Must the legal representative in Vietnam of an accounting service business be a practicing accountant?
How is an accounting service business regulated?
Pursuant to the provisions of Article 59 of the 2015 Accounting Law, regulations on accounting service businesses are as follows:
- Enterprises providing accounting services are established in the following forms:
+ Limited liability company with two or more members;
+ Partnership company;
+ Private enterprise.
- An enterprise may only provide accounting services when it satisfies all of the business conditions prescribed by this Law and is granted a Certificate of eligibility for accounting service business.
- An accounting service enterprise may not contribute capital to establish another accounting service enterprise, except for the case of capital contribution with a foreign accounting service enterprise to establish a foreign accounting service enterprise. accounting services in Vietnam.
- Foreign accounting service enterprises shall provide accounting services in Vietnam in the following forms:
+ Contributing capital with an accounting service enterprise already established and operating in Vietnam to establish an accounting service business;
+ Establishing a branch of a foreign accounting service enterprise;
Providing cross-border services according to the Government's regulations. (guided by Section 4 Chapter II of Decree 174/2016/ND-CP; Section 4 Chapter II of Decree 174/2016/ND-CP as amended by Article 2 of Decree 151/2018/ND-CP).
Conditions for granting the Certificate of eligibility for accounting service business?
Pursuant to the provisions of Article 60 of the 2015 Accounting Law, the conditions for granting the Certificate of eligibility for business in accounting services are as follows:
- A limited liability company with two or more members shall be granted a Certificate of eligibility for business in accounting services when fully meeting the following conditions:
+ Having an enterprise registration certificate, an investment registration certificate or another paper of equivalent value as prescribed by law;
+ There are at least two capital-contributing members who are practicing accountants;
+ The legal representative in Vietnam, director or general director of the limited liability company must be a practicing accountant;
+ Ensure the proportion of capital contributed by accountants practicing in the enterprise and the proportion of capital contributed by members being organizations in accordance with the Government's regulations. (guided by Article 26, Article 27 of Decree 174/2016/ND-CP).
A partnership company may be granted a Certificate of eligibility for business in accounting services when it fully meets the following conditions:
+ Having an enterprise registration certificate, an investment registration certificate or another paper of equivalent value as prescribed by law;
+ There are at least two general partners who are practicing accountants;
+ The legal representative in Vietnam, director or general director of a partnership must be a practicing accountant.
- A private enterprise shall be granted a Certificate of eligibility to provide accounting services when fully meeting the following conditions:
+ Having an enterprise registration certificate, an investment registration certificate or another paper of equivalent value as prescribed by law;
+ Having at least two practicing accountants;
+ The owner of a private enterprise is a practicing accountant and concurrently a director.
- A branch of a foreign accounting service enterprise in Vietnam shall be granted a Certificate of eligibility for business in accounting services when fully meeting the following conditions:
+ Foreign accounting service enterprises are allowed to provide accounting services according to the provisions of law of the country where the foreign accounting service enterprises are headquartered;
+ Having at least two practicing accountants, including the director or general director of the branch;
+ The director or general director of a branch of a foreign accounting service enterprise may not concurrently hold the position of manager or executive officer of another enterprise in Vietnam;
+ Enterprises providing foreign accounting services must send a document to the Ministry of Finance to ensure that they are responsible for all obligations and commitments of their branches in Vietnam.
- Within 06 months from the date of registration of accounting service business, the accounting service enterprise or branch of foreign accounting service enterprise in Vietnam is not granted the Certificate of eligibility for accounting services. conditions for providing accounting services or in case the Certificate of eligibility for business in accounting services has been revoked, the enterprise or branch of foreign accounting service business in Vietnam must notify immediately to the business registration office to carry out procedures to delete the phrase "accounting services" in the name of the enterprise or branch.
Must the legal representative in Vietnam of an accounting service business be a practicing accountant? (Image from the internet)
Is the legal representative in Vietnam of a company providing accounting services required to be a practicing accountant?
According to the guidance in Official Letter 1305/BTC-QLKT 2022 on the legal representative in Vienam who is a practicing accountant as follows:
“In reply to Official Letter No. 006/VN2T-HN-CV dated November 29, 2021 of your Company on regulations that the legal representative in Vietnam of an accounting service enterprise must be a practicing accountant, Ministry of Finance main comments are as follows:
At Point c, Clause 1, Article 60 of the Law on Accounting No. 88/2015/QH13 stipulates:
"1. A limited liability company with two or more members shall be granted a Certificate of eligibility for business in accounting services when fully meeting the following conditions:
a) Having an enterprise registration certificate, an investment registration certificate or another paper of equivalent value as prescribed by law;
b) There are at least two capital contributors who are practicing accountants;
c) The legal representative in Vietnam of the director or general director of the limited liability company must be a practicing accountant;
d) Ensure the proportion of capital contributed by accountants practicing in the enterprise and the proportion of capital contributed by members being organizations in accordance with the Government's regulations.
Pursuant to the above provisions, the legal representative of an accounting service enterprise must be a practicing accountant. the legal representative must be a practicing accountant.”
Thus, the legal representative of the director or general director of a limited liability company must be a practicing accountant.
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