Profile
Vietnamese
Foreign investors establish real estate brokerage companies
Real estate brokerage is the act of intermediary between parties in civil transactions involving real estate. With the real estate market showing no signs of cooling down, the real estate brokerage business promises to still bring high profits to foreign investors. To better understand the information related to foreign investors establishing real estate brokerage companies, please refer to the article of Siglaw Law Firm below:
Conditions for foreign investors to establish a real estate brokerage company in Vietnam
(Article 11 of Decree 105/2017 of 2017; amended and supplemented in 2020)
– There must be at least 02 people with real estate brokerage practice certificates, certificates may be of members/shareholders contributing capital or employees.
– Not be both a broker and a party performing a contract in a real estate business transaction.
Applying for a real estate brokerage practice certificate
A real estate brokerage practice certificate is valid for 05 years nationwide. The conditions to be met to be granted a real estate brokerage practice certificate include:
– Qualification: high school graduate or higher;
– Full civil capacity;
– Having passed the real estate brokerage knowledge test.
The procedure for applying for a real estate brokerage practice certificate is carried out at the Department of Construction of the province or centrally-run city, including 4 steps:
– Register and participate in the test organized by the Department of Construction;
– After the test results are available, the Chairman of the examination council approves the test results;
– The Director of the Department of Construction approves the list of people granted certificates based on the test results
– The Department of Construction issues the certificate.
Thus, before foreign investors establish a real estate brokerage company, they need to find employees or other investors with real estate brokerage practice certificates to cooperate with, only then will they be qualified to establish a company.
Procedures for foreign investors to establish a real estate brokerage company
The establishment of a real estate brokerage company with foreign investment involves 4 steps: preparing investment registration documents; submitting investment registration documents and receiving results; preparing business registration documents; submitting business registration documents and receiving results.
Step 1: Prepare investment registration documents
Documents for granting an Investment Registration Certificate include:
– Document requesting to implement an investment project to establish a real estate brokerage company with foreign investment;
– Investment project proposal: real estate brokerage services;
– Documents proving the financial capacity of the investor;
– Certified copy of personal identification documents for individual investors; copy of Business Registration for institutional investors;
– Lease contract or other documents confirming the investor’s right to use the business location;
– Authorization letter for individuals and organizations to submit documents to the Department of Planning and Investment.
Step 2: Submit investment registration documents and receive results
After preparing all documents, investors will submit the documents to the Department of Planning and Investment of the province or centrally-run city.
Within 15 working days from the date of receiving the documents, the competent authority shall consider and issue the investment registration certificate; in case of refusal to issue, it must be made in writing and clearly state the reasons.
Step 3: Prepare business registration documents
Documents for application for a business registration certificate include:
– Application for business registration;
– Company charter;
– List of members (For LLCs with two or more members); List of founding shareholders and shareholders who are foreign investors (For joint stock companies);
– A valid copy of one of the documents proving the legal status of the organization or the individual’s identification documents
– The issued investment registration certificate.
– Real estate brokerage practice certificates of 02 people working for the company
Step 4: Submit the business registration application and receive the results
After preparing all the documents, the investor will submit the application to the Department of Planning and Investment of the province or centrally-run city; and at the same time submit the application online at the National Business Registration Information Portal (dangkykinhdoanh.gov.vn).
After receiving the business registration application, the Business Registration Office will issue a Receipt of the application to the applicant. Within 03 working days from the date of receiving the valid application, the investor will be granted a business registration certificate. In case the competent authority refuses to issue, it must notify in writing stating the reasons.
Completing procedures after establishing a foreign-invested real estate brokerage company
– Opening a bank account: A foreign-invested company is required to open a direct investment capital account for investors to transfer capital into, then transfer to a payment account to pay for the company’s operating costs.
– Labor registration: Carry out labor registration, report and apply for Work Permits for foreign employees and social insurance for employees.
Difficulties when investing in real estate brokerage in Vietnam
– Establishing a foreign-invested real estate brokerage company requires compliance with the provisions of the Investment Law and the Enterprise Law. This process can be time-consuming and complicated.
– Culture, language: real estate brokerage is a profession that comes into contact with a variety of customer files from many countries, but mainly Vietnamese and foreigners residing in Vietnam. Therefore, understanding the culture, customs and working style of Vietnamese people is very important to build good business relationships.
– Competition: the real estate brokerage industry is currently facing fierce competition from local businesses, due to the characteristics of better understanding of culture and customs.
For comprehensive advice on procedures for establishing a foreign-invested real estate brokerage company, please contact:
Phone: (+84) 961 366 238
Email:
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
Facebook: https://www.facebook.com/hangluatSiglaw
