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

Previously, Article 10 of Law on Real Estate Trading 2014 stipulates requirements in terms of organizations or individuals conducting real estate trading are to set up an enterprise or a cooperative, and have legal capital not smaller than VND 20 billion, excluding small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase.

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

“1. Any organizations or individuals wish to conduct real estate trading 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, there will be no longer regulation that requires businesses conducting real estate trading to have legal capital of more than VND 20 billion. This new regulation will create more favorable conditions for the businesses conducting real estate trading.

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