Can businesses transfer state leased land?

Can businesses transfer state leased land? This question arises when a business no longer wants to continue using land leased from the state but wants to transfer it to another entity. This article analyzes the regulations on conditions and procedures for transferring land leased from the state to help businesses clearly understand their rights and obligations when performing this transaction.

Conditions for transferring land use rights leased from the state

According to Clause 12, Article 3 of the Land Law 2024, transferring land use rights is the transfer of land use rights from one person to another through the form of conversion, transfer, inheritance, donation of land use rights, and capital contribution with land use rights. Transfer of land use rights leased from the state must comply with the conditions clearly specified in Clause 1, Article 45 of the Land Law 2024 as follows:

• Have a Certificate of land use rights or Certificate of house ownership and residential land use rights or equivalent certificates, except for some special cases such as inheritance of land use rights, conversion of agricultural land when consolidating fields or exchanging plots;
• The land is not in dispute or the dispute has been resolved by a competent state agency, the judgment or decision of the Court, or the decision or award of the Arbitration has taken legal effect;
• Land use rights are not distrained, other measures are applied to ensure judgment enforcement according to the provisions of the law on civil judgment enforcement.
• Still within the land use term;
• Land use rights are not subject to temporary emergency measures according to the provisions of law.

In addition to meeting the general conditions above, the transfer of land use rights leased from the state also depends on whether the enterprise has completed all financial obligations to the state or not.

Specifically, according to the provisions of Clause 5, Article 45 of the Land Law 2024: “In cases where a land user is allowed to delay the performance of financial obligations or is credited with a financial obligation, he or she must complete the financial obligations before exercising the rights to convert, transfer, lease, sublease, donate land use rights, mortgage, or contribute capital with land use rights.”

Thus, if an enterprise leased land by the state wants to transfer land use rights to other organizations or individuals, it must fully ensure the above conditions.

Can businesses transfer state leased land?

The answer to this question depends on the form of land lease from the state by the enterprise. Enterprises renting land from the state have two main forms: land lease with one-time payment for the entire rental period and land lease with annual payment. Each form has different transfer rights according to the provisions of law as follows:

1. For businesses renting land with one-time payment for the entire rental period:

According to the provisions of Point b, Clause 1, Article 33 of the Land Law 2024, enterprises are allowed to transfer the right to use leased land when they meet the conditions specified in Clause 1, Article 45 of the Land Law 2024. Accordingly, enterprises renting land with a one-time payment have the right to transfer land to other organizations and individuals when meeting all conditions prescribed by law.

2. For businesses renting land with annual payments:

Pursuant to Point b, Clause 2, Article 37 of the Land Law 2024, individuals who are leased land by the state with annual land rent payment do not have the right to transfer the right to use the leased land. They only have the right to sell their owned assets attached to land, sell their owned assets attached to land and the right to rent in a land lease contract when they meet the conditions specified in Article 46 of the Land Law 2024. Similarly, businesses that rent land with annual payments are also not allowed to transfer land use rights.

However, businesses that lease land with annual payments can switch to a one-time land lease for the remaining lease period to exercise the right to transfer. According to Clause 1, Article 30 of the Land Law 2024, economic organizations, public service units, individuals, people of Vietnamese origin residing abroad, and economic organizations with foreign investment capital that are being leased land by the state with annual land rent collection can choose to switch to leasing land with one-time land rent payment for the remaining land lease period when in the case of being leased land by the state with one-time land rent collection for the entire lease period according to the provisions of law.

Thus, businesses can only transfer land use rights leased by the State in the case of leased land with one-time rental payment listed in Clause 2, Article 120 of the Land Law 2024.

Steps to transfer state leased land

The process of transferring land leased from the state includes many steps with specific legal procedures. Below are the steps to take when transferring state leased land according to current legal regulations:

Step 1: The transferor and transferee draft the land use rights transfer contract and notarize the contract:

After agreeing on the draft contract, the enterprise must notarize the land use rights transfer contract. According to the provisions of Point a, Clause 3, Article 27 of the Land Law 2024, land transfer contracts and assets attached to land must be notarized and authenticated.

To perform notarization, the parties need to prepare documents including:

• Notarization request form;
• Draft contract (if any);
• Legal documents of both parties;
• Certificate of land use rights and power of attorney (if any);

After fully preparing the documents, notarization is performed at notary practice organizations or the commune-level People’s Committee where the land is located. According to the provisions of Clause 1, Article 66 of the Law on Notarization No. 53/2014/QH13, the person requesting notarization will pay the notary fee. The parties can agree on which party will pay this fee.

The parties sign the transfer contract right at the notarization and authentication location.

Step 2: Procedures for registering name transfer of Land Use Rights Certificate:

According to Clause 3, Article 133 of the Land Law 2024, after notarizing/authenticating the real estate transfer contract, both parties are required to register land changes at the Land Registration Office or Land Registration Office Branch where the land is located within no more than 30 working days.

From the date of receiving the dossier, the time limit for registering name transfer changes shall not exceed 10 working days as prescribed in Clause 2, Article 22 of Circular 10/2024/TT-BTNMT. Then, based on the records, the land management agency will check, determine the location of the land plot and send it to the tax authority to determine financial obligations (if any).

Step 3: Fulfill financial obligations:

After receiving notice from the tax authority, the land management authority will send a tax payment notice to the land user to pay their financial obligations at the tax authority. Taxes and fees payable include:

• Registration fee: calculated according to the formula Registration fee = 0.5% x (Land area × Price of 1 m2 of land at the Land Price List of the Provincial People’s Committee);
• Corporate income tax;
• Cadastral fees and Red Book fees: Fees depend on land location and payer (organization or individual).

Step 4: Receive Land Use Rights Certificate:

After paying taxes, the land user submits tax receipts and registration fees to the land management agency to receive a Certificate of land use rights.

Things to note when transferring land leased from the state

When transferring land leased from the state, businesses and individuals need to pay special attention to a number of issues to ensure their rights and avoid legal risks that may arise. Specifically:

First, you need to carefully check the transfer conditions:

Before transferring, businesses or individuals need to carefully check the transfer conditions to ensure that they fully meet the legal requirements as prescribed in Clause 1, Article 45 of the Land Law 2024. Special attention should be paid to the form of land lease (one-time or annual payment) because this directly determines the business’s right to transfer.

Next, you need to prepare complete documents:

Land lease transfer documents need to be carefully prepared and include all necessary documents, such as land use rights certificates and documents proving the fulfillment of financial obligations. Missing one of these documents can delay or cause difficulty in the transfer process.

It is necessary to monitor the legal status of the land:

Businesses need to regularly monitor the legal status of the land, including information on land use planning and issues related to land use rights. This helps businesses understand changes in land policy that may affect their transfer rights.

Need to contact land management agency:

If there are any questions regarding the process or document requirements, businesses should contact the land management agency directly for guidance and advice. Consulting with land experts is also an effective measure to ensure the transfer process goes smoothly.

Finally, it is important to note the transfer time:

Enterprises need to pay attention to the time needed to carry out the transfer, from preparing documents to waiting for decisions from state agencies. This helps avoid delays that affect business operations.

The above notes are no less important when businesses conduct transactions to transfer land use rights leased from the State. The above notes will help you ensure that mistakes and errors are minimized throughout the transaction process.

Consulting services for transferring land leased from the state at Long Phan Consulting Company

With in-depth experience in the field of land law, Long Phan Consulting Company provides comprehensive consulting services on transferring land leased from the state to businesses and individuals. We provide the following service items:

• Consulting on transfer conditions according to the latest regulations;
• Support in drafting and completing transfer documents;
• Your authorized representative works with competent state agencies;
• Resolve problems that arise during the transfer process (if any);
• Perform financial obligations on behalf of customers (if any).

We are committed to providing optimal solutions for each customer’s specific case. Long Phan Consulting Company always accompanies customers from the first steps of the transfer process until completing procedures and receiving the Land Use Rights Certificate.

Some frequently asked questions about transferring state-leased land for businesses at Long Phan Consulting Company

We provide you with some common questions surrounding the transfer of land use rights leased from the state by businesses. Please refer!

What types of documents are considered equivalent to a Land Use Rights Certificate?

Equivalent documents include Certificate of housing ownership and residential land use rights, or other documents issued by competent state agencies.

What happens if there is a dispute over land use rights during the transfer process?

If there is a dispute, the transfer process will be paused until the dispute is resolved by a competent state agency, court or arbitration.

Can businesses transfer part of the leased land area?

The transfer of part of the leased land area must comply with regulations on land division and must be approved by a competent state agency.

What financial obligations need to be fulfilled before transferring leased land?

Enterprises need to fulfill financial obligations related to land rent, taxes and other fees as prescribed by law.

What is the maximum time to complete the leased land transfer procedure?

The maximum time to register a change in name of a Land Use Rights Certificate is 10 working days from the date the competent authority receives all valid documents.

With the above answers, Long Phan Consulting Company hopes to have answered some of your questions when carrying out this transfer procedure.

Conclude

Thus, not in all cases can businesses transfer the right to use land leased from the state. Please contact Long Phan Consulting Company immediately via the hotline 0906735386 to receive comprehensive support from a team of experts from checking transfer conditions, drafting documents to completing procedures for transferring land use rights certificates quickly and effectively.