Consulting services on real estate business conditions according to new regulations

Article overview

Real estate business conditions under new regulations bring many benefits to investors and businesses. Clear and transparent standards help limit legal risks and ensure a healthy business environment. This article analyzes in detail the new regulations on real estate business conditions, helping customers clearly understand the legal requirements when participating in this field.

Real estate business conditions
Real estate business conditions

What activities does the real estate business include?

Clause 1, Article 3 of the Law on Real Estate Business 2023 specifically regulates the scope of real estate business activities. Accordingly, the real estate business includes the following activities:

  • Creating houses, construction works, and land use rights in real estate projects for sale and transfer;
  • Lease, sublease, lease purchase of houses and construction works;
  • Lease and sublease of land use rights in real estate projects;
  • Transfer of real estate projects;
  • Real estate service business.

The above activities are all aimed at finding profits through investing capital in real estate. Enterprises, organizations and individuals who want to participate in real estate business need to clearly determine the type of their activities to meet the prescribed conditions.

In addition, the Law also clearly stipulates the types of real estate that are allowed to be put into business, including housing, existing and future construction works, and land use rights with technical infrastructure. This helps distinguish between legal real estate business activities and illegal forms of real estate transactions.

Creating housing and construction projects
Creating housing and construction projects

Conditions for real estate business with organizations and individuals according to the latest Law on Real Estate Business

For organizations

Clause 1, Article 9 of the Law on Real Estate Business 2023 clearly stipulates conditions for organizations when participating in real estate business:

  • Must establish an enterprise according to the provisions of the Enterprise Law or establish a cooperative or cooperative union according to the Cooperative Law.
  • Have a real estate business line registered in the Business Registration Certificate.

In addition, real estate businesses must also meet additional conditions according to Clause 2, Article 9:

  • Not during the period of prohibition, suspension or suspension of real estate business activities according to the decision of the competent authority.
  • Ensuring the ratio of outstanding credit debt and outstanding corporate bonds to equity according to regulations.
  • Have equity that meets the minimum ratio of total project investment capital, specifically:

Not lower than 20% for projects with a land use scale of less than 20 hectares.

Not lower than 15% for projects with land use scale of 20 hectares or more.

  • Ensuring the ability to mobilize capital to implement the project.

These conditions are intended to ensure the financial capacity and stable operations of businesses when participating in the real estate market. Organizations need to carefully prepare capital, human resources and other conditions before deciding to do real estate business.

For individuals

Similar to organizations and individuals who want to do real estate business, they must also meet the conditions prescribed in Clauses 1 and 2, Article 9 of the Law on Real Estate Business 2023:

  • Establishing a business, cooperative, or union of cooperatives.
  • Register for real estate business.
  • Not during the period of ban, suspension, or suspension of operations.
  • Ensure equity and credit balance ratios.
  • Ability to mobilize capital to implement the project.

However, the Law also has separate regulations for individuals doing small-scale real estate business. Specifically, these individuals are not required to establish a business but must still declare and pay taxes according to the law. This regulation creates conditions for individuals to participate in real estate business on a small scale, consistent with their capacity.

Individuals need to carefully consider the expected scale of operations to choose an appropriate form of business organization that meets the legal conditions.

Must establish a real estate business
Must establish a real estate business

Real estate is allowed to be put into business

Article 5 of the Law on Real Estate Business 2023 clearly stipulates the types of real estate allowed for business, including:

1. Available housing and housing formed in the future.

2. Existing construction works and construction works formed in the future, including:

  • The project serves educational, medical, sports and cultural purposes.
  • Office, commercial, service, tourism, accommodation.
  • Industrial construction.
  • The project has mixed functions.

3. Construction floor area in the above-mentioned projects.

4. Land use rights with technical infrastructure in real estate projects.

5. Real estate project.

For housing and construction projects formed in the future, the Law also stipulates specific conditions on project progress and legality before being allowed to be put into business. This is to protect customers’ interests and avoid risks when real estate transactions are formed in the future.

Consulting services on real estate business conditions according to new regulations in Long Phan

Benefits from our services

Long Phan’s real estate business conditions consulting service brings many practical benefits to customers:

  • Fully and accurately updated with the latest regulations on real estate business conditions.
  • Analyze and evaluate the actual situation of businesses and individuals compared to legal requirements.
  • Consulting on specific solutions to meet missing conditions.
  • Support business registration procedures and adjust appropriate industries.
  • Consulting on capital mobilization plans, ensuring the equity ratio according to regulations.
  • Minimize legal risks in the real estate business process.

With extensive experience in the real estate legal field, we are committed to providing customers with professional and effective consulting services, helping businesses and individuals feel secure in participating in the real estate market.

Service scope

Long Phan’s real estate business conditions consulting services include:

  • Review and evaluate the current legal status of businesses and individuals.
  • Consulting on establishing real estate businesses.
  • Instructions for registration and adjustment of real estate business lines.
  • Consulting on plans to ensure equity and outstanding debt ratio according to regulations.
  • Support in developing real estate business plans in accordance with regulations.
  • Legal advice on types of real estate allowed for business.
  • Support completing legal documents for real estate projects.
  • Consulting to resolve problems that arise during the business process.

With a comprehensive range of services, we are committed to accompanying customers throughout the process of participating in the real estate market, from the preparation stage to actual implementation.

Real estate business conditions under new regulations pose many strict requirements for businesses and individuals participating in the market. To ensure legal compliance and minimize risks, customers need to carefully study the regulations and fully prepare the necessary conditions. Long Phan is ready to support customers in this process with professional consulting services. Contact the hotline immediately 0906735386 for detailed advice on real estate business conditions.