Can a company that is doing business in accounting services contribute capital to establish another company that does business in accounting services?

What is the accounting service business?

According to Clause 13, Article 3 of the 2015 Accounting Law, it is stipulated as follows:

“Article 3. Explanation of terms

[…]

13. Accounting service business is the provision of accounting services, acting as chief accountant, preparing 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.

Accordingly, accounting service business is the provision of accounting services, acting as chief accountant, preparing 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.

Who is not allowed to register to practice accounting services?

According to Clause 4, Article 58 of the 2015 Accounting Law, regulations on registration to practice accounting services, in which:

“Article 58. Registration to practice accounting services

[…]

4. People who are not allowed to register to practice accounting services include:

a) Officials, civil servants and public employees; officers, professional soldiers, workers, defense officials, People’s Police.

b) People who are banned from practicing accounting under a legally effective Court judgment or decision; people being prosecuted for criminal liability; People who have been convicted of one of the crimes of violating the economic management order related to finance and accounting but have not had their criminal record erased; People who are being subjected to administrative measures of education in communes, wards, towns, sent to compulsory education establishments, compulsory detoxification establishments;

c) People who have been convicted of serious crimes that violate economic management order but have not yet had their criminal records expunged;

d) People who have been administratively sanctioned for violations of the laws on finance, accounting, and auditing but have not yet completed a period of 06 months from the date of completion of the penalty decision in case of a warning penalty or not yet expired 01 year from the date of completion of the completion of the other administrative penalty decision;

dd) Person suspended from practicing accounting services.”

Thus, people who are not registered to practice accounting services include:

– Officials, civil servants and public employees; officers, professional soldiers, workers, defense officials, and People’s Police.

– People who are banned from practicing accounting under a legally effective court judgment or decision; people being prosecuted for criminal liability; People who have been convicted of one of the crimes of violating the economic management order related to finance and accounting but have not had their criminal record erased; People who are being subjected to administrative measures of education in communes, wards, towns, or being sent to compulsory education establishments or compulsory detoxification establishments;

– People who have been convicted of serious crimes that violate economic management order but have not had their criminal records erased;

– Persons who have been administratively sanctioned for violations of the laws on finance, accounting, and auditing have not yet expired within 06 months from the date of complete execution of the sanctioning decision in case of a warning or within 01 year from the date of completion of other administrative sanctioning decisions;

– People who are suspended from practicing accounting services

Can a company providing accounting services contribute capital to establish another accounting service company?

According to Article 59 of the 2015 Accounting Law, the regulations on accounting service businesses are as follows:

– Accounting service enterprises 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.

Thus, based on the above regulations, your company is doing business in accounting services so it is not allowed to contribute capital to establish another accounting enterprise, except in the case of capital contribution with a foreign enterprise.