Do families who lease-out rooms need to register their business in Vietnam?

Do families who lease-out rooms need to register their business in Vietnam?

Pursuant to Clause 2, Article 10 of the Law on Real Estate Business 2014 has the following provisions:

1. Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.

2. Any organizations, households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed.

3. The Government shall provide guidance on this Article.

According to Article 5 of Decree 02/2022/ND-CP, organizations, households and individuals that sell, transfer, lease, lease-purchase real estate on a small scale and discontinuing operations, including:

Organizations, households and individuals that sell, transfer, lease, lease-purchase real estate specified in Clause 2, Article 10 of the Law on real estate trading and are not required to meet the eligibility criteria specified in Article 4 of this Decree include:

1. Agencies and organizations that sell houses and construction works, transfer land use rights due to bankruptcy, dissolution, or division in accordance with law.

2. Agencies or organizations that sell, transfer, lease, lease-purchase real estate as public property in accordance with law.

3. Credit institutions, foreign bank branches, Asset Management Company (AMCs), Vietnam Asset Management Company (VAMCs) that sell houses, construction works, transfer land use rights, transfer real estate projects which are put up as guarantee or collateral for debt recovery in accordance with law.

4. Organizations, households and individuals that sell houses, construction works, transfer land use rights under decisions of courts or competent authorities when settling disputes, complaints, and whistleblowing reports.

5. Organizations, households and individuals that sell, lease, lease-purchase houses and construction works under lawful ownership, transfer, lease or sublease land use rights under their lawful land use rights.

6. Organizations, households, and individuals that sell, lease, lease-purchase or transfer real estate that is invested and constructed by themselves and this real estate is not for being put on market in accordance with the law.

Thus, according to the above regulations in Vietnam, your household leasing out some rooms does not need to register a business.

Requirements in terms of real estate to be put on the market in Vietnam

Pursuant to Article 9 of the Law on Real Estate Business 2014, requirements in terms of real estate to be put on the market are as follows:

1. A building to be put on the market shall satisfy the following requirements:

a) The ownership of the building on land is registered in the Certificate of land use right (hereinafter referred to as Certificate of land). Regarding an off-the-plan building in the real estate project, it is only required to have the Certificate of land as prescribed in regulations of law on land.

b) There is no dispute about the land and ownership of the building on land.

c) The building is not distrained.

2. Types of land permitted to be put on the market shall satisfy the following requirements:

a) There are Certificates of land as prescribed in regulations of law on land.

 b) There is no dispute about the land.

c) The land is not distrained;

d) The land use term is still unexpired.

Best Regards!