Legislature debates legal capital standards before voting on the Law.
The National Assembly (NA) Standing Committee yesterday announced that the legal capital detailed in the Law on Real Estate Business for real estate enterprises will remain at VND20 billion ($939,000). The Standing Committee had previously proposed it be raised to VND50 billion ($2.3 million).
Some members of the NA suggested that the VND20 billion figure is too low for a property company and sought an increase. The legal capital of a property company when implementing a project must be 15 or 20 per cent of the project’s total investment capital.
Responding to delegates, the NA said that the requirement of VND20 billion in legal capital was necessary when a developer establishes a real estate enterprise. When implementing a project, a real estate developer must have 20 per cent of the capital as legal capital for projects on less than 20 ha and over 15 per cent for projects on more than 20 ha.
The NA also approved articles in the law relating to purchasing and hiring property, and small-scale real estate projects don’t need to establish a company but must pay tax under law.
The NA approved the Law on Real Estate Business, with 82.7 per cent of delegates voting in favor. It will come into effect on July 1, 2015.
- National Assembly