I. Legal Basis

Accounting Law 2015

Decree 174/2016/ND-CP

Decree 41/2018/ND-CP

II. Is it mandatory for a company to have a chief accountant?

Companies are required to have a chief accountant. If they have not found a qualified person for the position, the company can use accounting services or appoint an acting accountant for a period of up to 12 months. After this period, the company must appoint a chief accountant.
Micro-enterprises may appoint an acting accountant without the obligation to appoint a chief accountant, under the following conditions:

• The number of employees participating in social insurance does not exceed 10 people.
• The total capital for the year does not exceed 3 billion VND.
• The annual revenue does not exceed 10 billion VND for commercial or service enterprises and 3 billion VND for construction or agricultural enterprises.

Thus, all businesses are required to appoint a chief accountant, except for micro-enterprises.

III. Conditions to become a Chief Accountant or Acting Accountant

• Must have professional ethics, honesty, integrity, and comply with the law.
• Must have a professional qualification in accounting from intermediate level or higher.
• Must have a certificate of chief accountant training.
• For chief accountants with intermediate or college qualifications: must have at least 3 years of experience; for chief accountants with a university degree: at least 2 years of experience.
• Must not be a person prohibited by law from holding the position of chief accountant in a company.

IV. Penalties for improper appointment of a Chief Accountant

The Chief Accountant or Acting Accountant is an essential position required in every company. If a company violates the regulations in the appointment process, it will be penalized as follows:

1. A fine of 5-10 million VND in the following cases

• Failure to reappoint the chief accountant or acting accountant within the prescribed period.
• Failure to transfer work when there is a change in the chief accountant or acting accountant.
• Failure to notify when changing the chief accountant or acting accountant.

2. A fine of 10-20 million VND in the following cases

• Failure to appoint or designate a chief accountant.
• Appointment of a person as chief accountant or acting accountant who does not meet the required qualifications, conditions, and procedures.

V. Notes when appointing a Chief Accountant or Acting Accountant

A company cannot have both a chief accountant and an acting accountant at the same time.

The law does not specify the number of chief accountants a company can have, but each company is allowed only one chief accountant who is the main person responsible for managing and accounting for the cash flow. This means a company may have multiple accountants, but only one chief accountant.

One person may serve as the chief accountant for multiple companies if they are capable of handling the responsibilities.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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