WHAT ARE THE REQUIREMENTS FOR OPENING A SOLE PROFITABLE ACCOUNTING SERVICE BUSINESS? WHO IS NOT ALLOWED TO REGISTER FOR ACCOUNTING SERVICE PRACTICE?

What are the requirements for opening a sole proprietorship for accounting services? Who is not allowed to register for accounting services practice? What is the deadline for sole proprietorships providing accounting services to notify the Ministry of Finance of the cessation of operations? Let’s find out more with Pham Consult!

What are the requirements for opening a sole proprietorship for accounting services?

According to Article 65 of the 2015 Accounting Law, the regulations regarding sole proprietorships for accounting services are as follows:

1. A sole proprietorship is permitted to conduct accounting services business when it meets the following conditions:
2. a) Has a Certificate of Business Registration;
3. b) Individuals or representatives of groups of individuals establishing a business household must be practicing accountants.
4. Accounting service business households do not need a Certificate of Eligibility to conduct accounting services.

Therefore, a business household is allowed to conduct accounting services when it meets the following conditions:

– Has a Business Registration Certificate;

– Individuals or representatives of groups of individuals establishing the business household must be practicing accountants.

Note: Accounting service business households do not need a Certificate of Eligibility to conduct accounting services.

Who is not allowed to register to practice accounting services?

Based on Clause 4, Article 58 of the Accounting Law 2015, the following is stipulated:

Registration to practice accounting services

4. Those who are not allowed to register to practice accounting services include:
5. a) Cadres, civil servants, public employees; officers, professional soldiers, workers, and employees of the national defense and the People’s Public Security.
6. b) Persons prohibited from practicing accounting by a legally effective court judgment or decision; persons currently under criminal investigation; persons convicted of one of the offenses against economic management order related to finance and accounting who have not yet had their criminal record expunged; persons currently subject to administrative measures such as education at the commune, ward, or town level, compulsory education, or compulsory rehabilitation;
7. c) Persons convicted of serious offenses against economic management order who have not yet had their criminal record expunged;
8. d) Persons who have been penalized for administrative violations of laws on finance, accounting, or auditing, and have not yet completed the 6-month period since the date of completion of the penalty decision in the case of a warning penalty, or have not yet completed the 1-year period since the date of completion of other administrative penalty decisions;
9. e) Persons whose accounting service practice has been suspended.

Thus, the following five individuals are not allowed to register for accounting services:

(1) Cadres, civil servants, public employees; officers, professional soldiers, workers, and employees of the national defense and the People’s Public Security.

(2) Persons who are prohibited from practicing accounting according to a legally effective court judgment or decision; persons who are being prosecuted for criminal responsibility; persons who have been convicted of one of the crimes against economic management order related to finance and accounting and whose criminal record has not yet been expunged; persons who are currently subject to administrative measures of education at the commune, ward, or town level, compulsory education facilities, or compulsory rehabilitation facilities;

(3) Persons who have been convicted of serious crimes against economic management order and whose criminal record has not yet been expunged;

(4) Persons who have been penalized for administrative violations of financial, accounting, and auditing laws and whose 6-month period has not yet expired since the date of completion of the penalty decision in the case of a warning penalty, or whose 1-year period has not yet expired since the date of completion of other administrative penalty decisions;

(5) Persons whose accounting service practice has been suspended.

What is the time limit for accounting service businesses to notify the Ministry of Finance about the cessation of operations?

Based on Article 66 of the Accounting Law 2015, the following is stipulated:

Changes that must be notified to the Ministry of Finance

1. Within 10 days from the date of any change in one of the following contents, accounting service businesses must notify the Ministry of Finance in writing:
2. a) List of practicing accountants at the business;
3. b) Failure to meet one, several, or all of the conditions for conducting accounting services as stipulated in Article 60 of this Law;
4. c) Name and address of the business’s head office;
5. d) Director or general director, legal representative, and capital contribution ratio of members;
6. e) Temporary suspension of accounting services;
7. f) Establishment, termination of operations, or change of name and address of a branch providing accounting services;
8. g) Division, separation, merger, consolidation, conversion, or dissolution.
9. Within 10 days from the date of any change in any of the following matters, the accounting service business must notify the Ministry of Finance in writing:
10. a) List of practicing accountants;
11. b) Name and address of the business;
12. c) Temporary suspension or termination of accounting services.

Therefore, accounting service businesses must notify the Ministry of Finance in writing within 10 days of ceasing their accounting service business.