1. What is appraisal?
Appraisal is the process by which an organization or institution with the function of appraising determines the monetary value of various types of assets in accordance with the provisions of the Civil Law with regard to market prices at a specific location and time, serving a specific purpose according to appraisal standards.
2. Conditions for conducting appraisal services
According to Article 49 of the 2023 Pricing Law (effective from July 1, 2024), the conditions for conducting appraisal services are as follows:
– When applying for a certificate of eligibility to conduct appraisal services, a business must have at least 05 individuals who hold appraisal cards with all the qualifications required for registering the appraisal profession according to the provisions in Article 45 of the 2023 Pricing Law to register the appraisal profession within the business and meet the following conditions:
+ For private enterprises, single-member limited liability companies, and partnerships, the business owner, Director, or General Director of the private enterprise; the legal representative, Director, or General Director of the single-member limited liability company or partnership must meet the requirements stipulated in Article 51 of the 2023 Pricing Law.
For single-member limited liability companies owned by individuals and partnership members of a partnership, they must be individuals who hold appraisal cards and register the appraisal profession within the business.
+ For limited liability companies with two or more members and joint-stock companies, the legal representative, Director, or General Director of the business must meet the requirements stipulated in Article 51 of the 2023 Pricing Law; at the same time, the business must have at least 02 contributing members or 02 shareholders who are individuals holding appraisal cards and registered in the appraisal profession within the business.
In the case where the contributing member or shareholder is an organization, the authorized representative of the contributing organization must be an individual holding an appraisal card and registered in the appraisal profession within the business; the total capital contributed by the members who are organizations must not exceed 35% of the charter capital.
The total contributed capital of the members or shareholders who are individuals holding appraisal cards and registered in the appraisal profession within the business must account for over 50% of the charter capital of the business.
– In the event that the certificate of eligibility to conduct appraisal services is lost, damaged, or the information on the certificate is changed compared to the information on the certificate, the appraisal business must go through the procedure for reissuing the certificate of eligibility to conduct appraisal services.
Illustration: Conditions for conducting appraisal services
3. Regulations on appraisal businesses and branches of appraisal businesses
3.1. Appraisal businesses
According to Article 48 of the 2023 Pricing Law, an appraisal business is a business established and registered in the field of conducting appraisal services according to the provisions of the laws on enterprises and issued a certificate of eligibility to conduct appraisal services by the Ministry of Finance as stipulated in the 2023 Pricing Law.
After leaving a position of authority or power in the state price management sector, individuals are not allowed to establish or hold management or executive positions in an appraisal business within the specified period as stipulated by the laws on prevention and combat of corruption.
3.2. Branches of appraisal businesses
According to Article 50 of the 2023 Pricing Law, a branch of an appraisal business is a dependent unit of an appraisal business established according to the provisions of the laws on enterprises, meeting the prescribed conditions, and being listed on the certificate of eligibility to conduct appraisal services of the appraisal business.
A branch of an appraisal business must meet the following conditions:
– There must be at least 03 individuals who hold appraisal cards with all the qualifications required for registering the appraisal profession according to the provisions in Article 45 of the 2023 Pricing Law to register the appraisal profession at the branch. These individuals must not simultaneously register the appraisal profession at the headquarters or other branches of the appraisal business.
– The head of the branch must be an individual who holds an appraisal card with all the qualifications required for registering the appraisal profession according to the provisions in Article 45 of the 2023 Pricing Law to register the appraisal profession at that branch.
A branch of an appraisal business conducts appraisal activities based on written decisions of the appraisal business and issues appraisal certificates and appraisal reports for appraisal contracts signed with appraisal clients.
The appraisal business is responsible for the provision of appraisal services by the branch.
