EN When household businesses have the need to expand their operations and convert to the enterprise model, one of the issues of concern is whether it is necessary to appoint a chief accountant or not. At the same time, determining whether the enterprise after conversion belongs to the category of micro enterprises in the field of trade and services must also be based on specific criteria regarding the number of employees being used. Let’s learn more with Pham Consult!
What are the principles of supporting micro enterprises under Decree 80?
Pursuant to Article 20 of Decree 174/2016/ND-CP on regulations of chief accountants and persons in charge of accounting as follows:
Chief accountant, person in charge of accounting
Accounting entities must arrange a chief accountant except for the entities specified in Clause 2 of this Article. In case the entity cannot immediately appoint a chief accountant, it shall arrange a person in charge of accounting or hire a chief accounting service in accordance with regulations. The maximum period for arranging a person in charge of accounting is 12 months; after this period, the accounting entity must arrange a chief accountant.
Person in charge of accounting:
a) Accounting entities in the state sector include: Accounting entities having only one person doing accounting or one person concurrently performing accounting; accounting entities of commune, ward and township budgets and finance shall not appoint a chief accountant but only appoint a person in charge of accounting.
b) Micro enterprises in accordance with the law on support for small and medium-sized enterprises may arrange a person in charge of accounting and are not required to appoint a chief accountant.
The term of appointment of a chief accountant of accounting entities in the state accounting sector, the term of appointment of a person in charge of accounting of the entities specified at Point a, Clause 2 of this Article is 5 years, after which the procedures for re-appointment of the chief accountant or the person in charge of accounting must be carried out.
When changing a chief accountant or a person in charge of accounting, the legal representative of the accounting entity or the manager or operator of the accounting entity must organize the handover of accounting work and documents between the former chief accountant/person in charge of accounting and the new chief accountant/person in charge of accounting, and at the same time notify the relevant departments within the entity and the agencies where the entity has opened transaction accounts of the full name and signature specimen of the new chief accountant/person in charge of accounting. The new chief accountant/person in charge of accounting shall be responsible for his/her accounting work from the date of taking over the work. The former chief accountant/person in charge of accounting shall still be responsible for the accounting work during the time he/she was in charge.
The Ministry of Home Affairs provides guidance on responsibility allowances, authority, procedures for appointment, re-appointment, dismissal and replacement of chief accountants and persons in charge of accounting for accounting entities in the state accounting sector.
According to the above provisions, in the case where a household business is converted into an enterprise that is a micro enterprise in accordance with the law on support for small and medium-sized enterprises, it may arrange a person in charge of accounting and is not required to appoint a chief accountant.
In the cases where a household business is converted into other types of enterprises, it must have a chief accountant as prescribed.
What are the criteria for determining a micro enterprise in the field of trade and services in terms of labor use?
At Clause 1, Article 5 of Decree 80/2021/ND-CP, the criteria for determining small and medium-sized enterprises are as follows:
Criteria for determining small and medium-sized enterprises
Micro enterprises in the fields of agriculture, forestry and fisheries; in the fields of industry and construction using labor that participates in social insurance with an average of no more than 10 people per year and total annual revenue of not more than 3 billion VND or total capital of not more than 3 billion VND.
Micro enterprises in the field of trade and services using labor that participates in social insurance with an average of no more than 10 people per year and total annual revenue of not more than 10 billion VND or total capital of not more than 3 billion VND.
Accordingly, the criteria for determining a micro enterprise in the field of trade and services using labor that participates in social insurance is an average of no more than 10 people per year and total annual revenue of not more than 10 billion VND or total capital of not more than 3 billion VND.
What are the principles of supporting micro enterprises under Decree 80?
The principles of supporting micro enterprises are stipulated in Article 4 of Decree 80/2021/ND-CP as follows:
Based on the ability to balance resources and the priority orientation for support in each period, agencies and organizations supporting small and medium-sized enterprises shall decide the number of eligible enterprises to receive support, ensuring the following principles:
Small and medium-sized enterprises that submit dossiers first shall be supported first;
Small and medium-sized enterprises owned by women, small and medium-sized enterprises employing many female workers, and small and medium-sized enterprises that are social enterprises in accordance with the law shall be supported first.
In case small and medium-sized enterprises simultaneously meet the conditions of different support levels for the same support content as stipulated in this Decree and other relevant laws, the enterprise shall choose the most beneficial support level.
In addition to specific support contents according to the scale of micro enterprises, small enterprises and medium enterprises detailed in this Decree, general support contents for small and medium-sized enterprises shall be applied to micro enterprises, small enterprises and medium enterprises that meet the support conditions specified in this Decree.
Small and medium-sized enterprises converted from household businesses, small and medium-sized innovative start-ups, small and medium-sized enterprises participating in industrial clusters and value chains shall enjoy the support contents stipulated in Chapter IV and other support contents that do not overlap with the provisions in Chapter III of this Decree.
Based on their functions and tasks and on the basis of implementation capacity, agencies and organizations supporting small and medium-sized enterprises shall directly provide support services or coordinate with agencies, organizations and individuals with capacity to provide support services to eligible small and medium-sized enterprises.
