Are foreign investors being foreign auditing firms allowed to establish branches of foreign auditing firms in Vietnam and conduct audit activities in Vietnam?
Foreign auditing firms:
Foreign auditing firms perform audit activities in Vietnam by the way of establishing branches of foreign auditing firms (Clause 2, Article 36 of Law on Independent Auditing No. 11/VBHN-VPQH dated December 31, 2015).
Certificate of eligibility for audit service business:
A branch of a foreign auditing firm in Vietnam, when applying for a Certificate of eligibility for business in auditing services, must fully satisfy the following conditions: A foreign auditing firm is allowed to provide independent audit services under the provisions of law of the country where the foreign audit firm is headquartered; There are at least two practicing auditors, including the branch director or general director; The director or general director of a branch of a foreign auditing firm may not hold managerial or executive positions in other enterprises in Vietnam; The foreign auditing firm must send a written document to the Ministry of Finance to ensure that it is responsible for all obligations and commitments of the branch of the foreign auditing firm in Vietnam; The foreign audit firm must ensure that its capital is not lower than the legal capital as prescribed by the Government (Clause 4, Article 21 of the Law on Independent Auditing No. 11/VBHN-VPQH dated December 31, 2015).
The foreign auditing firm that applies for the Certificate of eligibility for auditing service business to a branch of the foreign auditing firm in Vietnam must have equity on the balance sheet (the statement of financial position) of at least equivalent to 500,000 (five hundred thousand) US dollars as of the end of the most recent year to the date of application for such a Certificate
The allocated capital of a branch of a foreign audit firm in Vietnam is not lower than the legal capital for a limited liability company specified in Article 5 of this Decree (Clause 1, 2, Article 8 of Decree No. 03/ VBHN-BTC dated January 14, 2019).
Therefore, an investor being a foreign audit firm is allowed to set up a branch for auditing activities in Vietnam, when all conditions are met and procedures are followed in accordance with Vietnamese law./ .
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|DMS Law office in Vietnam|
Lawyer Do Minh Son
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