In practice, it is quite common for individuals and organizations to lease a house to serve as the headquarters or office of a company. However, not everyone is fully aware of the legal regulations related to this activity. In the article below, NPLaw will analyze several legal provisions regarding the act of leasing a house to be used as a company office under current laws.
I. Current state of companies leasing privacy houses as their offices
Leasing a house for use as a company office is now a very common form of office leasing. This solution offers several advantages: flexible lease prices give businesses more financial options; companies can quickly begin operations without the need for construction or major renovations; and professional office spaces often come equipped with necessary facilities and utilities for company operations.
To ensure a smooth and secure lease process, lessees should understand the legal regulations surrounding this issue. This knowledge helps protect the company's interests in case of disputes.
II. Legal regulations on companies leasing houses as offices
1. Is a lease contract required when a company leases a house for office use?
Pursuant to Article 121 of the Law on Housing 2014, regarding housing contracts:
- Housing contracts are agreed upon by the parties and must be made in writing, including the following details: Full names of individuals, names of organizations, and addresses of the parties involved.
Thus, if a company wants to lease a house for office use, it must sign a written contract with content as prescribed by law.
2. Can a company lease an apartment in a condominium for office use?
Pursuant to Clause 3, Article 3 of the Law on Housing 2014:
- A condominium is a multi-story building with multiple apartments, shared walkways and staircases, privately and commonly owned areas, and shared infrastructure systems used by households, individuals, and organizations. It includes residential-only buildings and mixed-use buildings designed for both residential and commercial purposes.
Therefore, companies may set up offices in mixed-use condominiums that have designated areas for business or commercial activities. However, such apartments must not be used for activities involving flammable material services, environmentally polluting services, noisy operations, or any actions affecting the lives of other residents, as stipulated in Clause 11, Article 6 of the Law on Housing 2014.
3. Are expenses incurred from leasing a house for office use tax-deductible?
According to Article 6 of Circular 78/2014/TT-BTC, expenses are deductible for corporate income tax purposes if they meet the following conditions:
- The expenses are actually incurred and are related to the business operations of the enterprise;
- There are valid invoices and legal documentation as required by law;
- For expenses with invoices valued at 20 million VND or more (including VAT) per purchase, non-cash payment methods must be used.
Therefore, if these conditions are met, lease costs for office use are deductible from corporate income tax.
III. Common questions regarding companies leasing houses for office use
1. Can the company make a verbal agreement to lease the house?
- As stated in Article 121 of the Law on Housing 2014, housing contracts must be made in writing with required information about the parties.
Thus, a company cannot rely on a verbal agreement; a written contract is mandatory.
2. Is it required to notarize the lease contract?
According to Clause 2, Article 122 of the Law on Housing 2014:
- In cases such as social housing, state-owned housing for sale or lease purposes, social housing for sale or lease, resettlement housing; contributing capital in the form of housing where one party is an organization; leasing, lending, allowing temporary residence, or authorizing housing management is not required to have the contract notarized or authenticated, unless the parties have a need.
Therefore, a written lease agreement is required, but notarization or certification is not mandatory unless desired by the parties involved.
3. Can the company sublease the rented house if it no longer needs it?
Pursuant to:
- Point a, Clause 1, Article 11 of the Law on Real Estate Business 2014, which allows enterprises to engage in real estate business in the form of leasing and lease-purchase:
+ Domestic organizations and individuals may engage in real estate business through the following activities: Buying houses or constructions for sale, lease, or lease-purchase.”
- Clause 4, Article 28 of the same law:
+ Lessees have the right to sublease part or all of the rented property if such arrangement is stipulated in the lease contract or consented to in writing by the landlord.
Thus, companies may sublease the property if this is stated in the lease agreement or if written consent is obtained from the landlord.
4. Is it legal for a company to use a virtual office as its registered office address?
A virtual office is a business model wherein companies lease an address to use as their official business registration address and display a company signboard, often to mislead regulatory authorities.
However, according to Article 42 of the Law on Enterprises 2020:
- The head office of an enterprise must be located within the territory of Vietnam, be the company’s contact address, and must be specified according to administrative boundaries. It must also have a telephone number, fax number, and email address (if any).”
Currently, there are no specific laws regulating or prohibiting the use of virtual offices. Therefore, using a virtual office address is not considered illegal under current legislation.
IV. Legal consulting services for companies renting houses as offices
The above article by NPLaw provides an overview of the legal framework surrounding the issue of companies leasing houses for office purposes. With a team of experienced lawyers and legal professionals, NPLaw offers reliable and professional legal services to ensure the lawful rights and interests of our clients.
