Circular of the Ministry of Finance on Printing and Promulgating the Interim Measures for the Administration of Sino-Foreign Cooperative Accounting Firms

Circular of the Ministry of Finance on Printing and Promulgating the Interim Measures for the Administration of Sino-Foreign Cooperative Accounting Firms

Cai Kuai Xie Zi [1996] No.24

March 28, 1996

The financial departments (bureaus) in all provinces, autonomous regions and municipalities directly under the Central Government,

The Tentative Measures on the Administration of Sino-foreign Cooperative Accounting Firms are hereby printed and distributed to you to be put into effect. Any problem arising from the implementation thereof is expected to report to this Ministry in time. The Chinese Institute of Certified Public Accountants will carry out a census on Sino-foreign cooperative accounting firms and rectify the same in accordance with the provisions of these Tentative Measures in the near future in order to put the opening up of Chinese accounting market into a regulative and legal track as soon as possible.

Appendix:
Interim Measures on the Administration of Sino-Foreign Cooperative Accounting Firms

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the provisions of Article 44 of the Law of the People' s Republic of China on Certified Public Accountants .

Article 2 A Sino-foreign cooperative accounting firm is a cooperative accounting firm (hereinafter referred to as "cooperative firm") that is established in China with the approval of the Chinese government by international accounting firms or overseas accounting firms (hereinafter referred to as "cooperative foreign party") and domestic accounting firms (hereinafter referred to as "cooperative Chinese party"). All activities of a cooperative firm shall comply with the provisions of Chinese laws and regulations.

Article 3 In accordance with the provisions of the Law of the People' s Republic of China on Certified Public Accountants, a cooperative firm shall join and become a member of the Chinese Institute of Certified Public Accountants to be managed thereby.

Article 4 In accordance with the provisions of the Law of the People' s Republic of China on Certified Public Accountants, the Ministry of Finance shall be responsible for the approval of establishment of cooperative firms.

Article 5 The Ministry of Finance authorizes the Chinese Institute of Certified Public Accountants to handle matters relating to examination, approval, supervision and management of cooperative firms. The Chinese Institute of Certified Public Accountants may authorize the association of certified public accountants at the provincial level where the cooperative firms locate to supervise the firms' daily activities.

Chapter II Establishment of a Cooperative Firm

Article 6 Establishment of a cooperative firm shall satisfy the following requirements:
1.
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