In today’s globalized economy, accounting services have become an indispensable part of enterprises’ financial management activities. It not only helps enterprises ensure the accuracy and transparency of financial information but also optimizes financial management processes. The following article provides readers with an overview and an analysis of the legal regulations and matters regarding accounting services.

I. Understanding of accounting services

1. What is an accounting service?

Pursuant to Clause 13 Article 3 of the Law on Accounting 2015:

  • An accounting service business means the provision of accounting services, chief accountant services, preparation of financial statements, accounting consultancy, and other tasks falling within the scope of accounting work as prescribed by this Law to organizations and individuals in need.

Accordingly, accounting services include services related to accounting, chief accountant services, preparation of financial statements, accounting consultancy, and other accounting-related tasks provided to enterprises, organizations, and individuals.

2. Benefits of accounting services

Accounting services offer numerous practical benefits to enterprises, particularly in financial management and legal compliance, including:

  • Cost savings: Enterprises are not required to recruit full-time accounting staff, thereby reducing personnel and training costs.
  • High level of expertise: Accounting professionals possess extensive experience and in-depth knowledge of legal regulations, helping enterprises avoid errors and tax and financial risks.
  • Ensuring legal compliance: Accounting services assist enterprises in fully and accurately complying with regulations on taxation, accounting, and other relevant laws.

II. Legal regulations on accounting services

1. Establishment of accounting services 

Under current laws, in order to conduct accounting service business, an enterprise must be established in one of the forms prescribed in Clause 1 Article 59 of the Law on Accounting 2015, including:

  • Limited liability companies with two or more members;
  • Partnerships;
  • Private enterprises.

The establishment of the accounting service provider must satisfy statutory conditions and complete enterprise registration procedures in accordance with the Law on Enterprise and the Law on Accounting.

2. Conditions for establishing accounting services 

Pursuant to Clause 2 Article 59 of the Law on Accounting 2015:

  • An enterprise may only conduct accounting service business when it satisfies the business conditions prescribed by this Law and is granted a Certificate of Eligibility for Accounting Service.

Conditions for issuance of the Certificate of Eligibility for Accounting Service under Article 60 of the Law on Accounting 2015 include:

  • Possession of the Enterprise Registration Certificate, Investment Registration Certificate, or other equivalent documents in accordance with law;
  • Having at least two practicing accountants (for limited liability companies, these must be two capital-contributing members; for partnerships, two general partners);
  • The legal representative, director, or general director of the limited liability company or partnership must be the practicing accountant; for a private enterprise, the enterprise owner must be the practicing accountant and concurrently act as the director. 

In the case of a branch of a foreign accounting service enterprise operating in Vietnam, the following conditions must be satisfied:

  • Being permitted to provide accounting services under the laws of the country where the enterprise’s headquarters is located;
  • Having at least two practicing accountants, including the branch director or general director;
  • The branch director or general director must not concurrently hold managerial or executive positions in another enterprise in Vietnam;
  • Having a written undertaking submitted to the Ministry of Finance to assume responsibility for all obligations and commitments of the branch in Vietnam.

Accordingly, enterprises wishing to conduct accounting service business must satisfy the above conditions.

III. Questions regarding accounting services

1. In which cases is a household business providing accounting services not permitted to provide accounting services to another accounting unit?

Pursuant to Article 68 of the Law on Accounting 2015, a household business providing accounting services is not permitted to provide accounting services to another accounting unit where the person responsible for management or administration of the accounting service enterprise, the representative of the household business, or the person directly performing accounting services falls into one of the following cases:

  • Being the biological father and mother, adoptive father and mother, spouse, biological child, adopted child, or sibling of the person responsible for management or administration or the chief accountant of the accounting unit, except where the accounting unit is a private enterprise or a single-member limited liability company owned by an individual, or other cases prescribed by the Government;
  • Having economic or financial relationships with such accounting unit;
  • Lacking sufficient professional competence or failing to satisfy conditions for providing accounting services;
  • Currently providing chief accountant services to a client as an organization that has economic or financial relationships with such accounting unit;
  • Being required by the accounting unit to perform tasks inconsistent with professional ethical standards or accounting and financial professional requirements;
  • Other cases as prescribed by law.

Accordingly, if falling into any of the above cases, the household business providing accounting services is not permitted to provide accounting services to another accounting unit.

2. In what cases will an enterprise providing accounting services be suspended from conducting accounting service business due to violations of accounting standards?

Pursuant to Point b Clause 1 Article 69 of the Law on Accounting 2015:

An enterprise providing accounting services shall be suspended from conducting accounting service business in one of the following cases:

  • Committing professional violations or violations of accounting standards or accounting professional ethics standards that cause serious consequences or have the actual potential to cause serious consequences.

Accordingly, the enterprise providing accounting services will be suspended from conducting the accounting service business if it violates accounting standards and such violation causes, or has the actual potential to cause, serious consequences.

3. Are auditors permitted to register for practicing accounting services, and what are the procedures for registration?

Pursuant to Clause 1 Article 58 of the Law on Accounting 2015, a person holding an auditor certificate in accordance with the Law on Independent Audit may register to practice accounting services through an accounting service enterprise or a household business providing accounting services if the following conditions are satisfied:

  • Having full civil act capacity;
  • Having at least 36 months of practical experience in finance, accounting, or auditing from the date of university graduation;
  • Fully participating in professional knowledge update programs as prescribed.

Procedures for registration to practice accounting services under Article 6 of Circular No. 296/2016/TT-BTC are as follows:

  • Step 1: The applicant prepares one complete dossier in accordance with regulations.
  • Step 2: The legal representative of the accounting service enterprise or the household business reviews the dossier and signs confirmation on the Application for issuance of the Certificate of Registration for Practicing Accounting Services.
  • Step 3: The accounting service enterprise or household business compiles a list of individuals proposed to be granted Certificates of Registration for Practicing Accounting Services by the Ministry of Finance in accordance with the prescribed form.
  • Step 4: The Ministry of Finance reviews the dossier.
  • If the dossier is invalid: The applicant is requested to provide explanations or supporting documents through the accounting service enterprise or household business. If such explanations or documents are not provided, the Ministry of Finance shall refuse to issue the Certificate of Registration for Practicing Accounting Services.
  • If the dossier is valid: the Ministry of Finance shall consider and issue the Certificate of Registration for Practicing Accounting Services to the applicant practicing through the accounting service enterprise or household business.

4. What obligations must foreign accounting service enterprises providing cross-border accounting services fulfill?

Pursuant to Article 32 of Decree No. 174/2016/NĐ-CP, foreign accounting service enterprises providing cross-border accounting services are subject to the following obligations:

  • Arranging personnel to ensure the quality of accounting services, and comply with regulations on prohibited acts and cases in which accounting services may not be provided;
  • Complying with Vietnamese accounting standards and accounting regimes when providing cross-border accounting services in Vietnam;
  • Paying taxes and completing other related financial obligations in accordance with Vietnam’s tax laws;
  • Submitting semi-annual reports to the Ministry of Finance on the implementation of cross-border accounting service contracts arising during the reporting period in Vietnam in accordance with the reporting form prescribed by the Ministry of Finance;
  • Appointing a responsible person to represent the enterprise in reporting to and explaining matters to competent Vietnamese authorities regarding accounting service contracts, accounting service dossiers, and other issues related to cross-border accounting service provision in Vietnam;
  • Within 120 days from the end of the financial year, submitting to the Ministry of Finance annual financial statements and written comments and assessments from the authority managing accounting service practice in the country where the enterprise’s headquarters is located regarding the enterprise’s compliance with laws on accounting service business and other relevant regulations; executing the rights and obligations of accounting service enterprises as prescribed by law.

5. How long does it take for an enterprise to be granted a Certificate of Eligibility for cross-border accounting service business after submitting a valid dossier?

Pursuant to Clause 2 Article 34 of Decree No. 174/2016/NĐ-CP on procedures for issuance of a Certificate of Eligibility for cross-border accounting service business:

  • Within 15 days from the date of receipt of a complete and valid dossier, the Ministry of Finance shall consider and issue the Certificate of Eligibility for cross-border accounting service business to the foreign accounting service enterprise. In case of refusal, the Ministry of Finance must respond in writing and clearly state the reasons.

Accordingly, within 15 days from the date of receipt of a complete and valid dossier, the enterprise shall be granted the Certificate of Eligibility for cross-border accounting service business.

IV. Consultancy and implementation services related to accounting services

The above is NPLaw’s article on current regulations governing accounting services. With a team of experienced lawyers and legal specialists, NPLaw provides reputable and professional legal services, ensuring the best protection of clients’ lawful rights and interests. Should you require legal assistance, please contact NPLaw for consultation and support.