What is accounting service business? How are the procedures for registering an accounting service business regulated?

What is accounting service business?

According to Clause 13, Article 3 of the 2015 Accounting Law, regulations on accounting service business are as follows: as follows:

“Article 3. Interpretation of terms

In this Law, the following terms are understood as follows:

…

13. Accounting service business is the provision of accounting services, acting as chief accountant, preparing financial reports, accounting consulting and other jobs within the scope of work. accounting according to the provisions of this Law for organizations and individuals in need.”

 

Who is eligible to register for accounting service business?

Subjects permitted to provide accounting services as specified in Article 59 of the 2015 Accounting Law include:

– Accounting service businesses are established according to the following types:

+ Limited liability company with two or more members;

+ Partnership company;

+ Private enterprise.

– Enterprises are only allowed to conduct business in accounting services when they ensure business conditions according to the provisions of this Law and are granted a Certificate of eligibility to conduct business in accounting services.

– Accounting service businesses are not allowed to contribute capital to establish other accounting service businesses, except in the case of contributing capital to foreign accounting service businesses to establish accounting service businesses in Vietnam.

– Foreign accounting service businesses conduct accounting service business in Vietnam in the following forms:

+ Contributing capital to an accounting service business that has been established and operating in Vietnam to establish an accounting service business;

+ Establishment of a branch of a foreign accounting service enterprise;

+ Providing cross-border services according to Government regulations.

What are the conditions and procedures for registering an accounting service business according to the regulations?

* According to Article 60 of the 2015 Accounting Law, the conditions for registering an accounting service business are specified, specifically as follows:

– A limited liability company with two or more members is granted a Certificate of eligibility to provide accounting services when the following conditions are met:

+ Have a Business Registration Certificate, Investment Registration Certificate or other documents of equivalent value according to the provisions of law;

+ Have at least two capital contributing members who are practicing accountants;

+ The legal representative, director or general director of the limited liability company must be a practicing accountant;

+ Ensure the capital contribution ratio of practicing accountants in the enterprise and the capital contribution ratio of organizational members according to Government regulations.

-. A partnership is granted a Certificate of eligibility to provide accounting services when it meets all of the following conditions:

+ Have a Business Registration Certificate, Investment Registration Certificate or other documents of equivalent value according to the provisions of law;

+ Have at least two partners who are practicing accountants;

+ The legal representative, director or general director of the partnership must be a practicing accountant.

– A private enterprise is granted a Certificate of eligibility to provide accounting services when it meets all of the following conditions:

+ Have a Business Registration Certificate, Investment Registration Certificate or other documents of equivalent value according to the provisions of law;

+ Have at least two practicing accountants;

+ The owner of a private business is a practicing accountant and also the director.

– Branches of foreign accounting service enterprises in Vietnam are granted a Certificate of eligibility for accounting service business when the following conditions are met:

+ Foreign accounting service businesses are allowed to provide accounting services according to the laws of the country where the foreign accounting service business is headquartered;

+ Have at least two practicing accountants, including the director or general director of the branch;

+ The director or general director of a branch of a foreign accounting service enterprise must not simultaneously hold a management or executive position in another enterprise in Vietnam;

+ Enterprises providing foreign accounting services must send a document to the Ministry of Finance ensuring responsibility for all obligations and commitments of their branches in Vietnam.- Within 06 months from the date of registration of accounting service business, if the accounting service business enterprise or branch of foreign accounting service enterprise business in Vietnam is not issued a Certificate of eligibility for accounting service business or in case the Certificate of eligibility for accounting service business business has been revoked, the enterprise or foreign accounting service enterprise branch in Vietnam must immediately notify the business registration authority to carry out procedures to delete the phrase. “accounting services” in the name of the enterprise or branch.

* Accounting service business registration procedures are prescribed as follows:

(1) Documentation principles are specified in Article 4 of Circular 297/2016/TT-BTC:

– Copies of documents and diplomas must be authenticated by a competent authority according to the provisions of law.

– The application for a Certificate of eligibility to conduct business in accounting services must be made in Vietnamese. Documents accompanying the application in a foreign language must be translated into Vietnamese and the translation must be certified according to the provisions of Vietnamese law.

– Documents issued by foreign agencies or organizations or notarized or authenticated abroad must be consularly legalized in accordance with Vietnamese law, except in cases where consular legalization is exempted under international treaties to which the Socialist Republic of Vietnam is a member.

– The organization applying for a Certificate of eligibility to provide accounting services must be responsible for the accuracy and truthfulness of the documents submitted to the Ministry of Finance.

(2) Issuance of Certificate of eligibility to conduct business in accounting services is specified in Article 5 of Circular 297/2016/TT-BTC as follows:

– Dossier to request issuance of Certificate of eligibility to conduct business in accounting services shall comply with the provisions of Article 61 of the Law on Accounting, including:

+ Application for issuance of Certificate of eligibility to provide accounting services.

+ Copy of Business Registration Certificate, Investment Registration Certificate or other documents of equivalent value.

+ Copy of the Certificate of registration to practice accounting services of practicing accountants.

+ Labor contracts with accounting service businesses of practicing accountants.

+ Documents proving capital contribution for limited liability companies.

+ Company charter for partnerships and limited liability companies.

+ Written commitment to take responsibility of the foreign enterprise, documents certifying the foreign enterprise’s license to provide accounting services for the branch of the foreign enterprise providing accounting services in Vietnam.

Application for issuance of Certificate of eligibility to provide accounting services for limited liability companies with two or more members, partnerships and private enterprises shall be made according to the form specified in Appendix 1 issued with this Circular.

Application for issuance of Certificate of eligibility to conduct business in accounting services for branches of foreign enterprises providing accounting services in Vietnam shall be made according to the form specified in Appendix 2 issued with this Circular.- The organization applying for a Certificate of eligibility to do business in accounting services shall send a set of documents as prescribed in Clause 1 of this Article to the Ministry of Finance and pay the appraisal fee to issue a certificate of eligibility to do business in accounting services.

– The form of Certificate of eligibility to conduct business in accounting services specified in Appendix 3 issued with this Circular includes the following main information:

+ Name of enterprise providing accounting services; Name of the enterprise providing accounting services in a foreign language (if any); Abbreviated name (if any); Head office address;

+ Full name of the legal representative, full name of the Director (General Director) of the accounting service enterprise;

+ Number and date of issuance of Certificate of eligibility to provide accounting services;

+ Terms and conditions that accounting service businesses must comply with when using the Certificate of eligibility for accounting service business.

– The deadline for granting the Certificate of eligibility to conduct business in accounting services shall comply with the provisions of Clause 1, Article 62 of the Law on Accounting.

(3) Time limit for issuance of Certificate of eligibility to conduct business in accounting services is specified in Article 62 of the Accounting Law 2015 as follows:

– Within 15 days from the date of receipt of complete and valid documents, the Ministry of Finance shall issue a Certificate of eligibility to provide accounting services to the enterprise; In case of refusal, a written response must be made clearly stating the reason.

– In case it is necessary to clarify issues related to the application dossier for a Certificate of eligibility for business in accounting services, the Ministry of Finance requires the enterprise applying for a Certificate of eligibility for business in accounting services to explain. The time limit for issuance of the Certificate of eligibility to conduct business in accounting services is calculated from the date of receipt of additional explanatory documents.

However, according to the provisions of Article 68 of the 2015 Accounting Law, those who fall into the following cases will not be allowed to provide accounting services, specifically:

Enterprises providing accounting services are not allowed to provide accounting services to other accounting units when the person responsible for managing and operating the enterprise providing accounting services or the person directly performing accounting services of the enterprise falls into the following cases:- Is the biological father, biological mother, adoptive father, adoptive mother, wife, husband, biological child, adopted child, sibling of the person responsible for management, administration, or chief accountant of the accounting unit, except in cases where the accounting unit is a private enterprise, a limited liability company owned by an individual and other cases prescribed by the Government;

– Have economic and financial relationships with that accounting unit;

– Insufficient professional capacity or eligibility to perform accounting services;

– Providing services as chief accountant for customers who are organizations that have economic and financial relationships with that accounting unit;

– The accounting unit requests to perform tasks that do not comply with professional ethical standards or do not comply with professional and accounting and financial requirements;

– Other cases as prescribed by law.

Thus, accounting service business is the provision of accounting services, chief accountant services, preparation of financial reports, accounting consulting and other tasks within the content of accounting work according to the provisions of this Law for organizations and individuals in need. Enterprises that want to do business in accounting services must be eligible to do business in accounting services, meet the conditions to be allowed to do business in this service, complete the application for a Certificate of eligibility to do business in accounting services, and must not fall into the cases that are not allowed to do business in accounting services according to the provisions of law.