Guidance on defining authorised capital of real estate traders issued
29-AUG-2008 Intellasia | Hanoi Moi
Aug 29, 2008 - 7:00:00 AM
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Ministry of Construction recently sent the Official Letter No 62/BXD-QLN to Hanoi Planning and Investment Department to guide proceedings to define authorised capital of real estate business registration.
Circular No 13/2008/TT-BXD rules that fund deposit of founding members in real estate traders must be certified by licensed commercial banks. The minimum fund deposit must equal to money contribution of founding members and will be disbursed only after that trader is granted business license.
Additional, pursuant to Clause 4 Law on Business, capital contribution is the putting of asset to a company to become an owner or one of owner group. Contributed assets can be dong, free convertible foreign currency, gold, land using right, intellectual property right, technical and technological secrets, and other assets recorded in that established company's regulation. Money amount for capital contribution in the establishment of a real estate company will be negotiated by founding shareholders. If fund deposit is equal or higher the ruled authorised capital of six billion dong, real estate company has enough terms to register business license.
Moreover, according to Section 1.2 Item 1 Part I Circular No 13/2008/TT-BXD, as for operational companies in need of adding real estate business to their license, they must gain certificate of independent auditors on available ownership capital (written in corporate financial reports) equalling or higher six billion dong under Decree No 153/2008/ND-CP.
Pursuant to Section 1.3 Item 1 Part I Circular No 13/2008/TT-BXD, in the operation process, real estate trading firm must maintain a chartered capital of no less than authorised (including those were granted business license already before Decree No 153 took valid).
Pursuant to Section 1 Clause 24 Decree No 153/2008/ND-CP, institutions and individuals who had been granted real estate business license before the decree was enforced will not have to carry out re-registration proceedings. Under it, they must make procedures on chartered capital increase to the ruled level without proceedings on certifying authorised capital.
Those who want to transform from limited company into the model of joint stock company or vice verse according to Section 3 Clause 154 Law on Business, their business registration application must be enclosed with transformation decision.
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