Can an accounting firm contribute capital to establishment of another accounting firm in Vietnam?

Can an accounting firm contribute capital to establishment of another accounting firm in Vietnam?

Pursuant to Article 59 of the 2015 Accounting Law has the following provisions:

1. An accounting firm may be in established in the form of:

a) A multi-member limited liability company; or

b) A partnership; or

c) A private enterprise.

2. The firm may only provide accounting services after all conditions specified in this Law are satisfied and the Certificate of eligibility to provide accounting services is obtained.

3. The accounting firm must not contribute capital to establishment of another accounting firm, except for contribution of capital together with a foreign accounting firm to establishment of an accounting firm in Vietnam.

4. The foreign accounting firm shall provide accounting services in Vietnam in the following manners:

a) Contributing capital together with an existing accounting firm in Vietnam to establish an accounting firm;

b) Establishing branches of the foreign accounting firm;

c) Provide accounting services across the border as prescribed by the Government.

As such, your business is only allowed to contribute capital with a foreign accounting firm to establishment of an accounting firm in Vietnam.

Holdings of organizations' capital contribution to an accounting firm in Vietnam

Pursuant to Article 26 of Decree 174/2016/ND-CP, which stipulates holdings of members that are organizations of a multi-member limited liability company as follows:

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.

Thus, your business can only contribute up to 35% of the charter capital of other accounting firms. In case there are many capital contributors who are organizations, your business and other organizations are only allowed to contribute up to 35% of the charter capital in Vietnam.

Best Regards!