Notice of the Ministry of Finance on Supporting Accounting Firms to Establish Branches and Carry out Pilot Operations within the China (Shanghai) Pilot Free Trade Zone

财政部关于支持会计师事务所在中国（上海）自由贸易试验区设立分所并开展试点工作的通知

Promulgating Institution: Ministry of Finance

Document Number: Cai Kuai [2014] No.20

Promulgating Date: 04/04/2014

Effective Date: 04/04/2014

颁布机关: 财政部

文   号: 财会[2014]20号

颁布时间: 04/04/2014

实施时间: 04/04/2014

To finance departments (bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government, and the Finance Commission of Shenzhen Municipality,

With a view to earnestly enforcing the Decision of the Central Committee of the Communist Party of China on Several Major Issues on Comprehensively Deepening Reform and the Notice of the State Council on Printing and Distributing the "Overall Plan for the China (Shanghai) Pilot Free Trade Zone" (Guo Fa [2013] No. 38), and promoting the profession of certified public accountants ("CPA") to seize opportunities to accelerate development, this Notice is hereby given as follows on further expanding liberalization and supporting accounting firms to set up branches within the China (Shanghai) Pilot Free Trade Zone ("FTZ"):

1. An accounting firm that satisfies the following conditions is supported to set up one branch within the FTZ on a pilot basis: the accounting firm shall either adopt the partnership structure or be restructured to a special general partnership one year ago (the time period shall be calculated from the date of restructuring approval by the relevant finance department to the date of submission of the written application for establishment of a branch within the FTZ); the accounting firm shall have properly completed internal integration; and the accounting firm shall enjoy stable operation. Such an accounting firm is allowed to use the words "Shanghai Pilot Free Trade Zone" in the name of its branch, with the standard name being the Shanghai Pilot Free Trade Zone Branch of XX Accounting Firm or the Pilot Free Trade Zone Branch of Shanghai XX Accounting Firm.

  各省、自治区、直辖市财政厅（局），深圳市财政委员会:

  为了认真贯彻《中共中央关于全面深化改革若干重大问题的决定》和《国务院关于印发中国（上海）自由贸易试验区总体方案的通知》（国发〔2013〕38号），促进注册会计师行业抢抓机遇加快发展，现就进一步扩大开放、支持会计师事务所在中国（上海）自由贸易试验区（以下简称上海自贸区）设立分所的有关问题通知如下:

  一、支持合伙制或者完成特殊普通合伙转制满一年（按自财政部门批准转制日起至提出设立上海自贸区分所的书面申请日止计算）、内部整合到位且运行平稳的会计师事务所先行试点，在上海自贸区设立一家分所，允许其使用含“上海自贸试验区”字样的分所名称，标准用名为XX会计师事务所上海自贸试验区分所或上海XX会计师事务所自贸试验区分所。

2. For the time being, establishment of branches within the FTZ shall be governed by the provisions on the examination and approval of the establishment of branches across different provincial-level administrative divisions. To set up a branch within the FTZ, an accounting firm shall satisfy the conditions prescribed by Article 23 and Article 24 of the Interim Measures for the Examination and Approval and Supervision of Accounting Firms (Order No. 24 of the Ministry of Finance), the conditions prescribed by Article 3 of the Interim Administrative Measures for the Branches of Accounting Firms (Cai Kuai [2010] No. 2) and the conditions prescribed by Article 3 of the Notice of the Ministry of Finance and the China Securities Regulatory Commission on Adjusting the Application Conditions for Accounting Firms Qualified for Securities Business (Cai Kuai [2012] No. 2). Application materials and examination and approval procedures shall be governed by reference to the aforesaid three documents.

  二、在上海自贸区设立分所暂按跨省级行政区划设立分所审批办理。会计师事务所在上海自贸区设立分所,应当同时具备《会计师事务所审批和监督暂行办法》(财政部令第24号)第二十三条、第二十四条规定的条件、《会计师事务所分所管理暂行办法》(财会〔2010〕2号)第三条规定的条件和《财政部证监会关于调整证券资格会计师事务所申请条件的通知》(财会〔2012〕2号)第三条规定的条件。申请材料和审批流程参照上述三个文件的相关规定办理。

3. As regards an accounting firm whose head office is registered and established in Shanghai Municipality, its FTZ branch shall be uniformly managed by the head office on a centralized basis. Where an accounting firm has set up a branch in Shanghai, but its head office is registered and established in another province (autonomous region or municipality directly under the Central Government), its FTZ branch shall be directly managed by its Shanghai branch, and the person in charge of the Shanghai branch shall concurrently serve as the person in charge of the FTZ branch. Where an accounting firm has not established any branch in Shanghai prior to the implementation hereof, and its head office is registered and established in another province (autonomous region or municipality directly under the Central Government), its application for establishing a branch in Shanghai shall no longer be accepted if the accounting firm applies for setting up a branch within the FTZ.

  三、总所设立登记在上海市的会计师事务所,其上海自贸区分所由总所实施集中统一管理。总所设立登记在其他省(自治区、直辖市)的会计师事务所,且已在上海市设立分所的,其上海自贸区分所由上海分所直接管理,上海自贸区分所负责人由上海分所负责人兼任。总所设立登记在其他省(自治区、直辖市)的会计师事务所,且在本《通知》施行之前尚未在上海市设立分所的,如其申请设立上海自贸区分所,不再接受其设立上海分所的申请。

4. An accounting firm that intends to set up a branch within the FTZ shall apply to the Shanghai Municipal Finance Bureau for the latter to conduct examination and approval pursuant to the law. Where an accounting firm originally in the form of a Sino-foreign contractual joint venture applies to establish a FTZ branch within the transitional period for localization restructuring (prior to December 31, 2017) pursuant to the Law on Certified Public Accountants and the Plan for Localization Restructuring of Accounting Firms in the Form of Sino-foreign Contractual Joint Ventures (Cai Kuai [2012] No. 8), it shall submit an application to both the Ministry of Finance ("MOF") and the Shanghai Municipal Finance Bureau at the same time, and its application materials shall be reviewed by the Shanghai Municipal Finance Bureau which shall then report the same to the MOF for approval.

  四、拟在上海自贸区设立分所的会计师事务所,应当向上海市财政局提出申请,并由其依法审批。原中外合作会计师事务所依据《注册会计师法》和《中外合作会计师事务所本土化转制方案》(财会〔2012〕8号)要求,在本土化转制过渡期内(2017年12月31日之前)申请设立上海自贸区分所的,应当同时向财政部和上海市财政局提出申请,申请材料由上海市财政局审查后报财政部批准。

Where an accounting firm applies to establish a FTZ branch, its managing partner shall issue a written undertaking to conduct unified management of the proposed FTZ branch in the following five aspects, namely, personnel, finance, practicing standards, quality control and information management. The written undertaking shall be signed by the managing partner for confirmation, and be made public by the examination and approval authority together with other application materials.

  会计师事务所申请设立上海自贸区分所的,由该会计师事务所的首席合伙人出具书面承诺,承诺对其上海自贸区分所在人事、财务、执业标准、质量控制、信息管理等方面实施“五统一”管理。该书面承诺应由首席合伙人签字确认,并由审批机关连同其他申请材料予以公示。

5. Seizing the opportunities for setting up branches within the FTZ, accounting firms shall tighten internal governance and quality control on the one hand, while step up talent reserve and business development on the other hand, and actively carry out high-end, comprehensive, externally-oriented and international business, so as to promote both their business and talents to "go global", and continuously enhance the competitiveness and influence of China's CPA profession.

  五、会计师事务所要抓住在上海自贸区设立分所的机遇,一手抓内部治理和质量控制,一手抓人才储备和业务开拓,积极开展高端型、综合型、外向型、国际化业务,促进会计师事务所业务和人才“走出去”,不断提升我国注册会计师行业的竞争力和影响力。

6. Accounting firms shall strengthen the unified management in terms of personnel, finance, practicing standards, quality control and information management of their FTZ branches, and separately explain the business carried out by their FTZ branches in the information submitted for annual record-filing. Relevant requirements in this regard shall be separately prescribed by the MOF when making arrangements for annual record-filing.

  六、会计师事务所应加强对上海自贸区分所的“五统一”管理,在年度报备信息中单独说明上海自贸区分所的业务开展情况,有关要求由财政部在布置年度报备工作时另行规定。

Accounting firms are prohibited from using the disguise of establishing branches within the FTZ to absorb practice teams or allow practice teams to be affiliated thereto for practice, or carry out loose management in violation of the requirements on unified management in terms of personnel, finance, practicing standards, quality control and information management. FTZ branches that carry out management or business in violation of the requirements on unified management in the foregoing five aspects shall be ordered to make rectification within the prescribed time period, and shall have their licensing revoked in accordance with the law in the case of ineffective rectification. Other issues uncovered shall be promptly addressed and reported to the MOF.

  禁止借在上海自贸区设立分所之名吸收、允许任何执业队伍挂靠执业或实行违背“五统一”要求的松散管理。对于上海自贸区分所违背“五统一”要求实施管理、开展业务的,责令限期整改。整改不力的,依法撤回分所许可。对发现的其他问题,要及时处理并反馈我部。

Ministry of Finance

  财政部

April 4, 2014

  2014年4月4日