Can businesses transfer land lease rights annually?

Businesses transfer land lease rights annually strictly regulated under the Land Law 2024. When there is no longer a need to use the land and pay annual fees, can a business transfer its land lease rights? The following article will analyze the regulations on this issue. Please follow!

Conditions for transferring assets attached to leased land annually

Pursuant to the provisions of Clause 32, Article 3 of the Land Law 2024, the state leasing land use rights (hereinafter referred to as the state leasing land) is the issuance of a decision to lease land by a competent state agency to subjects who need to use land. Therefore, it can be seen that the land lease right of an enterprise subject to annual land lease arises on the basis of the land lease decision of the competent authority.

Besides, according to the provisions of Clause 1, Article 46 of the Land Law 2024, economic organizations, individuals, people of Vietnamese origin residing abroad, and economic organizations with foreign investment capital that are leased land by the State are only allowed to sell assets attached to the land when meeting the following conditions:

• Assets attached to leased land are legally created and registered according to the provisions of law;
• The construction has been completed in accordance with the detailed construction planning and the investment project has been approved and approved (if any), except in cases where it must be carried out according to an effective court judgment or decision, an enforcement decision of a civil judgment enforcement agency or a conclusion of a competent State agency on inspection and examination.

Thus, the Land Law 2024 does not allow businesses to transfer land lease rights from the State but only allows businesses to transfer assets attached to leased land when the following two conditions are met:

First, the land user must meet the general conditions of transfer in Article 45 of the Land Law 2024.

Second, the transfer of assets attached to leased land must meet the conditions specified in Clause 1, Article 46 of the Land Law 2024.

Can businesses transfer land lease rights annually?

According to the provisions of Clause 1, Article 46 of the Land Law 2024, subjects including: economic organizations, individuals, people of Vietnamese origin residing abroad, economic organizations with foreign investment only have the right to “selling property attached to land leased by the State with annual land rental payment”.

Thus, an enterprise that is leased land by the State and collects annual land rent according to the land lease decision cannot transfer its leased land rights to another third party, but the enterprise only has the right to sell assets attached to the annual leased land when it meets the conditions in Article 45, Clause 1, Article 46 of the Land Law 2024.

Obligations of enterprises when transferring assets attached to leased land annually

From the above analysis, it can be seen that the right to transfer annual land lease rights is not imposed on land users. Therefore, the obligation to transfer annual land lease rights is not imposed on them. Although businesses do not have the right to transfer the right to lease leased land, they can consider transferring assets attached to their leased land.

When transferring assets attached to annual leased land, businesses must comply with the general obligations of land users in Article 31 of the Land Law 2024 as follows:

• Use rented land in accordance with regulations;
• Carry out legal transfer procedures;
• Fulfill financial obligations regarding land;
• Protect land and environment;
• If during the process of use or transfer, objects are discovered underground, it must be done in accordance with the law.

Thus, although the obligations of the transferor of annual land lease rights are not set because the law does not allow annual transfer of land lease rights, you should note some of the main obligations of the transferor of assets attached to land leased from the state in case you want to sell assets attached to leased land.

Consulting services for transferring assets attached to annual leased land for businesses at Long Phan Consulting Company

Long Phan Consulting Company provides professional annual land-attached asset transfer consulting services for businesses. Consulting services of Long Phan Consulting Company include:

• Evaluate conditions for transferring assets attached to leased land;
• Drafting contracts to transfer assets attached to leased land to ensure the interests of the business;
• Support in implementing contract notarization procedures;
• Consulting on other financial obligations arising from transfer transactions.

With experience in consulting many businesses to successfully transfer land-attached assets every year, Long Phan Consulting Company will accompany the business, ensuring the transfer process goes smoothly, in accordance with the law and maximizes the protection of the business’s interests.

Some frequently asked questions about transferring annual land lease rights

We would like to provide some common questions about transferring annual land lease rights of businesses. Please refer!

Can the company transfer land lease rights with periodic payments?

No, according to the Land Law 2024, land leasing companies that pay periodic rent to the State are not allowed to transfer this land lease right.

So, what rights does a business that leases land with annual rental payments have regarding the leased land?

Enterprises are only allowed to buy and sell assets associated with leased land when they fully satisfy the regulations stated in Articles 45 and 46 of the Land Law 2024.

What requirements do businesses need to meet to be allowed to buy and sell assets attached to land leased with annual payments?

Firstly, land users must meet the general requirements for transferring land use rights specified in Article 45 of the Land Law 2024.

Second, assets associated with leased land must be legally formed, registered according to regulations and construction must comply with approved planning and investment projects.

Does the Land Law 2024 have any specific provisions on the State periodically leasing land use rights?

Yes, Clause 32, Article 3 of the Land Law 2024 defines the State’s lease of land use rights as an action of a state agency with the authority to issue land lease decisions to subjects with land use needs.

When transferring assets attached to land leased with annual payments, what legal responsibilities does a business have?

Enterprises must comply with the general responsibilities of land users stipulated in Article 31 of the Land Law 2024, including using land for the right purpose, conducting transfer procedures in accordance with the law, fulfilling financial obligations related to land, protecting land and the environment, and handling objects discovered in the ground in accordance with the law.

With the above answers, we hope to have partly answered your questions surrounding the issue of transferring annual land lease rights from the State.

Conclude

Thus, businesses cannot transfer land lease rights every year. For detailed consulting support and proper implementation of the annual land lease transfer process, please contact Long Phan Consulting Company immediately via the hotline 0906735386 to receive the most suitable solution for your business.