Enterprises need to request official information in writing to have a legal basis.

If a business leases land, are there any restrictions similar to those for transferring land use rights?

Yes, for land lease, especially state land lease or land lease in special areas, there may also be certain restrictions on the tenant, lease term, land use purpose and other conditions according to the provisions of Vietnamese law.

Can changing an enterprise’s business registration help the enterprise qualify for the transfer of a type of land that was not previously allowed?

Changing business registration may have an impact on the ability to receive land transfer if the new business line is more suitable for the land use purpose and related legal regulations. However, this needs to be considered specifically in each case and comply with the approved land use planning.

Conclude

For detailed advice on cases where businesses are not allowed to transfer land use rights and related legal issues, please contact Long Phan Consulting Company via the hotline: 0906735386 for timely and professional support.