May a Wife Serve as Chief Accountant of Her Husband’s Private Enterprise?

If the husband owns a small private enterprise, may the wife serve as chief accountant for her husband’s company?

1. What is a small enterprise under the law?

Under Article 4 of the 2017 Law on Support for Small and Medium-Sized Enterprises, the criteria for identifying small and medium enterprises are as follows:

“Article 4. Criteria for identifying small and medium enterprises

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

a) Total capital not exceeding VND 100 billion;

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

2. Micro-enterprises, small enterprises and medium enterprises are identified by sector: agriculture, forestry and fisheries; industry and construction; trade and services.

3. The Government shall detail this Article.”

In addition, the law provides detailed guidance on these criteria by sector in Article 5 of Decree 80/2021/ND-CP detailing and guiding the implementation of several articles of the Law on Support for Small and Medium-Sized Enterprises, determining the criteria for small and medium enterprises, as follows:

“Article 5. Criteria for identifying small and medium enterprises

1. Micro-enterprises in agriculture, forestry and fisheries; industry and construction use employees participating in social insurance with an average annual number not exceeding 10 and total annual revenue not exceeding VND 3 billion or total annual capital not exceeding VND 3 billion.

Micro-enterprises in trade and services use employees participating in social insurance with an average annual number not exceeding 10 and total annual revenue not exceeding VND 10 billion or total annual capital not exceeding VND 3 billion.

2. Small enterprises in agriculture, forestry and fisheries; industry and construction use employees participating in social insurance with an average annual number not exceeding 100 and total annual revenue not exceeding VND 50 billion or total annual capital not exceeding VND 20 billion, but are not micro-enterprises under Clause 1 of this Article.

Small enterprises in trade and services use employees participating in social insurance with an average annual number not exceeding 50 and total annual revenue not exceeding VND 100 billion or total annual capital not exceeding VND 50 billion, but are not micro-enterprises under Clause 1 of this Article.

3. Medium enterprises in agriculture, forestry and fisheries; industry and construction use employees participating in social insurance with an average annual number not exceeding 200 and total annual revenue not exceeding VND 200 billion or total annual capital not exceeding VND 100 billion, but are not micro-enterprises or small enterprises under Clauses 1 and 2 of this Article.

Medium enterprises in trade and services use employees participating in social insurance with an average annual number not exceeding 100 and total annual revenue not exceeding VND 300 billion or total annual capital not exceeding VND 100 billion, but are not micro-enterprises or small enterprises under Clauses 1 and 2 of this Article”

Accordingly, if your enterprise meets the above criteria, it may be considered a small or medium enterprise.

2. Conditions for appointing a chief accountant

Under Article 21 of Decree 174/2016/ND-CP on the conditions for being a chief accountant, as follows:

“1. Chief accountants and persons in charge of accounting must meet the standards prescribed at Points a, c and d, Clause 1, Article 54 of the Law on Accounting (as amended and supplemented by Law No. 56/2024/QH15) and must not fall into the cases of persons not permitted to do accounting under Article 19 of this Decree. The Ministry of Finance prescribes the organization, training and issuance of chief accountant certificates.”

For reference, Clause 1, Article 54 of the Law on Accounting 2015 (as amended and supplemented by Law No. 56/2024/QH15) provides specifically as follows:

“Article 54. Standards and conditions of thechief accountant

1. The chief accountant must meet the following standards and conditions:

a) The standards prescribed in Clause 1, Article 51 of this Law;

b) Having accounting professional qualifications at intermediate level or higher;

c) Having a chief accountant training certificate;

d) Having at least 02 years of actual accounting work experience for persons with accounting professional qualifications at university level or higher, and at least 03 years of actual accounting work experience for persons with accounting professional qualifications at intermediate or college level.

2. The Government shall detail the standards and conditions of chief accountants appropriate to each type of accounting unit.”

For specific provisions on the professional qualifications of chief accountants and persons in charge of accounting in each accounting unit, you may refer to Decree 174/2016/ND-CP.

3. May the wife work as an accountant in her husband’s private enterprise?

Under Article 52 of the Law on Accounting 2015 (as amended and supplemented by Law No. 56/2024/QH15) on persons not permitted to do accounting, specifically as follows:

“Article 52. Persons not permitted to do accounting

1. Minors; persons declared by the Court as having limited or lost civil act capacity; persons serving the measure of placement in compulsory education facilities or compulsory drug rehabilitation facilities.

2. Persons banned from practicing accounting under a legally effective Court judgment or decision; persons under criminal prosecution; persons serving prison sentences or convicted of crimes infringing upon the economic management order or position-related crimes relating to finance and accounting whose criminal records have not been expunged.

3. Biological parents, adoptive parents, wife, husband, biological children, adopted children, and full siblings of the legal representative, head, director, general director and deputies of the head, deputy directors and deputy general directors in charge of finance-accounting work, and chief accountants in the same accounting unit, except in private enterprises, single-member limited liability companies owned by an individual, and other cases prescribed by the Government.

4. Persons who are managers, executives, storekeepers, cashiers, or buyers/sellers of assets in the same accounting unit, except in private enterprises, single-member limited liability companies owned by an individual, and other cases prescribed by the Government.”

Accordingly, where the husband is the owner of a small or medium private enterprise, the wife working as an accountant does not fall into the prohibited cases stated in the law.

ANT Legal