Is it possible to use an apartment as a company office?

I plan to use the apartment I am living in as the office of a company which I am about to open. Therefore, I want to know the legal regulations on this case.

FDVN’s opinions:

Thank you for concerning FDVN’s legal services. Regarding your consulting requests, after studying the relevant legal documents, FDVN Law Firm would like to give you the following advice:

According to Clause 3 Article 3 of the Law on Housing 2014: “Apartment building means any multi-story building which has multiple apartments, public stairs, hallways, private areas, common areas and common infrastructural works for organizations, households or individuals, including apartment buildings for residential use and mixed-use buildings for both business and residential purposes.”

Besides, pursuant to Clause 11 Article 6 of the Law on Housing in 2014 on prohibited acts: “11. Using the apartments not for residential purposes; using the area for business purposes in the apartment building under the approved project for trading flammable materials, explosives, providing services causing environmental pollution, noise or negative effects on the lives of households and individuals in the apartment building as prescribed in regulations of the Government.”

If the apartment building is built for mixed-use, including residential and commercial purposes, the commercial area can be used to open the company office. Thus, it is wrong to rent or buy an apartment with the aim to use it as a company office while this apartment is only used for living purposes. Therefore, it is illegal to use an apartment as a company office.

Regarding administrative sanctions:

According to Clause 2 Article 66 of the Decree No. 139/2017/ND-CP, violations against regulations on management and use of apartment buildings are specified as follows:

“2. A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for one of the following violations:

a) Deliberately changing loading structure or separate design of each apartment;

b) Using the apartment for purposes other than residence;

c) Using shared area and equipment of the apartment building for private purposes.”

Above is the advisory opinion of FDVN related to your consulting request on the basis of researching legal regulations. Hopefully, the advice of FDVN will be useful to you.

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