Consulting services for contributing land capital to businesses A-Z

Consulting services for contributing land capital to businesses help investors make the most of land asset value, increase charter capital, and expand the scale of business activities. Contributing capital with land use rights not only helps optimize resources but also ensures legality, limits risks, and creates favorable conditions for businesses to develop sustainably.

Some requirements for conditions for contributing land capital to business

The Land Law 2024 clearly stipulates the conditions for making capital contributions using land use rights. Mastering these regulations helps parties avoid legal risks and ensure their rights during the capital contribution process.

For capital contributors

Pursuant to Article 45 of the Land Law 2024, land users can contribute capital with land use rights when the following conditions are met:

• Have a Certificate of land use rights or one of the types of certificates of house ownership and rights to use residential land, Certificate of land use rights, ownership of houses and other assets attached to land, or Certificate of land use rights, ownership of assets attached to land;
• 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;
• The land is within its useful life;
• Land use rights are not subject to temporary emergency measures according to the provisions of law.

In addition to the above basic conditions, according to Clause 3, Article 45 of the Land Law 2024, there are additional conditions for some special cases:

• In the case of exercising land use rights of an ethnic minority individual who is allocated or leased land according to the provisions of Clause 3, Article 16 of the Land Law 2024, the conditions specified in Article 48 of the Land Law 2024 must be met;
• According to 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, they must complete the financial obligation before contributing capital with land use rights.

Thus, the land owner must fully meet the above conditions to have the right to contribute land capital to businesses.

For parties receiving capital contributions

Pursuant to Clause 3, Article 10 of Decree 102/2024/ND-CP, economic organizations with foreign investment capital that receive capital contributions to implement investment projects in areas with limited land access must seek opinions from the Ministry of National Defense and the Ministry of Public Affairs before receiving.

In addition, according to the provisions of Clause 1, Article 60 of Decree 102/2024/ND-CP, economic organizations receiving capital contributions with land use rights to implement investment projects must send an extract of the location of the land where the investor proposes to implement the project and a written request according to Form No. 07 issued with this Decree to the Provincial People’s Committee where the land is located.

Thus, you should note that for businesses receiving capital contributions in land and with foreign investment capital, they must ensure the above conditions for each special case.

Benefits of contributing land capital to business

Contributing capital with land use rights to a business brings many benefits to both the land owner and the business. Specifically:

1. Benefits for capital contributors:

• Optimize asset use: Instead of leaving land unused or ineffectively used, land capital contribution helps land owners turn static assets into business capital;
• Become a member/shareholder of the enterprise: People who contribute capital with land are recognized with benefits corresponding to the value of the land contributed as capital, and have the right to participate in managing the enterprise according to the provisions of law and the company’s charter;
• Enjoy profits from business activities: Capital contributors enjoy dividends or profit distribution from the business according to the ratio of capital contribution, helping to create a stable source of income from land use rights;
• Avoid the risk of losing land due to non-use: According to the provisions of the Land Law, land that is not used for a long time can be recovered by the state. Contributing capital with land helps avoid this risk.

2. Benefits for the party receiving capital contribution:

• Save initial investment costs: Businesses do not need to spend large amounts of money to buy land or rent land, helping to reduce capital pressure during the start-up or expansion phase;
• Taking advantage of prime land locations: Through capital contribution, businesses can access land plots with favorable locations that may be difficult to buy or rent on the market;
• Increase the value of corporate assets: Land use rights for capital contribution are recorded in corporate assets, helping to increase book value and increase the ability to mobilize capital;
• Creating stable facilities: Enterprises have long-term land use rights to help build stable facilities, creating trust for customers, partners and investors;
• Developing projects on contributed land: Enterprises can implement investment and business projects on contributed land, generating revenue and profits.

Thus, contributing land capital to businesses helps exploit the value of land effectively. In addition, contributing capital with land also creates business development opportunities for participating parties.

What does Long Phan Consulting Company’s consulting service on contributing land capital to businesses include?

Long Phan Consulting Company provides consulting services for contributing land capital to businesses with a professional and complete process. We would like to inform you of some of the following consulting items:

1. Initial preliminary consultation:

• Review the legality of land use rights;
• Consulting on capital contribution conditions;
• Consulting on land valuation for capital contribution.

2. Drafting documents and legal documents:

• Drafting capital contribution contracts using land use rights;
• Prepare minutes of valuation of contributed assets;
• Drafting resolutions/decisions on receiving capital contributions;
• Prepare documents to change business registration content.

3. Support in implementing administrative procedures:

• Procedures for registering land changes;
• Procedures for notarization or authentication of land capital contribution contracts;
• Procedures for changing business registration content;
• Procedures for asking for opinions (if necessary);
• Prepare an excerpt of the land location and title documents (if necessary).

Services at Long Phan Consulting Company will help the process of capital contribution in land take place safely and effectively.

Service provision process at Long Phan Consulting Company

Long Phan Consulting Company carries out the consulting process of contributing land capital to businesses according to clear steps. The sequence of steps is designed in accordance with legal regulations and implementation practices. Specifically as follows:

Step 1: Receive information and preliminary consultation:

• Receive information about the land plot expected to contribute capital and the enterprise receiving capital contribution;
• Preliminary analysis of transaction feasibility;
• Consulting on capital contribution options suitable to customers’ specific circumstances;
• Quote service price and sign service contract.

Step 2: Consulting on appraisal:

• Check the legality of the Land Use Rights Certificate;
• Verify land origin and current legal status;
• Check capital contribution conditions according to regulations;
• Check the legal status of the party receiving capital contribution;
• Assess risks and propose solutions.

Step 3: Determine the value of land contributed as capital

• Coordinate with the valuation unit (if necessary) to determine the market value of land use rights;
• Prepare a minutes of valuation of contributed assets with the agreement of the parties;
• Consulting on determining the capital contribution ratio in the enterprise’s charter capital.

Step 4: Draft legal documents

• Drafting capital contribution contracts using land use rights;
• Drafting resolutions/decisions on receiving capital contributions;
• Drafting applications to register land changes and change business registration content;
• Prepare forms according to regulations of land and enterprise law.

Step 5: Carry out administrative procedures

• Submit application for land change registration at the land registration agency;
• Carry out procedures to consult the Ministry of National Defense and the Ministry of Public Security (if any);
• Prepare and submit land location extracts and proposal documents (if any);
• Submit an application to change business registration at the Business Registration Office.

Step 6: Complete the transaction and post-check

• Receive results from competent authorities;
• Hand over legal documents to customers;
• Consulting on issues that arise after capital contribution;
• Support to resolve problems that arise during implementation.

Above are some basic steps in the process of using our consulting services. However, the detailed content of the steps may change depending on your requirements and the actual status of the case file, which we will plan for each specific case.

Why should you choose Long Phan Consulting Company?

Long Phan Consulting Company is a professional unit in the field of consulting for businesses. Below are some reasons that you may be interested in:

Firstly, a team of experienced experts:

• Experts who understand land administrative procedures and business registration;
• The team masters the latest regulations of the Land Law, Law on Enterprise and guiding documents;
• Continuously update changes in legal policies related to land capital contribution;

Second, comprehensive consulting services:

• Comprehensive consulting from legal appraisal to completion of procedures;
• Provide customized solutions suitable for each specific case;
• Support in handling complex issues and problems during implementation;
• Consulting on optimizing benefits for both capital contributors and capital contributors.

Third, we are committed to service quality:

• Accurate consulting, compliance with current legal regulations;
• Forms and contracts are drafted to standards, protecting customers’ rights;
• Implementation time is quick, on schedule as committed;
• Service fees are competitive, transparent, and do not incur unnecessary costs.

Fourth, after-service support:

• Consulting on solving problems that arise after completing capital contribution;
• Support in case of disputes or complaints;
• Provide advice on issues related to land use after capital contribution.

With a team of experienced experts and a deep understanding of land law, Long Phan Consulting Company is committed to providing high quality services, ensuring customer satisfaction.

Some frequently asked questions about contributing land capital to businesses at Long Phan Consulting Company

In addition to the above advice, we would like to provide you with some common questions about contributing land capital to businesses. Please refer!

Does contributing capital with land use rights require notarization?

According to the law, capital contribution contracts using land use rights must be notarized or authenticated, except for some special cases prescribed by law.

How is the term of capital contribution using land use rights regulated?

The term of capital contribution using land use rights is agreed upon by the parties and stated in the capital contribution contract. This term also needs to be consistent with the remaining land use term.

How is the value of land use rights as capital determined?

The value of contributed land use rights is determined based on the agreement of the parties or through an independent valuation unit.

What are the rights of capital contributors with land use rights in the enterprise?

People who contribute capital with land use rights have rights corresponding to the value of the land contributed as capital, including the right to participate in business management and enjoy profits from business activities.

Can an enterprise that receives capital contribution using land use rights transfer that land use right?

Enterprises receiving capital contributions in the form of land use rights have the right to transfer those land use rights according to the provisions of law.

Above are some answers about contributing land capital to businesses according to current legal regulations. With these answers, we hope to have partly answered your questions.

Conclude

Long Phan Consulting Company’s consulting service on contributing land capital to businesses is a comprehensive solution for customers who are in need of converting land use rights into business capital. If you have any questions related to the order and procedures for contributing land capital to business, please contact us immediately via the hotline 0906735386 to receive detailed advice from a team of experts and professional support for your land capital contribution needs.