Is a single-member limited liability company entitled to hire outside accounting services?

Is a single-member limited liability company entitled to hire outside accounting services?

Can a single-member limited liability company hire accounting services, according to the provisions of Article 56 of the Accounting Law 2015 as follows:

Hiring accounting services, chief accountant services

1. The accounting unit may sign a contract with an accounting service business or an accounting service business household to hire accounting services or chief accountant services according to the provisions of law.

2. Hiring accounting services and chief accountant services must be made into a written contract in accordance with the law.

3. The accounting unit that hires accounting services or chief accountant service is responsible for fully, promptly, and truthfully providing all information and documents related to the work of hiring an accountant or chief accountant and fully and promptly paying the accounting service fee as agreed in the contract.

4. The person hired as chief accountant must meet the standards and conditions specified in Article 54 of this Law.

5. Enterprises, households providing accounting services and people hired as accountants or chief accountants must be responsible for accounting information and data as agreed in the contract.

In Clause 4, Article 3 of the 2015 Accounting Law, an accounting unit is an agency, organization or unit specified in Clauses 1, 2, 3, 4 and 5, Article 2 of this Law that prepares financial reports.

Accordingly, Clause 4, Article 2 of the 2015 Accounting Law is as follows:

Applicable subjects

1. The agency responsible for collecting and spending state budget at all levels.

2. State agencies, organizations, and public service units use the state budget.

3. Organizations and public service units that do not use state budget.

4. The enterprise is established and operates under Vietnamese law; branches and representative offices of foreign enterprises operating in Vietnam.

5. Cooperatives and unions of cooperatives.

Thus, according to the above regulations, a one-member limited liability company established and operating under Vietnamese law is allowed to hire accounting services from accounting service businesses or accounting service households to hire accounting services or chief accountant services according to the provisions of law.

What standards must an enterprise providing accounting services when appointing a person to perform accounting services for a single-member limited liability company have?

When an enterprise providing accounting services appointing a person to perform accounting services for a single-member limited liability company, it must meet the standards prescribed in Clause 2, Article 22 of the Decree 174/2016/ND-CP as follows:

Hiring accounting services, chief accountant services, in charge of accounting

1. Accounting units in the field of business; Organizations and public service units that do not use the state budget and other accounting units specified in Clause 3, Article 3 of this Decree may hire an accounting service business unit to act as accountant or to act as chief accountant and in charge of accounting. Public service organizations that use the state budget can hire an accounting service business unit to act as accountant or chief accountant, in charge of accounting as decided by the legal representative of the unit.

2. Accounting service business units, when appointing people to perform accounting services for customers, must ensure the provisions in Clause 1, Article 51, Article 56, Article 58 of the Accounting Law and not fall into the cases of not being allowed to do accounting or not being allowed to provide accounting services specified in Article 19 and Article 25 of this Decree.

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In Clause 1, Article 51 of the 2015 Accounting Law, when an enterprise providing accounting services appoints a person to perform accounting services for a single-member limited liability company, it must meet the following standards:

– Have professional ethics, honesty, integrity, and a sense of compliance with the law;

– Have professional qualifications and experience in accounting.

What are the rights and responsibilities of a person hired by a single-member limited liability company to provide accounting services?

In Clause 4, Article 22 of Decree 174/2016/ND-CP as follows:

Hiring accounting services, services as chief accountant, in charge of accounting math

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4. The person hired to provide accounting services has the rights and responsibilities of an accountant specified in Clauses 2 and 3, Article 51 of the Accounting Law. The person who is hired to serve as chief accountant and in charge of accounting has the rights and responsibilities of the chief accountant specified in Article 55 of the Accounting Law.

Accordingly, in Clauses 2 and 3, Article 51 of the 2015 Accounting Law, the person hired by a single-member limited liability company to provide accounting services has the following rights and responsibilities:

– Accountants have the right to independence in terms of expertise and accounting operations.

– Accountants are responsible for complying with the provisions of law on accounting, performing assigned tasks and taking responsibility for their expertise and operations.

When changing accountants, the old accountant is responsible for handing over accounting work and accounting documents to the new accountant. The former accountant must be responsible for the accounting work during his or her time as an accountant.