Legal Regulations When Renting Offices

tháng 9 01, 2021

Office leasing also has its own laws that the lessor and the lessee must comply with. So what are those legal regulations, below are the issues surrounding the provisions of Vietnamese law on office rental and office leasing?

REGULATIONS ON OFFICE LEASING

REGULATIONS ON OFFICE LEASING
Office leasing business belongs to the group of real estate business, and is one of 243 conditional business lines, and is also a group of industries under legal capital.

The Enterprise Law 2014 clearly stipulates that enterprises do not have to prove their capital when establishing a business or adding real estate business lines, but must maintain the legal capital during the business period. Specifically:

Organizations and individuals dealing in real estate must establish an enterprise or a cooperative (hereinafter referred to as an enterprise) and have a legal capital not lower than VND 20 billion, except for the case specified in Clause 2 of this Article.
Organizations, households, and individuals that sell, transfer, lease, lease-purchase real estate on a small or irregular basis are not required to establish an enterprise but must declare and pay tax following the law.

LEGAL REGULATIONS ON OFFICE LEASING

According to the provisions of law, the lessee and the lessor can agree on the terms, legal regulations, rights, and obligations of each party in the cooperation process between the two parties. This is standardized by a voluntary agreement between the two parties. some provisions harmonize the interests and interests of both sides. Between the business and the building owner. This will also be important legal evidence. Set up according to the regulations of the State and handled when there is a dispute.

Both the office leasing unit and the representative, office leasing organization must understand the following basic provisions:

OFFICE LEASE CONTRACT PROVISIONS

It is mandatory to have an office lease contract signed between the lessor and the lessee. The contract details should state the mandatory terms such as the rights and obligations of each party, the term of office rental, etc.

OFFICES FOR LEASE OFFER FIRE FIGHTING IN LEGAL REGULATIONS

Offices for la ease must ensure fire prevention and fighting standards as prescribed, including being equipped with automatic fire alarm systems, fully equipped with fire extinguishers, and having emergency exits in case of fire incidents…

OFFICE LEASING BUSINESS CONDITIONS

Relevant regulations on business conditions for office leasing:

Articles 119 and 146 of Decree No. 181/2004/ND-CP on the implementation of the Land Law. The land use right lease contract must be certified by a notary. The land use right lease contract takes effect from the time of registration at the Land Use Right Registration Office.
According to Article 149 of Decree No. 181/2004/ND-CP on order and procedures for registration of lease of land use rights. The lessor of the land use right shall submit a set of documents including a Notarized land use right lease contract; Certificates of land use rights.
Within 5 working days from the date of receipt of complete and valid dossiers. The land use right registration office is responsible for carrying out the procedures for registration of the lease of land use rights. Go to the cadastral file and correct the issued land use right certificate. Or carry out procedures for granting a certificate of land use right in case a new certificate is required.

Which, there are some issues to note such as “Can I use the apartment building as a business office or use a private house as a representative office?…”. These specific issues are all regulated by law. Specifically:

The 2014 Housing Law prohibits “using the apartment for non-residential purposes”. In addition, Clause 11 Article 6 of the Law on Housing 2014 also stipulates: “It is prohibited to use the business area in the apartment building under the approved project to trade inflammable and explosive materials, doing business. providing services that pollute the environment, noise, or other activities that affect the lives of households and individuals in the apartment building under the Government’s regulations. Therefore, it is not legal to use the apartment building to live as an office.

In Clause 7, Article 80 of Decree 99/2015/ND-CP detailing and guiding the implementation of several articles of the Law on Housing, it is stated: “In case the business registration paper is issued by a competent authority issued with the use of an apartment building as a business location before the effective date of the Law on Housing, the organization, household or individual that is granted this business registration paper must transfer its business activities to another location other than an apartment building within 6 months from the effective date of this Decree”.

According to the above Decree, from December 10, 2015, organizations, households, and individuals who have done business in apartments for the purpose of living must move their business activities to another location other than apartments. in 6 months. After June 10, 2016, all business activities at the apartment are considered illegal.

For Foreign companies that want to start or expand businesses and look for an office in Vietnam: