Foreign investors establish real estate brokerage companies

Real estate brokerage is an intermediary for parties in civil transactions whose objects are real estate. With the real estate market showing no signs of cooling down, the real estate brokerage service business promises to still bring high profits to foreign investors. To better understand the information related to the establishment of real estate brokerage companies by foreign investors, please refer to the article of Siglaw Law Firm below:

Conditions for foreign investors to establish real estate brokerage companies 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 that can be of members/shareholders contributing capital or employees.

– It is forbidden to simultaneously act as both a broker and a party performing a contract in a real estate business transaction.

Foreign investors establish real estate brokerage companies

Apply for a real estate brokerage practice certificate

The real estate brokerage practice certificate has an expiry date of 05 years nationwide. The conditions to be met to be granted a real estate brokerage practice certificate include:

– Qualification: graduated from high school or higher;

– Full civil act capacity;

– Passed the test of real estate brokerage knowledge.

The procedure for applying for a real estate brokerage practice certificate shall be carried out at the Department of Construction of provinces and centrally-run cities, including 4 steps:

– Register and participate in the examination organized by the Department of Construction;

– After obtaining the exam results, the Chairman of the examination committee shall approve the exam results;

– The Director of the Department of Construction approves the list of certificates based on exam results

– Department of Construction issues certificates.

Thus, before a foreign investor establishes a real estate brokerage company, it is necessary to look for other employees or investors with real estate brokerage practice certificates to cooperate, thus being eligible to establish a company.

Dossiers and procedures for foreign investors to establish real estate brokerage companies

The establishment of a foreign-invested real estate brokerage company goes through 04 steps: preparation of investment registration dossiers; submit investment registration dossiers and receive results; preparation of enterprise registration dossiers; submit the business registration application and receive the result.

Step 1: Prepare investment registration documents

A dossier of issuance of an Investment Registration Certificate includes:

– A written request for implementation of an investment project to establish a foreign-invested real estate brokerage company;

– Investment project proposal: real estate brokerage service business;

– Documents proving the financial capacity of the investor;

– Certified personal identification documents for individual investors; copy of enterprise registration for institutional investors;

– Site lease contract or other document confirming that the investor has the right to use the business location;

– Written authorization for individuals and organizations to submit dossiers at the Department of Planning and Investment.

Step 2: Submit the investment registration application and receive the result

After preparing all dossiers, investors will submit dossiers at the Department of Planning and Investment of provinces and centrally-run cities.

Within 15 working days from the date of receipt of the dossier, the competent agency shall consider and issue the investment registration certificate; In case of refusal to grant a license, it must be made in writing and clearly state the reasons.

Step 3: Prepare business registration documents

A dossier of application for an enterprise registration certificate includes:

– An application for business registration;

– The company’s charter;

– List of members (For limited liability companies with two or more members); List of founding shareholders and shareholders being 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 certification document

– Investment registration certificate has been issued.

– Real estate brokerage practice certificate of 02 people working for the company

Step 4: Submit the business registration application and receive the result

After preparing all dossiers, investors will submit dossiers at the Department of Planning and Investment of provinces and centrally-run cities; at the same time, apply online at the National Business Registration Portal (dangkykinhdoanh.gov.vn). 

After receiving the enterprise registration dossier, the Business Registration Office shall hand over the receipt of the application to the applicant. Within 03 working days from the date of receipt of a valid dossier, the investor will be issued an enterprise registration certificate. In case the competent authority refuses to grant it, it must issue a written notice clearly stating the reason.

Complete the procedures after establishing a foreign-invested real estate brokerage enterprise

– Open 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 current account to pay the company’s operating expenses.

– Labor registration: Carry out labor registration, report and apply for work permits for foreign workers and social insurance for employees.

Difficulties when investing in real estate brokerage activities in Vietnam

– The establishment of a foreign-invested real estate brokerage company requires compliance with the provisions of the Law on Investment and the Law on Enterprises. This process can be time-consuming and complicated.

– Culture, language: Real estate brokerage is an industry that comes into contact with a variety of customers from many countries, but mainly Vietnamese and foreigners residing in Vietnam. Therefore, understanding the culture, customs and ways of working of Vietnamese people is very important to build good business relationships.

– Competition: The current real estate brokerage industry is subject to fierce competition from local businesses, due to the characteristics of better grasping culture and customs.

For advice on procedures for establishing a comprehensive foreign-invested real estate brokerage company, please contact:

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
• vphcm@siglaw.com.vn

Headquarters: Floor 12A Sao Mai Building, 19 Le Van Luong Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi City.

Southern branch: No. 99 Cong Hoa, Ward 04, Tan Binh District, Ho Chi Minh City.

Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City

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