How long does a business that does not offer accounting services in Vietnam have before its Certificate is revoked?

How long does a business that does not offer accounting services in Vietnam have before its Certificate is revoked?

Pusuant to Clause 2.b Article 69 of the Law on Accounting in 2015:

Suspension of provision of services and revocation of Certificate of eligibility to provide accounting services, Certificate of Accounting Service Registration

1. An accounting firm shall be suspended from providing accounting services in one of the following cases:

a) One, some, or all of the conditions specified in Article 60 of this Law are not satisfied for 03 consecutive months;

b) There are professional errors or violations against accounting standards or code of ethics for accountants that cause serious consequences or are likely to cause serious consequences.

2. An accounting firm shall have its Certificate of eligibility to provide accounting services revoked in one of the following cases:

b) Accounting services are not provided for 12 consecutive months;

c) The errors or violations mentioned in Clause 1 of this Article are not eliminated within 60 days from the suspension date;

d) The firm is dissolved, goes bankrupt, or suspends the accounting service provision itself;

dd) The Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document is revoked;

e) The firm falsifies accounting documents, financial statements and provides false information and reports, or colludes with another entity in doing so;

g) The Certificate of eligibility to provide accounting services is forged or falsified.

3. The accounting firm whose Certificate of eligibility to provide accounting services is revoked shall immediately stop providing accounting services from the effective date of the decision on revocation.

4. An accounting household shall be suspended from providing accounting services when there are professional errors or violations against accounting standards or code of ethics for accountants that cause serious consequences or are likely to cause serious consequences.

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As regulated above, a business that does not offer accounting services in Vietnam in 12 consecutive months shall have its Certificate of eligibility to provide accounting services revoked.

How long does a business that does not offer accounting services in Vietnam have before its Certificate is revoked? - image from internet

What are conditions for issuance of the Certificate of eligibility to provide accounting services in Vietnam?

Pusuant to Article 60 of the Law on Accounting in 2015 stipulating conditions for issuance of the Certificate of eligibility to provide accounting services:

1. A multi-member limited liability company

- The company has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;

- At least two capital contributors (members) are accounting practitioners;

- The legal representative, Director or General Director of the company is an accounting practitioner;

- The accounting practitioners’ holdings in the enterprise, the holdings of members being organizations are conformable with regulations of the Government.

2. A partnership

- The partnership has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;

- At least two general partners are accounting practitioners;

- 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:

- The enterprise has a Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document as prescribed by law;

- There are at least two accounting practitioners in the enterprise;

- 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

- The foreign accounting firm is permitted to provide accounting services according to regulations of law of its home country;

- There are at least two accounting practitioners, including the Director or General Director of the branch;

- The Director or General Director of the branch does not concurrently hold the position of manager or executive officer of another enterprise in Vietnam;

- 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.

What documents are included in the application for Certificate of eligibility to provide accounting services in Vietnam?

Pusuant to Article 61 of the Law on Accounting in 2015, the application for Certificate of eligibility to provide accounting services in Vietnam includes following documents:

- An application form for the Certificate of eligibility to provide accounting services.

- Copies of the Certificate of Enterprise Registration, Investment Registration Certificate, or an equivalent document.

- Copies of Certificates of Accounting Practice Registration of accounting practitioners.

- Employment contracts between the accounting firm and accounting practitioners.

- Documents proving capital contribution (for limited liability companies).

- The company’s charter (for partnerships and limited liability companies).

- A written commitment to take responsibility by the foreign firm; documents proving the foreign firm is permitted to provide accounting services (for branches in Vietnam of foreign accounting firms).