Can the wife be the chief accountant? of a small private company owned by the husband?

If the husband is the owner of a small private company, can the wife be the chief accountant for her husband’s company?

1. What is a small enterprise according to the law?

Pursuant to Article 4 of the Law on Support for Small and Medium Enterprises 2017, the criteria for determining small and medium enterprises are specified as follows:

“Article 4. Criteria for determining small and medium enterprises

1. Small and medium enterprises include micro enterprises, small enterprises and medium-sized enterprises, with an average annual number of employees participating in social insurance of not more than 200 people and meeting one of the following two criteria:

a) Total capital not exceeding 100 billion VND;

b) Total revenue of the preceding year not exceeding 300 billion VND.

2. Microenterprises, small enterprises and medium-sized enterprises determined according to the fields of agriculture, forestry, fisheries; industry and construction; trade and services.

3. The Government regulates this Article in detail.”

In addition, the law also provides detailed instructions for each field according to Article 5 of Decree 80/2021/ND-CP detailing and guiding the implementation of a number of articles of the supporting law. Support for small and medium-sized enterprises, determine the criteria for small and medium-sized enterprises, as follows:

“Article 5. Criteria for determining small and medium-sized enterprises

1. Micro-enterprises in the fields of agriculture, forestry, fisheries, industry and construction employing workers participating in social insurance with an average of no more than 10 people per year and total revenue of the year not exceeding 3 billion VND or total resources The year’s capital must not exceed 3 billion VND.

Micro-enterprises in the field of commerce and services that employ workers participating in social insurance with an average of no more than 10 people per year and the total revenue of the year must not exceed 10 billion VND or the total capital of the year must not exceed 3 billion VND.

2. Small businesses in the fields of agriculture, forestry and fisheries; The industry and construction sector employs an average of no more than 100 workers participating in social insurance per year and the total revenue of the year is not more than 50 billion VND or the total capital of the year is not more than 20 billion VND, but is not a micro-enterprise as prescribed in Clause 1 of this Article.

Small enterprises in the field of commerce and services that employ workers participating in social insurance with an average of no more than 50 people per year and total revenue of the year not exceeding 100 billion VND or total capital of the year not exceeding 50 billion VND, but are not micro enterprises as prescribed in Clause 1 of this Article.

3. Medium enterprises in the fields of agriculture, forestry and fisheries; The industry and construction sector employs an average annual workforce of no more than 200 people participating in social insurance and a year’s total revenue of no more than VND 200 billion or a year’s total capital of no more than VND 100 billion, but are not micro enterprises or small enterprises as prescribed in Clauses 1 and 2 of this Article.

Medium-sized enterprises in the field of commerce and services employ workers participating in social insurance with an average of no more than 100 people per year and total revenue of the year not exceeding 300 billion VND or total capital of the year not exceeding 100 billion VND, but are not micro enterprises or small enterprises as prescribed in Clauses 1 and 2 of this Article.

Thus, if your business meets the criteria as prescribed above, your business can be considered a small and medium-sized enterprise.

2. Conditions for appointment of chief accountant

According to Article 21 of Decree 174/2016/ND-CP, regulations on conditions to be a chief accountant are as follows:

“1. Chief accountant, in charge of accounting must have the standards specified in Points a, c, d, Clause 1, Article 54 of the Accounting Law and not fall into the cases of not being allowed to work as accountants as prescribed in Article 19 of this Decree. The Ministry of Finance regulates the organization, training and issuance of chief accountant certificates.”

For comparison, in Clause 1, Article 54 of the Accounting Law 2015, the specific provisions are as follows:

“Article 54. Standards and conditions of chief accountant

1. Chief accountant must have the following standards and conditions:

a) Standards specified in Clause 1, Article 51 of this Law;

b) Have accounting expertise and skills at intermediate level or higher;

c) Have a chief accountant training certificate;

d) Have practical work time in accounting for at least 02 years for people with accounting expertise and skills from university level or higher and actual work time in accounting is at least 03 years for people with accounting expertise and skills at intermediate or college level.

2. The Government specifically regulates the standards and conditions of chief accountants suitable for each type of accounting unit.”

Regarding specific regulations on professional qualifications of chief accountants, accounting in charge of each accounting unit is different, you can refer to Decree 174/2016/ND-CP.

3. Can a wife work as an accountant in Husband’s private enterprise?

According to Article 52 of the Accounting Law 2015, it regulates people who are not allowed to work as accountants, specifically as follows:

“Article 52. People who are not allowed to work as accountants

1. Minors; People who have been declared by the Court to have limited or lost civil act capacity; people who are subject to measures of being sent to compulsory educational establishments or compulsory detoxification establishments.

2. People who are banned from practicing accounting under a legally effective court judgment or decision; people being prosecuted for criminal liability; people who are serving a prison sentence or have been convicted of one of the crimes of violating the economic management order or crimes related to positions related to finance or accounting but have not had their criminal records erased.

3. Biological father, biological mother, adoptive father, adoptive mother, wife, husband, biological children, adopted children, siblings of the legal representative, of the head, of the director, general director and of the deputy of the head, deputy director, deputy general director in charge of finance – accounting, chief accountant in the same accounting unit, except for private enterprises, limited liability companies owned by an individual and other cases prescribed by the Government determined.

4. People who are managers, executives, storekeepers, treasurers, buyers and sellers of assets in the same accounting unit, except in private enterprises, limited liability companies owned by an individual and other cases prescribed by the Government.

Thus, in case the husband is the owner of a small and medium-sized private enterprise, the wife working as an accountant will not fall under the prohibited circumstances stated in the law.