WHICH BUSINESSES ARE ALLOWED TO PROVIDE ACCOUNTING SERVICES?
The accounting law stipulates that accounting service enterprises are required to be established in the following types:
- Limited liability company with two or more members;
- Private enterprise.
For foreign accounting service enterprises when they want to conduct accounting service business in Vietnam:
- Contribute capital to accounting service enterprises that have been established and operate in Vietnam to establish accounting service enterprises;
- Establish branches of foreign accounting service enterprises;
- Choose the form of service provision across borders. (guided by Section 4 Chapter II of Decree 174/2016/ND-CP)
Enterprises also note that they are only allowed to provide accounting services when they meet the business conditions prescribed by Law on Accounting and are granted certificates of eligibility to provide accounting services. In addition, accounting service enterprises will not be allowed to contribute capital to establish other accounting service enterprises, except for the case of capital contribution with foreign accounting service enterprises to establish accounting service enterprises in Vietnam (Article 59, Law on Accounting 2015).
CONDITIONS FOR ISSUANCE OF CERTIFICATES OF ELIGIBILITY TO PROVIDE ACCOUNTING SERVICES.
Depending on the type of enterprise, there will be different conditions for granting Certificates eligibility to provide accounting services (detailed in Article 60, Law on Accounting 2015). However, the general conditions include:
- 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 (for limited liability companies with 2 or more members).
+ Holdings of members that are organizations of a multi-member limited liability company contribute up to 35% of the charter capital. 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 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.
For branches of foreign accounting service enterprises in Vietnam, they will be granted a Certificate of eligibility for providing accounting services when they fully meet the following conditions:
- Be allowed to provide accounting services in accordance with the laws of the country where the foreign accounting service enterprise is headquartered;
- Have at least two practicing accountants, including a branch director/general manager;
- The director/general director of a branch of a foreign accounting service enterprise may not simultaneously hold the position of manager or operator of another enterprise in Vietnam;
- There must be a written request to the Ministry of Finance to ensure that it is responsible for all obligations and commitments of the branch in Vietnam.
DOSSIER OF APPLICATION FOR CERTIFICATES OF ELIGIBILITY TO PROVIDE ACCOUNTING SERVICES
(According to Article 61, Accounting Law 2015) the dossier includes:
- An application for a Certificate of eligibility to provide accounting services for a limited liability company with two or more members, a partnership and a private enterprise. (Form of Appendix 1, Circular 296/2016/TT-BTC). For branches of foreign accounting service enterprises in Vietnam (Form specified in Appendix 2 issued together with Circular 297/2016/ TT-BTC).
- Copies of the Enterprise Registration Certificate, Investment Registration Certificate or equivalent value documents.
- 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, 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).
PROCEDURES FOR ISSUANCE OF CERTIFICATES OF ELIGIBILITY TO PROVIDE ACCOUNTING SERVICES
Step 1: Prepare and submit your application
The organization applying for the Certificate of eligibility to provide accounting services shall send a set of dossiers as prescribed above directly to the head office of the Ministry of Finance or by post and pay the appraisal fee for the certificate of eligibility to provide accounting services.
Address of the Ministry of Finance: No. 28 Tran Hung Dao – Hoan Kiem District – Hanoi. Web Portal Phone: (84-24)2220.2828-2888. Fax: (84-24)2220.8091.
Step 2: Pay the fee.
The appraisal fee for granting certificates of eligibility to provide accounting services first time is VND 4,000,000/appraisal. (Clause 1 Article 3 of Circular 271/2016 / TT-BTC)
Step 3: Review the application
Within 15 days from the receipt of the satisfactory application, the Ministry of Finance shall issue the Certificate of eligibility to provide accounting services for the enterprise (Form of Appendix 3 issued together with Circular 297/2016 / TT-BTC). If the application is rejected, explanation must be provided in writing.
If the application needs clarifying, the Ministry of Finance shall request the applicant to provide explanation.
The time limit for issuance of the Certificate of eligibility to provide accounting services begins from the date of receipt of additional documents.
Step 4: Publicize the list on the Website of the Ministry of Finance.
– Law on Accounting No. 88/2015/QH13 dated November 20, 2015.
– Decree No. 174/2016/ND-CP dated 30/12/2016 of the Government detailing a number of articles of the Accounting Law.
– Circular 296/2016/TT-BTC dated 15/11/2016 of the Ministry of Finance guiding the issuance, revocation and management of the Certificate of registration of accounting service practice.
Above are the basic contents of registering the business activities of accounting services. In general, the registration of accounting service business activities is quite simple. However, for foreign accounting service enterprises when they want to conduct accounting services business in Vietnam, especially in the form of choosing to provide cross-border services, the regulations will be somewhat more complicated and detailed. With a team of professional consultants and many years of experience working with domestic and foreign partners in the fields of business, tax, accounting,… You can rest assured and accompany Pham Consult in supporting the accounting service business. Our company is committed to providing high quality service at a reasonable fee.
To better understand the process of applying for a certificate of eligibility to provide accounting services as well as related issues, please contact PHAM CONSULT – a unit specializing in providing tax consulting services, financial consulting, Accounting services, preparation and payment of salaries. Customers can contact us via hotline: (84-28) 3930 2487 or Facebook communication channel if they need support.