Setting a real estate brokerage business in Vietnam

Real estate is always assessed as a dynamic market and has a lot of interest from investors from the past to today. There are tons of ways to get business in this sector, but real estate brokerage is the most popular activity. So, what are the criteria for setting up a real estate brokerage business in Vietnam following current law? This issue will be presented by Viet An Law Firm in this article below.

Legal basis

• Law on Enterprise 2010;
• Law on Real Estate Business 2023;
• Circular 44/2019/TT-BTC on amounts, collection, payment, management, and use of fees for providing information about enterprises and charges for business registration.

The concept of real estate brokerage

Currently, real estate brokerage is the most prominent activity out of the activities of Real Estate Business. According to Clause 11 of Article 3 of the Law on Real Estate Business 2023, real estate brokerage is a working intermediary for parties in purchase and sale activity, lease, sublease, and lease purchase real estate.

The market access of real estate brokerage in Vietnam

Vietnam hasn’t committed to real estate brokerage services in WTO’s commitment. In CPTPP’s scope, real estate brokerage isn’t a sector that reserves approaching market conditions. Regulation in commitments indicates, “All of the foreign investing enterprises can supply services in real estate brokerage, […] with housing real estate and commercial houses”. Consequently, foreign investors participating in the market must meet minimum criteria equal to those of internal investors.

The conditions for setting a real estate brokerage business in Vietnam

Real estate brokerage is a realm that is included in business real estate. Real estate brokerage business needs to align with the conditions, which are specifically outlined in Article 61 of the Law on Real Estate Business 2023, which comprise:

Have established enterprise, cooperative

Following Law on Enterprise 2020, the kinds of entities in which real estate brokerage businesses can be established are private enterprises, limited liability companies, partnerships, and joint stock companies.

Having regulation of active service real estate brokerage

The law doesn’t stipulate specifically for the regulation of the active statute of real estate brokerage companies. However, for the company to trade effectively, the client can choose to draft services of Viet An law firm or self-drafting regulations and can note one of the issues, for example, the regulation must explain clearly the active system of the company; the procedure for implementing real estate brokerage service; the procedure for supporting between facilities and departments; the regulation to control finance and awards.

Material and technical basis meet the active requirement

Currently, the law doesn’t stipulate specifically for the condition of real estate brokerage companies. However, following my perspective, working in brokerage in the present trend can require the enterprise to have a technological information system with the confidential information of clients or the vehicle for brokers.

Minimum of 01 individuals who have a real estate broker certificate

Article 70 of the Law on Real Estate Business 2023 also stipulates that individuals if they want to be certificated the Practising Certificate for real estate brokers must meet all conditions as follows:

• Passed the Qualifying examination in real estate brokerage;
• Fulfill capacity of civil behavior;
• Currently, not facing criminal prosecution, kept in temporary detention, serving an imprisonment sentence/ administrative penalty in a correctional institution or rehabilitation center, or prohibited by the court from holding certain positions or doing certain works.

Disclosing information

Before the operation, information about the enterprise must be sent to the Department of Construction where the enterprise is established to be posted on the information system on housing and real estate market.

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).

Dossier for setting a real estate brokerage business in Vietnam

Steps to set up a real estate brokerage company

If you use the service of establishing a real estate brokerage company in Viet An Law, the steps to establish a company are as follows :

Ddetailed content of the steps as below:

Step 1. Obtaining an Investment Registration Certificate

Investors file one file to request an investment registration certificate following clause 1 of Article 33 of the Law on Investment 2020 for the Department of Planning and Investment. The Department of Planning and Investment gives an investment registration certificate to investors within 15 days from the date of the proper file.

Step 2. Obtaining Enterprise Registration Certificate

Individuals or organizations send the file to the Business Registration Office, where the headquarters of the company under one of following methods:

• Submitting directly to the Business Registration Office
• Submitting through the Vietnam Government Portal for enterprise at https://dangkykinhdoanh.gov.vn

The Business Registration Office will give the Registration Certificate within 3 days from the day of getting the proper file. Information for the registration of enterprises must be disclosed within 30 days of receiving the enterprise Registration Certificate.

Step 3. Procedure after establishing enterprise

Carving a seal

The enterprise has the right to decide the kind of seal, quantity, form, and content of the seal of the enterprise. According to current law, a real estate brokerage business doesn’t have to disclose seal specimens to authorized agencies.

Tax code

Within 30 days of having the Enterprise Registration Certificate, businesses obey to register tax code in authorized tax by offline or post.

Hanging sign board

Enterprises must make and hang signboard in front of the headquarters, branch, representative office, and business position (if any). In the case of not hanging a signboard, businesses can be punished from 30 million to 50 million by authorized tax following clause 2 of Article 52 of Decree 122/2021/NĐ-CP by authorized tax.

Submitting an initial file tax

This is the first step in setting the means of operation for the accounting organ in the company. In this one, the enterprise must register to enumerate and submit the electronic tax, register the method of inherent depreciation property, register the accounting firm, and use an invoice with authorized tax.

Associated question

How much is the fee for setting a real estate brokerage business in Vietnam following Vietnam’s tool?

According to Circular 44/2019/TT-BTC on amounts, collection, payment, management, and use of fees for providing information about enterprises and charges for business registration:

• The Registration charge to set up a business is 50.000/time. However, enterprise registers online are free.
• The fee to disclose the business’s information in all circumstances is 100.000/time.

Does the law regulate authorized capital?

The law doesn’t regulate the threshold of authorized capital, so authorized capital depends on the owner. Moreover, in active progress, investors can change authorized capital.

Can you research the Enterprise Registration Certificate of a real estate brokerage business in Vietnam online?

Sure. At the portal https://dangkykinhdoanh.gov.vn/vn/Pages/Trangchu.aspx

Service setting a real estate business in Vietnam of Viet An Law Firm

• Consulting procedures for registration of establishment of real estate brokerage company;
• Registration services to establish real estate brokerage companies;
• Registration of invoices, tax declaration, digital signatures, company signs, and post-establishment services for businesses;
• Registration of intellectual property protection for trademarks, inventions, and industrial designs of the business;
• Service of applying for a sub-license related to the business fields of the business;
• Regular legal advice for businesses during the operation.

If there are any other legal problems related to the establishment of a real estate broker company, please contact Viet An Law for more specific and detailed advice. Sincerely thank you!