Foreign auditing firms perform audits in Vietnam ?

Foreign auditing firms perform audits in Vietnam ?

Is a foreign investor being a foreign audit firm permitted to conduct audit activities in Vietnam by the way of capital contribution to an audit firm already established and operating in Vietnam to establish an audit firm in Vietnam? Are foreign investors allowed to establish a 100% foreign direct investment (FDI) company with audit business in Vietnam?

Foreign audit firms:

Foreign auditing firms perform audit activities in Vietnam in the form of: contributing capital with auditing firms already established and operating in Vietnam to establish auditing firms (Clause 1, Article 36 of the Law on Independent Auditing No. 11/VBHN-VPQH dated December 31, 2015).

Certificate of eligibility for audit service business in Vietnam:

A limited liability company with two or more members, when applying for a Certificate of eligibility for auditing service business, must fully satisfy the following conditions: Having a business registration certificate, an enterprise registration certificate or investment certificate as prescribed by law; Having at least five practicing auditors, of which at least two capital-contributing members are required; The legal representative, director or general director of the limited liability company must be a practicing auditor; Ensuring legal capital according to the Government's regulations; The capital contribution of members being organizations must not exceed the amount prescribed by the Government. The representative of an organization member must be a practicing auditor (Clause 1, Article 21 of the Law on Independent Auditing No. 11/VBHN-VPQH dated December 31, 2015).

Legal capital:

Legal capital for a limited liability company is 3 (three) billion Vietnamese Dong; From January 1, 2015, the legal capital is 5 (five) billion Vietnamese Dong (Clause 1, Article 5 of Decree No. 03/VBHN-BTC dated January 14, 2019).

Member's capital contribution percentage:

An organization member may contribute up to 35% of the charter capital of an audit limited liability company with two or more members. In case there are many capital-contributing organizations, the total capital contribution of these organizations shall not exceed 35% of the charter capital of the limited liability company with two or more members (Clause 1, Article 6 of Decree No. 03/VBHN-BTC dated January 14, 2019).

To summarize, foreign investors are only allowed to conduct audit activities in Vietnam by the way of capital contribution with auditing firms already established and operating in Vietnam, but are not allowed to establish a 100% foreign direct investment company (FDI company) in audit activities in Vietnam./.

Foreign audit company providing audit services in Vietnam ?

  DMS Law office in Vietnam
Director
(Signed)
Lawyer Do Minh Son

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