The Provisional Measure For Approving The Setup and Monitoring CPA Firm

Ministry of Finance People's Republic of China, No. 24 Notice

18 January 2005

The Ministry of Finance has announced the above notice on 18 January 2005, which will be implemented starting from 01 March 2005. The notice is stipulated the followings:

1. Conditions for setting up a partnership CPA firm:
- At least 2 partners;
- Agreement in written format;
- With a CPA firm name;
- Permanent working place.

2. Conditions for setting up a CPA limited company:
- At least 5 shareholders;
- Certain number of professionals;
- Registered capital not less than RMB300,000;
- M&A constituted by all shareholders;
- With a CPA firm name;
- Permanent working place.

3. The procedure of set up a CPA firm is as follows:
All partners or all shareholders apply to Ministry of Finance and Chinese Institute of Certified Public Accountants (CICPA) through Provincial Financial Bureau and process the business registration procedure after obtained the Practising License for CPA firm

Apart from the above, this notice also stipulated the followings:
- The necessary requirement of being a partner or shareholder of a CPA firm;
- The branch setting up;
- The changes and closure of the firm;
- The content of CPA firm monitor duly carried out by Ministry of Finance and Provincial Financial Bureau;
- The respective legal responsibility of unlawful behavior conducted by CPA firm or certified public accountants.

This notice is also applicable to foreigners who planned to set up CPA firm in China.

中華人民共和國財政部令第24號
二○○五年一月十八日

財政部近日發佈《會計師事務所審批和監督暫行辦法》，該辦法自2005年3月1日起施行，其中包含：

一. 設立合夥會計師事務所的條件：有2名以上的合夥人；有書面合夥協定；有會計師事務所的名稱；有固定的辦公場所。

二.設立有限責任會計師事務所的條件：有5名以上的股東；有一定數量的專職從業人員；有不少於人民幣30萬元的註冊資本；有股東共同制定的章程；有會計師事務所的名稱；有固定的辦公場所。

三.設立會計師事務所，應當由全體合夥人或者全體股東提出申請，經所在地的省級財政部門批准，同時報送財政部、中國註冊會計師協會；獲取《會計師事務所執業證書》後應依法辦理工商登記手續。

此外，該辦法還對會計師事務所的合夥人或者股東應具備的條件；會計師事務所設立分支機搆；會計師事務所的變更、終止；財政部和省級財政部門依法對會計師事務所監督檢查的內容；會計師事務所或註冊會計師的違法行?應承擔的相關法律責任等做出相應規定。

該辦法還適用于境外人員申請設立會計師事務所。