THE LAM TRAINING DAY – 09.5.2025 - THE LAM LAW

📌 CONTRIBUTING CAPITAL BY LAND USE RIGHTS – LEGAL HIGHLIGHTS

During our internal training session in 2025, THE LAM shared insights on a topic that seems familiar but remains legally complex if misunderstood – Contributing capital by land use rights (LURs).

🔍 Key Takeaways:

According to the latest provisions of the Land Law 2024 and the Enterprise Law 2020, when contributing capital by LURs to establish a legal entity, the land use rights must be transferred to the entity.

It is essential to distinguish between capital contribution by LURs and business cooperation using LURs – these are two fundamentally different legal concepts.

Before proceeding, one must verify legal conditions for capital contribution, determine the nature of the contributed asset, conduct asset valuation, and complete the necessary transfer procedures.

⚠️ Practical Notes:

If the land is jointly owned by spouses, a written agreement from both parties is required to use the asset for business purposes.

Lack of transparency in asset valuation may lead to future disputes among shareholders.

✅ Through this training, THE LAM’s legal team once again emphasizes: Understanding and complying with the law from the beginning is the best way to save time, reduce costs, and avoid long-term legal risks.

If you or your business need legal advice on this matter or others, don’t hesitate to contact THE LAM LAW LLC:
📍Office: Indochina Park Tower, #4 Nguyen Dinh Chieu, Dakao Ward, District 1, HCMC
📞Tel: (028) 7105 8222 – 6288 3798 – Hotline: 097 309 77 77
📧Email: info@thelamlawllc.com