Vietnam: Is it compulsory that the legal representative of an accounting service business is an accounting practitioner?
- What are the conditions for issuance of the Certificate of eligibility to provide accounting service in Vietnam?
- Is it compulsory that the legal representative of an accounting service business in Vietnam is an accounting practitioner?
- What are the holdings of accounting practitioners of a multi-member limited liability company in Vietnam?
What are the conditions for issuance of the Certificate of eligibility to provide accounting service in Vietnam?
According to Article 60 of the Law on Accounting 2015, the conditions for issuance of the Certificate of eligibility to provide accounting services are as follows:
"Article 60. Conditions for issuance of the Certificate of eligibility to provide accounting services
1. A multi-member limited liability company shall be granted the Certificate of eligibility to provide accounting services after all of the conditions below are satisfied:
a) The company has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;
b) At least two capital contributors (members) are accounting practitioners;
c) The legal representative, Director or General Director of the company is an accounting practitioner;
d) The accounting practitioners’ holdings in the enterprise, the holdings of members being organizations are conformable with regulations of the Government.
2. A partnership shall be granted the Certificate of eligibility to provide accounting services after all of the conditions below are satisfied:
a) The partnership has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;
b) At least two general partners are accounting practitioners;
c) The legal representative, Director or General Director of the partnership is an accounting practitioner.
3. A private enterprise shall be granted the Certificate of eligibility to provide accounting services after all of the conditions below are satisfied:
a) The enterprise has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;
b) There are at least two accounting practitioners in the enterprise;
c) The owner of the private company, who holds the position of Director, is an accounting practitioner.
4. A branch in Vietnam of a foreign accounting firm shall be granted the Certificate of eligibility to provide accounting services after all of the conditions below are satisfied:
a) The foreign accounting firm is permitted to provide accounting services according to regulations of law of its home country;
b) There are at least two accounting practitioners, including the Director or General Director of the branch;
c) The Director or General Director of the branch does not concurrently hold the position of manager or executive officer of another enterprise in Vietnam;
b) The foreign accounting firm has submitted a document to the Ministry of Finance that it is responsible for every obligations and commitments of the branch in Vietnam.
5. Within 06 months from the date of accounting service registration, if the accounting firm or branch of a foreign accounting firm is not granted the Certificate of eligibility to provide accounting services, or the Certificate of eligibility to provide accounting services has been revoked, the accounting firm or branch of a foreign accounting firm must promptly request the business registration authority to remove the phrase “dịch vụ kế toán” (“accounting services”) from its name."
Vietnam: Is it compulsory that the legal representative of an accounting service business is an accounting practitioner? (Image from the internet)
Is it compulsory that the legal representative of an accounting service business in Vietnam is an accounting practitioner?
According to Official Letter 1305/BTC-QLKT in 2022, the General Department of Customs stipulates as follows:
Responding to Official Dispatch No. 006/VN2T-HN-CV dated November 29, 2021 of the legal representative of an accounting service business is an accounting practitioner, Ministry of Finance comments as follows:
At Point c, Clause 1, Article 60 of the Law on Accounting 2015 stipulates:
"1. A multi-member limited liability company shall be granted the Certificate of eligibility to provide accounting services after all of the conditions below are satisfied:
a) The company has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;
b) At least two capital contributors (members) are accounting practitioners;
c) The legal representative, Director or General Director of the company is an accounting practitioner;
d) The accounting practitioners’ holdings in the enterprise, the holdings of members being organizations are conformable with regulations of the Government.
Thus, based on the above provisions, the legal representative of the company is an accounting practitioner;
What are the holdings of accounting practitioners of a multi-member limited liability company in Vietnam?
Article 26, Article 27 of Decree 174/2016/ND-CP stipulates as follows:
- Holdings of members that are organizations of a multi-member limited liability company
+ A member that is an organization may contribute up to 35% of the charter capital of a multi-member limited liability company providing accounting services. If capital is contributed by more than one organization, the total holdings of organizations must not exceed 35% of charter capital of such company.
- Holdings of accounting practitioners of a multi-member limited liability company
+ A limited liability company providing accounting services must have at least 02 capital contributors who are its accounting practitioners. Holdings of accounting practitioners of such a company must exceed 50% of its charter capital.
+ Accounting practitioners must not work for more than one accounting service providers simultaneously.
Thus, the legal representative of an accounting service business must be a practicing accountant.
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