Item

Approval for Practicing Licenses of Special General Partnership Accounting Firms

Applicants

Any qualified special general partnership accounting firm

Legal Basis

1. Accounting Law of the People’s Republic of China  

2. Measures for the Practice Licensing and Supervision and Administration of Accounting Firms (Order No. 89, MOF)

Conditions for Application

1. A special general partnership accounting firm that applies for the practicing license shall meet the following conditions:

(1) It has 15 or more partners who are CPAs;

(1) It has 60 or more CPAs;

(2) It has a written partnership agreement;

(3)  It has business places;

(4) It meets other conditions prescribed by laws and administrative regulations or by the Ministry of Finance upon authorization.

2. The partner (or shareholder) of an accounting firm shall meet the following conditions:

(1) He or she has the practicing qualification of CPAs;

(2) He or she has not received any administrative penalty for the practice within the three years before serving as the partner (or shareholder);

(3) He or she has provided auditing services in the accounting firm in the last three consecutive years and for not less than ten years on an accumulative basis, or has provided auditing services in the accounting firm in the last five consecutive years after obtaining the practicing qualification of CPAs;

(4) He or she has not been given a decision of rejecting the application, disapproving the application or revoking the practicing license of an accounting firm by the provincial public finance department within three years before serving as the partner (or shareholder) due to application for the practicing license of an accounting firm by fraud, bribery or any other illicit means;

(5) He or she has a stable domicile within China with a living term of not less than six months each year, and has consecutively resided in China in the last five years or more.
Where his or her CPA practicing qualification is revoked or canceled since he or she is given any administrative penalty or criminal punishment, the number of years when he or she provides auditing services in the accounting firm before his or her practicing qualification is revoked or canceled shall not be included in the accumulative number of years prescribed in item (3), paragraph 1 of this Article.

A person who has the relevant professional qualification may, as agreed upon in the partnership agreement, serve as the partner that performs specific internal management functions or conducts the consulting business of the special general partnership accounting firm, but shall not serve as the chief partner or the partner implementing partnership affairs, or exercise control over the accounting firm in any form. The specific measures developed separately by Ministry of Finance .

3. A special general partnership accounting firm shall set up the post of chief partner, which shall be held by the partner that implements partnership affairs. The chief partner (or chief accountant) shall meet the following conditions:

(1) He or she has a stable domicile within China with a living term of not less than six months each year, and has consecutively resided in China in the last ten years or more;

Documentations

(1) An application form for the practicing license of an accounting firm;

(2) Documentation proving the compliance of the practicing experience of the partners (or shareholders) of the accounting firm with the prescribed conditions;

(3) Summary statement on CPAs that plan to practice in the accounting firm;

(4) Photocopy of the business license;

(5) Photocopy of the written partnership agreement or the company's bylaws;

(6) Photocopy of the title or use right certificate of the business place.

Where a partner (or shareholder) is an overseas person or a person migrated abroad, he or she shall also submit the valid certificate on domicile and the valid certificate on the time of residence and the letter of commitment that meet the conditions under item (5), paragraph 1 of Article 11 or item (1), paragraph 3 of Article 13 of these Measures.

(1) An application form for the practicing license of an accounting firm;

(2) Documentation proving the compliance of the practicing experience of the partners (or shareholders) of the accounting firm with the prescribed conditions;

(3) Summary statement on CPAs that plan to practice in the accounting firm;

(4) Photocopy of the business license;

(5) Photocopy of the written partnership agreement or the company's bylaws;

(6) Photocopy of the title or use right certificate of the business place.

Where a partner (or shareholder) is a foreign citizen or overseas Chinese with foreign residence, he or she shall also submit the valid certificate on domicile and the valid certificate on the time of residence and the letter of commitment that meet the conditions under item (5), paragraph 1 of Article 11 or item (1), paragraph 3 of Article 13 of these Measures.

Where a new accounting firm is formed as a result of business combination or division, the business combination or division agreement shall also be submitted when the application is filed.

The applicant shall be responsible for the authenticity, accuracy and integrity of the content of application documentation.

Procedures

1. The Accounting Division of Shanghai Municipal Finance Bureau (the qualification authority) shall examine the application documentation submitted by the applicant. If the application documentation is incomplete or does not take the statutory form, it shall, on the spot or within five workdays of receipt of the application documentation, inform the applicant of all required supplements and corrections at one time. If the application documentation is complete and complies with the statutory formal requirement, or the applicant has submitted all supplements and corrections as required, the application shall be accepted. If an application is accepted or not accepted, a written notice affixed with the special seal of the administrative authority and dated shall be issued to the applicant.

2. Where the qualification authority accepts an application, it shall, within 5 workdays, publicize such information as the name of the accounting firm, the practicing qualifications of the partners (or shareholders) and the practice time in the application documentation.

3. The decision shall be made within 25 workdays after the application is accepted whether to issue the practicing license of an accounting firm.

4. Where the qualification authority decides to issue the practicing license to an accounting firm, it shall, within 7 work days after making the decision, issue to the applicant a written notice and issue the practicing license, and make a public announcement of such a decision. Where the qualification authority decides to reject the practicing license to an accounting firm, it shall issue a written notice to the applicant within 7 work days from making such a decision and notify the administrative department for industry and commerce. The written notice shall state the reason for rejecting the license, and inform the applicant of the right to apply for administrative reconsideration or file an administrative lawsuit in accordance with the law.

5. Where the application of an accounting firm for practicing license is rejected and the enterprise continues to exist, it shall not offer services in the name of CPAs, shall not continue to use the words “accounting firm” in the enterprise’s name, and shall update the registration information at the administrative department for industry and commerce within 20 days after receiving the notice of rejection.

Deadlines

The qualification authority shall verify the application documentation submitted by the applicant from a special general partnership accounting firm, and make a decision to issue or reject the practicing license of an accounting firm within 25 days after acceptance of the application.

Fees

None

Standards for Fees

None

Recipient Address

800 Zhaojiabang Road, Shanghai

Time

Work days

Method of Contact

021-54679568*17112

Qualification Authority

Shanghai Municipal Finance Bureau