This is a remarkable content specified in the Government’s Decree No. 02/2022/ND-CP detailing a number of articles of the Law on Real Estate Business dated January 06, 2022.
Before, organizations and individuals doing real estate business shall establish enterprises in accordance with the law on enterprises or establish cooperatives in accordance with the law on cooperatives and must have legal capital of at least VND 20 billion.
According to the new regulations, in case an investor is selected as the project owner of a real estate project in accordance with law regulations, the equity of such investor is not less than 20% of the total investment capital for a project using less than 20 hectares of land, not less than 15% of the total investment capital for projects using 20 hectares of land or more.
The determination of the equity is based on the results of the latest audited financial statement or the results of the independent audit report (in the year of determination or the year preceding the year of determination) of an operating enterprise; For a newly established enterprise, the equity shall be determined according to the actually contributed charter capital in accordance with law regulations.
This Decree takes effect on March 01, 2022.