Approval for Practicing Licenses of Accounting Firm Branches

Item

Approval for Practicing Licenses of Accounting Firm Branches

Applicants

Any qualified accounting firms

Legal Basis

1. Law of the PRC on Certified Public Accountants;

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

Conditions for Application

1. An accounting firm that applies for the practicing license of its branch shall meet the following conditions:

 

(1) It has obtained a practicing license for more than three years and established a sound internal management system.

(2) It has no less than 50 certified public accountants (CPAs), excluding those who have practiced or plan to practice in the branch.

(3) It has not received any administrative penalty for the practice within the three years before it applies for the establishment of its branch.

 

Where the accounting firm applies for the practicing license of its branch in another provincial administrative region, its business income shall amount to more than RMB 20 million.

 

Where a new accounting firm which is formed as a result of business combination or division applies for the practice licensing for its branch, the term of its practicing license may start from the date when the accounting firm prior to the business combination and division obtained its practicing license.

 

2. Where an accounting firm applies for the practicing license of its branch, a branch shall meet the following conditions:

 

(1) The head of the branch shall be the partner (or shareholder) of the accounting firm and have the practicing qualification of CPAs;

(2) It shall have no less than 5 CPAs whose practicing relations shall be transferred to the provincial CPA association where the branch is located; where the head of the branch also serves as an employee of the accounting firm, the practicing relation may not be transferred, but he or she shall not be one of the five CPAs pursuant to the Provision.

(3) It has a business address.

Documentation

(1) An application form for the practicing license of a branch;

(2) A written agreement to establish a branch in a partner meeting or shareholders’ meeting of the accounting firm;

(3) A summary statement of CPAs which shall be filled separately by an accounting firm and its branch that applies for the practicing license;

(4) A photocopy of the business license of a branch;

(5) A commitment on substantive and unified management of a branch by the accounting firm which is signed by the chief partner (or chief account) and has an official seal.

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

 

Where an accounting firm applies for the practicing license of its branch in another provincial administrative region, it shall also submit its proof of income for the previous year.

Procedures

1. The application documentation submitted by the applicant shall be examined and verified whether the copies are identical with the originals. If the application documentation is incomplete or does not take the statutory form, the qualification authority shall, on the spot or within five days, inform the applicant of all required supplements and corrections. 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. Whether an application is accepted or not accepted, a written notice affixed with the special seal of the qualification authority and dated shall be issued to the applicant.

 

2. Where the qualification authority accepts an application, it shall, within five days, publicize such information as the name of the branch, and the head of the branch in the application documentation.

 

3. The qualification authority shall make a decision to issue or reject the practicing license of the branch within 25 workdays of acceptance of the application.

 

4. Where the qualification authority decides to issue the practicing license of a branch, 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 makes the decision to reject the practicing license, it shall issue a written notice to the applicant within seven workdays from making the decision and notify the administrative department for industry and commerce. The written notice shall state the reason for rejecting the licensing, and inform the applicant of the right to apply for administrative reconsideration or file an administrative lawsuit in accordance with the law.

 

5. For an application for the establishment of a branch in another provincial administrative region, the provincial public finance department of the place where the branch is to be located shall send a copy of the approval document to the municipal finance department at the provincial level of the place where the parent accounting firm is located.

 

6. Where the application for practice licensing of a branch is rejected, cancellation should be made 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, and make a decision to issue or reject the practicing license of a branch within 25 workdays after acceptance of the application.

Fees

None

Standards for Fees

None

Recipient address

800 Zhaojiabang Road, Shanghai

Recipient time

Workdays

Method of Contact

021-54679568*17112

Qualification Authority

Shanghai Municipal Finance Bureau