The utilization of residential spaces within condominiums for commercial purposes has become a common trend in the business world. Many companies seek to establish representative offices in such condominium-based due to their accessibility and cost-efficiency. However, the regulatory landscape governing this practice raises essential questions regarding the eligibility and legal aspects involved. In this discussion, we will explore the pertinent regulations and procedures a company should be aware of when considering the rental of an apartment in a condominium for use as a representative office.
Question:
Our company has applied for a business license with the address of a rented apartment in a condominium as the representative office. However, the local authorities did not accept this application. What additional documents do I need to provide in order to obtain the license? Can I submit the ownership contract with the condominium as a commercial, service building to get the license?
Answer:
According to Clause 11, Article 6 of the 2014 Housing Law, certain actions are prohibited, including using condominium apartments for non-residential purposes. Therefore, it is recommended that the company choose a different address for its registered office. If the intended business address is in a commercial area, it’s advisable to provide documents that prove the intended business address is for commercial purposes based on an approved project by the relevant authority. The Department of Business Registration will consider the application based on these documents.
The company can provide the following documents (either original or certified copies) for verification:
1. Decision approving the project by the competent state authority (Ministry of Construction, People’s Committee of the city, Department of Construction, District People’s Committee) with detailed information about the intended business address not being a condominium apartment.
2. Confirmation letter from the project investor stating that the intended business address is not a condominium apartment.
3. Confirmation letter from the Condominium Management Board stating that the intended business address is not a condominium apartment.
4. Ownership transfer contract stating that the intended business address is not a condominium apartment.
5. Office lease contract stating that the intended business address is not a condominium apartment.
6. Confirmation letter from the People’s Committee of the commune, ward, or town confirming that the intended business address is not a condominium apartment.
Conclusion
In conclusion, while the idea of renting an apartment in a condominium for use as a representative office may seem appealing to businesses, it’s crucial to navigate the complex regulatory landscape diligently. Understanding the specific legal requirements and procedures for obtaining a business license in such scenarios is vital to ensure compliance and prevent potential legal issues. By adhering to these guidelines and seeking proper authorization, a company can operate its representative office within a condominium confidently and within the bounds of the law.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
