Conditions for businesses to extend land use rights

Conditions for businesses to extend land use rights is an issue that needs attention for businesses operating in Vietnam. When the land use term is about to expire, businesses need to clearly understand the conditions and procedures for extension to ensure uninterrupted production and business activities. This article by Long Phan Consulting Company will provide detailed information about the conditions for businesses to extend land use rights.

Conditions for businesses to extend land use rights

To be considered extend land use rights, businesses need to meet the following conditions:

1. Enterprises need to continue using land after the land allocation or land lease term expires.
2. Extension period:

• Land use extension is carried out in the last year of the land use term;
• Submit application for extension no later than 6 months before the expiration of the land use term.

3. The enterprise has fulfilled its financial obligations related to land use, including land use fees, land rent, taxes and other fees.
4. During the process of using land, the enterprise does not violate the provisions of land law.
5. In case of using land to implement an investment project, the project will be allowed to extend its operating period by the competent authority.

The above conditions are the basis for competent state agencies to consider extending land use rights for businesses. Full compliance with these conditions helps ensure the legal rights and interests of businesses during the land use process.

>>> See more: Enterprises receiving land transfer for projects: Procedures?

The time limit for businesses to extend land use rights

Pursuant to Point c, Clause 1, Article 172 of the Land Law 2024 stipulates: “When the term expires, if the land user has a need to continue using the land, the State shall consider extending the land use term, but not exceeding the term specified in this clause”.

Accordingly, the term of land allocation and land lease of enterprises is stipulated as follows:

• The term of land allocation or land lease to implement investment projects using land is considered and decided according to the operating term of the investment project or application for land allocation or land lease but must not exceed 50 years.
• For projects with an operating term of over 50 years according to the provisions of the Law on Investment, the land allocation and land lease term shall be according to the term of the project but not exceeding 70 years.
• In cases where an investment project is not required, the land use term is considered based on the application for land allocation or land lease but must not exceed 50 years.

Thus, the term of land use rights extension depends on the previous term of the project whose land use rights are requested to be extended.

Businesses need to prepare documents to extend land use rights

Pursuant to Clause 1, Article 64 of Decree 102/2024/ND-CP, the application for extension of land use rights includes:

• Application for extension of land use according to Model number 08 in the Appendix issued with this Decree.
• One of the certificates specified in Clause 21, Article 3 or Clause 3, Article 256 of the Land Law.
• Decisions to allocate land, decisions to lease land, and decisions to allow change of land use purpose by competent state agencies according to the provisions of land law over time.
• Document from a competent authority permitting the extension of the investment project’s operating term or showing the investment project’s operating term in accordance with the law on investment in case of using land to implement an investment project.

Enterprises need to fully prepare the above documents to ensure that the process of applying for term prices goes smoothly and quickly.

>>> See more: Procedures for extending land use rights for businesses A-Z.

Consulting services on conditions for businesses to extend land use rights

Long Phan Consulting Company provides professional consulting services on procedures and conditions for extending land use rights for businesses. Our services include:

• Research and evaluate legal documents and land use status of enterprises.
• Detailed advice on conditions for extending land use rights for businesses.
• Draft and complete applications for extension of land use rights.
• Enterprise representatives carry out procedures to extend land use rights.
• Support in resolving problems that arise during the process of extending land use rights.
• Consulting and answering other questions related to extending land use rights for businesses.

With a team of experienced experts, Long Phan Consulting Company is committed to supporting businesses in completing procedures for extending land use rights quickly, in accordance with regulations and minimizing risks. We always accompany you to ensure the best interests of your business.

Frequently asked questions about conditions for businesses to extend land use rights

Below are frequently asked questions about extending the conditions for businesses to extend land use rights that customers can refer to:

Does an enterprise need to apply to extend land use rights for all types of land currently in use?

No, land use rights extension usually applies to land with a term of use, such as leased land or land allocated for a limited period of time, and does not apply to land with long-term stable use.

What if the enterprise is late in submitting the application to extend land use rights?

Late submission of documents may result in state agencies not being able to promptly consider extension before the land use term expires, causing disruption to business operations. In this case, the business may face more complicated legal procedures to continue using the land.

What factors influence a business’s decision to extend land use rights?

The decision to extend depends on many factors, including compliance with land laws, performance of financial obligations, and local land use planning.

Can a third party be authorized to carry out procedures to extend land use rights?

Yes, businesses can authorize a third party to carry out the renewal procedure, but a legal authorization document is required.

If the project expires, but the business wants to continue operating at that location, is that possible?

Enterprises must carry out procedures to request an extension of project operation time at the competent authority. After the decision to extend the project’s operation deadline, the enterprise will carry out procedures to extend land use rights.

What issues should you keep in mind when submitting an application to extend land use rights?

Documents must be prepared fully, accurately, and in accordance with the law. It is necessary to carefully study the processes and procedures so that the application submission and processing process takes place quickly and avoids unnecessary problems.

Conclude

The extension of land use rights directly affects the production and business activities of enterprises. To ensure benefits and carry out procedures smoothly, businesses can contact Long Phan Consulting Company via the hotline: 0906735386 for the best advice and support.