Set up a real estate brokerage company in Vietnam

Real estate has always been evaluated as an exciting market, receiving a lot of attention from investors so far. There are many ways to do business in this field, but the most common and popular is probably real estate brokerage. So what are the conditions to set up a real estate brokerage company in accordance with current laws? This content will be provided specifically by Viet An Law Firm in the following article.

Legal basis

• Enterprise Law 2020;
• Law on Real Estate Business 2014.

The concept of real estate brokerage and real estate brokerage company in Vietnam

Real estate brokerage is one of the most popular real estate business activities today. In Clause 2, Article 3 of the Law on Real Estate Business, it is explained that real estate brokerage is an intermediary for the parties in buying, selling, transferring, leasing, subleasing, leasing to buy real estate.

In fact, the real estate agent will perform tasks such as:

• Support to provide information related to real estate, support parties to negotiate, sign contracts for sale, transfer and lease of real estate
• Authorized representative of the customer to carry out works related to procedures for sale, transfer and lease of real estate in accordance with the provisions of law

Accordingly, individuals or organizations will have to set up a real estate brokerage company to be able to perform and provide real estate brokerage services to customers.

Thus, it can be understood that a real estate brokerage company is a company set up, organized and operating in accordance with the law to carry out real estate brokerage activities. Normally, a real estate brokerage company will usually be set up as an enterprise as a limited liability company and must meet the conditions to set up a real estate brokerage company as prescribed by law.

Conditions to set up a real estate brokerage company in Vietnam

Real estate brokerage is one of the professions prescribed by law as a conditional business line. Therefore, to be able to set up a real estate business company, it is necessary to meet the conditions specified in Article 62 of the Law on Real Estate Business 2014, specifically including:

• Organizations or individuals providing real estate brokerage services must set up an enterprise and at the same time must have at least 02 people with real estate brokerage practice certificates;
• Organizations or individuals providing real estate brokerage services must not simultaneously act as both a broker and a party to perform a contract in a real estate business transaction.

Accordingly, Article 68 of the Law on Real Estate Business also stipulates that individuals, if they want to be granted a real estate brokerage practice certificate, need to fully meet the following specific conditions:

• Must have full capacity for civil acts;
• Must have a high school diploma or higher;
• Passed the knowledge test of real estate brokerage.

In addition, it should be noted that when registering a real estate brokerage business, individuals or organizations can register industry code 6820 (Consulting, brokerage, real estate auction, land use right auction).

Steps to set up a real estate brokerage company in Vietnam

After satisfying the conditions to set up a real estate brokerage company, individuals or organizations will carry out procedures to set up a real estate brokerage company in the following steps:

Step 1: Prepare the type of company, name, address, capital as well as the representative of the company

This is the first step to prepare before making documents to set up a real estate brokerage company. Accordingly, it should be noted:

• The company name will have to have sufficient structure including the type of company and proper name. Don’t have the same or confusing name as a previously registered business. It is forbidden to use the names of state agencies or people’s armed forces units as proper names of enterprises.
• The company address must be a definite address, specifically about the number of houses, districts, districts, cities … Do not use fake addresses, apartment complexes, dormitories as addresses for the company.
• Regarding the type of company, there are some popular types including one-member limited liability companies, limited liability companies with 2 or more members, private enterprises, joint stock companies.
• In terms of representatives, a business can have one or more representatives depending on the type of business.
• Regarding capital, it is necessary to prepare sufficient capital sources when opening a company, in case the industry requires legal capital conditions, enterprises also need to pay attention to prepare the right amount of capital.

Step 2: Prepare documents to set up a real estate brokerage company

A dossier of registration to set up a real estate brokerage company will include the following specific documents:

• An application for a license to set up a real estate brokerage service company;
• The company’s charter;
• Notarized/certified copies of individuals’ documents such as: ID card/Citizen card/passport or copies of the above documents with originals for comparison;
• In case the organization needs to prepare documents such as ID card / Citizen card or passport of the representative and a written confirmation of consent to contribute capital;
• Written confirmation of registration and deposit capital payment as prescribed;
• Information regarding shareholders or capital contributing members of the company.

Step 3: Submit the application to set up of a real estate brokerage company

Individuals or organizations shall send dossiers to the Business Registration Office where the enterprise is headquartered in one of the following forms:

• Submit directly at the Business Registration Office
• Submit via the National Business Registration Portal at https://dangkykinhdoanh.gov.vn address

After receiving the dossier, the Business Registration Office will hand over the Certificate of receipt of the application to the applicant. After that, the Business Registration Office will issue an Enterprise Registration Certificate within 03 working days from the date of receipt of a valid dossier.

However, in case the application is not valid, the Business Registration Office will notify in writing to the requester and guide amendments within 03 working days from the date of receipt of the dossier.

Step 4: Engrave the seal and announce the contents of business registration

The real estate brokerage company will have to make its own seal with the seal must have the full company name and business code. The number and form of seals will be decided by the enterprise. After engraving the seal, the enterprise will complete the procedures for announcing the seal sample on the National Web Portal.

Within a maximum of 30 days from the date of issuance of the business registration license, the real estate brokerage company will have to publish the contents of business registration on the National Portal in accordance with regulations.

If you have any questions related to the conditions to set up a real estate brokerage company or other legal issues, please contact Viet An Law Firm for the best support!