Is it possible to use common properties to contribute capital to establish a business in Vietnam?
I have a piece of land that is the common property of husband and wife. Now I want to use this land to contribute capital to establish a business with my friend, do I need my wife's consent?
Is it possible to use common properties to contribute capital to establish a business in Vietnam?
Pursuant to Article 34 of the Enterprise Law 2020, there are provisions on contributed assets as follows:
1. Contributed assets include VND, convertible foreign currencies, gold, land use right (LUR), intellectual property rights, technologies, technical secrets, other assets that can be converted into VND.
2. Only the individual or organization that has the lawful right to ownership or right to use the asset mentioned in Clause 1 of this Article may contribute it as capital as prescribed by law.
According to Article 36 of the Law on Marriage and Family 2014, there are regulations on common property used for business activities as follows:
When husband and wife reach agreement on either spouse’s use of common property for business activities, this spouse has the right to make transactions related to that common property on his/her own. This agreement shall be made in writing.
Thus, according to the above provisions in Vietnam, assets contributed as capital to establish a business must be legally owned by the capital contributor.
In your case, because the land is the common property of you and your wife in Vietnam, you cannot arbitrarily use this land to contribute capital to establish a business. You will need your wife's consent to do this.
Best Regards!
