Foreign investors establish accounting company in Vietnam

by HaTrang

Currently, small and medium-sized companies often prefer to use accounting services instead of setting up a separate accounting department in the company. Therefore, the establishment of companies providing accounting services is increasingly focused; especially companies of foreign investors. As a foreign investors establish accounting company in Vietnam; what documents; and procedures should be prepared to avoid legal risks? Let’s find out with LSX Law firm through the following article!

Legal grounds

Investment Law 2020

Enterprise Law 2020

Conditions for foreign investors to establish accounting company in Vietnam

Foreign investors establishing an accounting company in Vietnam will need to meet the following conditions:

Firstly, foreign investors can only set up accounting companies operating in such fields as tax declaration, chief accountant, financial consulting, accounting, setting up specific accounting systems for foreign investors. accounting units, fostering and updating accounting skills or accounting knowledge, providing, consulting, applying IT in accounting and providing other accounting-related services in accordance with Vietnamese enterprise law.

Secondly, the maximum amount of capital contributed by an organization or individual to an accounting company is 35%, the rest, accountants contributing capital to the company must ensure a ratio of over 50%.

Thirdly, the accounting firm needs to have at least 2 accountants with valid practicing certificates or qualifications, the manager and the representative must have an accountant’s degree. The business owner, director, president or legal representative of the company must be an accountant.

Lastly, establish a business with one of the types of partnership, joint venture, joint stock company or limited liability company.

Procedures for setting up an accounting company in Vietnam

Step 1: Apply for an investment certificate

An application dossier for an Investment Certificate includes:

  • A written request for the implementation of an investment project;
  • A copy of the personal identification document for the investor being an individual or certifying the legal status for the investor being an organization;
  • Proposing investment projects;
  • A copy of one of the following documents: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; financial institution’s commitment to financial support;
  • Documents on the financial capacity of foreign investors;
  • BCC contract for investment projects in the form of BCC contract

Besides, processing time : 15 days from the day on which the complete application is received; the investment registration authority shall issue the Investment Registration Certificate; In case of refusal, the investor must be notified in writing and clearly state the reason.

Step 2: Register to establish a foreign-invested accounting service company

The application dossier includes the following documents:

  • Business registration application form;
  • The company’s charter is drafted by the enterprise;
  • List of members for limited liability companies or joint stock company shareholders
  • A copy of the personal identification document for the investor being an individual or certifying the legal status for the investor being an organization;
  • The agency receiving the application : Department of Planning and Investment where the enterprise is located

In addition, processing time : 03 – 05 working days from the date of receipt of complete and valid documents Note: After receiving the business registration certificate within 30 days, the enterprise must publicly announce the business registration information on the National Portal.

Step 3: Engrave the seal and announce the seal pattern

Enterprises conduct seal engraving and notify the use of seal samples on the National Business Registration Portal. The number and sample of seals are decided by the enterprise.

Step 4: Apply for a License to qualify for the accounting service business

Records include:

  • An application form for the Certificate of eligibility to provide accounting services
  • Copy of Certificate of Business Registration, Certificate of Investment Registration or other papers of equivalent value.
  • Copies of the accounting service practice registration certificates of the practicing accountants.
  • Labor contracts with accounting service enterprises of practicing accountants.
  • Documents proving capital contribution for limited liability companies.
  • Company charter for partnerships and limited liability companies.
  • Written commitment of responsibility of the foreign enterprise.
  • Papers certifying that foreign enterprises are allowed to provide accounting services; for branches of foreign accounting service enterprises in Vietnam.

Besides, processing time : 15 days from the date of receipt of complete and valid documents.

Hope this article is useful for you, if you need any further information, please contact LSX Law firm: 0833102102

Related questions

Accounting service enterprise?

Form of business: An accounting service enterprise is established and operates in accordance with the law with one of three forms: limited liability company, partnership company and private enterprise.

Scope of business activities?

Firstly, do accounting;
Secondly, acting as chief accountant;
Thirdly, design specific accounting systems for accounting units;
Fourthly, providing and consulting on application of information technology in accounting;
Fifthly,fostering accounting profession, updating accounting knowledge;
Sixthly, Finance support;
Lastly, Tax declaration and other accounting services as prescribed by law

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