Real estate business without minimum legal capital of VND 20 billion from 01/01/2021

Previously, Article 10 of Law on Real Estate Business 2014 stipulates requirements in terms of organizations or individuals conducting real estate business are to set up an enterprise or a cooperative, and to have the legal capital which shall not be less than VND 20 billion, excluding small-scale or irregular transactions of selling, transferring, leasing, and leasing in order to buy real estate.

However, from January 1, 2021, Law on Investment 2020 officially takes effect which abolishes the requirement of legal capital. Specifically, Point a, Clause 2, Article 75 of the Law on Investment 2020 stipulates:

“1. Any organizations or individuals who wish to conduct real estate business shall set up enterprises or cooperatives (hereinafter referred to as enterprises), excluding cases prescribed in Clause 2 of this Article”.

In conclusion, from January 1, 2021, the financial requirement of having at least VND 20 billion for those conducting real estate business is no longer existed. This new regulation will create more favorable conditions for enterprises conducting real estate business.

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