18 December, 2018
The Government issued Decree 151/2018/ND-CP dated November 7, 2018 amending and supplementing a number of decrees for investment and business conditions within the state management scope of the Ministry of Finance ("Decree 151").
Question: What are remarkable amendments and supplements as stipulated in Decree 151?
Answer:
Decree 151 takes effect from the date of its promulgation and features the following:
Field of accounting and auditing
Decree 151 repeals the condition on obtaining the Certificate of Eligibility for audit service business along with four other conditions as stated in Decree 84/2016/ND-CP for an auditing Organization to be approved for auditing a unit related to the general public’s interests.
As opposed to Decree 174/2016/ND-CP and Decree 17/2012/ND-CP, foreign auditing and accounting enterprises are now exempted from three conditions, especially including the voluntary coverage of professional liability insurance for accountants and auditors practicing in Viet Nam.
In addition, the regulation that the representative for the organization’s capital contribution at an auditing limited liability company must be the auditor practicing in such audit company pursuant to Decree 17/2012/ND-CP has also been abolished by Decree 151.
Field of lottery and electronic prize games for foreigners
Decree 151 abrogates the previous provisions of Decree 78/2012/ND-CP on operation models, management and organization structure and standards of managers of lottery enterprises.
For the business of electronic prize games for foreigners, Decree 151 amends Decree 86/2013/ND-CP on the conditions that all business points of an enterprise must meet. In addition, Decree 151 also amends the conditions for any enterprise engaged in dealing in electronic prize games for foreigners to be granted the Certificate of business eligibility, including the conditions on registered business lines, requirements on managers, executives and business plan.
Field of credit rating
Annulling the regulation that a credit rating enterprise wishing to be granted the Certificate of business eligibility must have the Certificate of enterprise registration; undertake to implement professional processes; plans of business and personnel as stipulated in Decree 88/2014/NDCP.
At the same time, a number of conditions and criteria to become General Directors, members of the credit rating Committee, analysts are also cut.
Field of casino business, horse, dog race and international football betting
The regulation that before organizing casino business activities, enterprises must meet the conditions for security and order in accordance with Decree 03/2017/ND-CP is abolished.
The conditions for the managers and executives of any casino dealing enterprise are also simplified pursuant to Decree 151.
Abolishing the conditions for undertaking to comply with the Vietnamese and international law; undertaking to ensure social security and order while simplifying the conditions for plans for investing in technology systems, technical equipment and business software with regard to the procedures for applying for the Certificate of investment registration in horse and dog race stadium projects, including betting services on horse and dog races and the pilot organization of international football betting by Decree 06/2017/ND-CP.
Field of managing voluntary retirement funds and other services
Decree 151, which amends Decree 88/2016/NDCP, allows the bank supervising retirement fund management to provide other services to the retirement fund that is under a supervision contract, but operated by separate professional business units.
In addition, the conditions for expected turnover and expenses for the next 5 years upon issuance of the Certificate of Business Eligibility have also been abolished.
Field of insurance business
A series of provisions of Decree 73/2016/ND-CP have been amended and supplemented. Namely: Cutting some general conditions for organizations and individuals contributing capital to establish insurance enterprises and insurance brokerage enterprises and removing general conditions for insurance enterprises, foreign branches and insurance brokerage enterprises that are expected for establishment.
Regarding particular conditions for setting up insurance limited liability companies, cutting conditions for foreign organizations contributing capital to their establishment, including a reduction of the number of years of experience from 10 to 7 years; domestic organizations are no longer required to operate in the fields of finance, banking and insurance upon capital contribution for establishment.
Regarding the particular conditions for establishing an insurance joint-stock company, abolishing the conditions applied particularly to founding shareholders.
Regarding the particular conditions for setting up branches of foreign non-life insurance enterprises, Decree 151 abolishes the regulation on obtaining permission from the state management agencies in charge of insurance in the locality where they are headquartered; no written authorization is required to the branch Director who is responsible before the Vietnamese law for all activities of the foreign branch. Pursuant to Decree 151, upon participating in capital contribution to establish an insurance brokerage enterprise, foreign organizations only need to meet the condition on 7 years of work experience. Field of price evaluation Decree 151 abrogates the provisions of Decree 89/2013 on the maximum percentage of capital contribution of founding shareholders and capital contributing members as organizations in an evaluation company.
Field of securities business
Legal capital for Vietnamese companies trading securities in their own way reduces by half to VND50 billion rather than VND100 billion as stipulated in Decree 58/2012/ND-CP. At the same time, abolishing the conditions that organizations contribute capital to establishment of securities trading companies must not have accumulated losses and amending the conditions for establishment of branches and offices of foreign securities trading organizations.
Decree 151 amends Decree 86/2016/ND-CP on conditions on working offices, facilities; equipment, personnel and shareholders, capital contributing members upon issuing establishment and operation Licenses to securities companies. Securities companies are allowed to cut down certain conditions upon registering margin trading and day trading services. To amend the conditions for issuance and revision of the establishment and operation License, setting up branches of the fund management company; cut merger consolidation conditions of securities investment companies; to cut down the conditions for registration as a supervisory bank. Decree 151 also abolishes indirect offshore investment conditions and reduces the conditions for establishment of branches, representative offices abroad and offshore investment by domestic securities trading organizations./.
VGP
For further information, please contact:
Dang The Duc, Partner, Indochine Counsel
duc.dang@indochinecounsel.com
