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Official Gazette

Wednesday, September 28, 2022

Decree No. 17/2012/ND-CP: Minimum capital of independent audit firms raised

Updated: 10:51’ - 28/03/2012

An audit limited liability company must have a legal capital of VND 3 billion. However, from January 1, 2015, the legal capital for audit firms will be VND 5 billion and an audit firm must have at least 2 capital-contributing members who are certified public accountants practicing in the firm.  

These requirements are specified in Government Decree No. 17/2012/ND-CP of March 13, which details and guides the implementation of a number of articles of the Law on Independent Audit, and will take effect on May 1.

Under the Decree, businesses and organizations of which annual financial statements are required by law to be audited by audit firms or Vietnam-based branches of foreign audit firms include foreign-invested businesses; credit institutions established and operating under the Law on Credit Institutions; financial institutions, insurance businesses, re-insurance businesses, insurance brokerage businesses and branches of foreign non-life insurance businesses; and public companies, issuing institutions and securities-trading institutions.

State enterprises other than those operating in the fields involving state secrets as classified by law which must have their annual financial statements audited; and businesses and institutions of which corporations and state enterprises holding at least 20 per cent of voting shares are also subject to this kind of auditing.

A foreign auditing firm that applies for a certificate of eligibility for auditing service provision for its Vietnam-based branch must have an equity capital of at least USD 500,000 on its accounting balance sheet at the end of the fiscal year preceding the time of application. Allocated capital of a Vietnam-based foreign firm branch must not be lower than the legal capital prescribed for audit limited liability companies.-


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