A Reader who has email address as namnguyenx @ xx asked: I plan to set up a company and appoint a person in charge of accounting. How long can this person be in charge of the accounting work of the company?

Lawyer Pham Hang, YouMe Law Firm answers:

Article 20 of Decree 147/2016 / ND-CP detailing a number of articles of the Accounting Law regulates the chief accountant and accountant in charge as follows:

1. Accounting units must arrange chief accountants, except for those specified in Clause 2 of this Article. In case the unit has not immediately appointed a chief accountant, it shall appoint a person in charge of accounting or hire a service to be the chief accountant according to regulations. The maximum time to appoint a person in charge of accounting is 12 months. After this time, the accounting unit must appoint a chief accountant.

2. In charge of accounting:

a) State-owned accounting units include: An accounting unit has only one accountant or part-time accountant; the commune, ward and township budget accounting and financial units do not appoint chief accountants, but only appoint the accountant in charge.

b) Micro-enterprises in accordance with the law on support for small and medium-sized enterprises may be arranged to be in charge of accounting without having to arrange chief accountants.

3. The time limit for appointing chief accountants of the accounting units in the State accounting domain, the time limit for appointment of chief accountants of the units defined at Point a, Clause 2 of this Article is 5 years after that. Implementing the procedures for re-appointment of chief accountants and accountants.

4. When the chief accountant or accountant is changed, the legal representative of the accounting unit or the manager or operator of the accounting unit must organize the hand-over of the work and accounting documents between the accountants. The chief accountant, in charge of the former accountant and the chief accountant, is in charge of the new accountant, and at the same time informs the relevant departments in the unit and the agencies where the entity opens the transaction account of his / her full name and signature sample of the chief accountant, in charge of the new accountant. The new chief accountant or accountant is responsible for his or her accounting work from the day on which the work is handed over. The former chief accountant and accountant are still responsible for the accounting work during their time in charge.

5. The Ministry of Home Affairs shall guide the work responsibility allowance, competence and procedures for the appointment, reappointment, dismissal, replacement of chief accountants and accountants of accounting units in the accounting domain government.

Thus, in case the enterprise has not immediately appointed a chief accountant, a person in charge of accounting will be arranged for a maximum of 12 months. After this time, the enterprise must appoint a chief accountant.