Procedures for paying social insurance premiums of representative offices

by DungTran

Procedures for paying social insurance premiums of representative offices. Where is the representative office paying social insurance premiums in Vietnam? Let us learn about this topic with LSX Law firm below:

What is a representative office?

A representative office is a dependent unit of the enterprise; which has the task of representing by authorization for the interests of the enterprise and protecting those interests. Representative offices do not perform business functions of enterprises and have the following main characteristics:

Firstly, representative offices do not incur independent tax obligations; but the managing enterprise will make the tax payment without the representative office needing to perform this obligation.

Secondly, the representative office has its certificate of operation registration; and its seal to serve the internal activities of the representative office.

Thirdly, representative offices may not perform business functions; may not sign economic contracts with the representative office’s seal, but still sign contracts under the authorization of the enterprise.

So, to know if a representative office is entitled to insurance for employees working at the office? Where is the representative office to pay social insurance premiums? Procedures for paying social insurance premiums of representative offices. Please continue to follow the article below.

Where is the representative office paying social insurance premiums?

If you are wondering where is the representative office to pay social insurance premiums? Whether you can make insurance contributions at a representative office or not; you can refer to the provisions of the law on where to pay social insurance that we mentioned below.

Pursuant to the provisions of Clause 3, Article 7 of Decision 595/QD-BHXH as amended by Clause 1; Article 1 of Decision 888/QD-BHXH in 2018 stipulating the areas to pay social insurance premiums as follows:

“The unit with its head office in any province shall register to participate in paying social insurance premiums in that province according to the decentralization of the provincial social insurance agency.

Any branch of an enterprise operating in a locality shall pay social insurance premiums in that locality or at the parent company.

So, based on the above terms, we can answer the question where is the representative office paying social insurance premiums? Accordingly, in principle, employees will have to participate in social insurance at the social insurance agency; Where the enterprise has its head office and employees working at the branch; they can choose to pay social insurance premiums at the place where the branch is located or at the head office of the parent company. However, for a company’s representative office; the payment of social insurance premiums must be made at the parent company’s head office with a representative office; and are not allowed to pay social insurance premiums at the representative office location. 

Procedures for paying social insurance premiums of representative offices

Procedures for the first time payment of social insurance premiums of a representative office are carried out as follows:

  • Dossier to register for social insurance contributions for the first time: For enterprises, it is necessary to have:

Firstly, the declaration of the unit participating in the social insurance payment

Secondly, the list of employees participating in social insurance payments both at the head office and at the representative office of that unit.

Thirdly, the Information List

In addition, the Labor Contract

Also, the household registration book, the employee’s identity card 

  • Procedure to register forpaying social insurance premiums of representative offices:

Firstly, prepare documents as mentioned above, essential documents such as labor contract; employee’s identity card, household registration book, etc., as a basis to fill in the forms.

After that, the Enterprise will apply for a code of the unit participating in social insurance to carry out procedures such as: reporting an increase/decrease in labor; arrears records… for the next time. Within 7 days, the business will have a unit code.

After having the unit code; the enterprise prepares and fills in the employee’s information in the form to carry out the procedure for reporting an increase in labor.

Next, submit the application to the competent authority

Finally, the competent authority shall review the dossier and issue the social insurance number within 5 working days from receipt of the complete dossier.

Hope this article about Procedures for paying social insurance premiums of representative offices is helpful for you!

If you have any questions; please contact Lawyer X for quick and best legal services: 0833102102.

Related questions

What is Social insurance ?

Social insurance is an alternative guarantee to partially compensate employees’ income; when they lose or reduce their income due to sickness, maternity, work accidents and occupational diseases, disability, unemployment, old age, death, on the basis of a financial fund due to the contribution of the parties participating in social insurance; have the protection of the State according to the law; to ensure the safety of life for employees and their families; at the same time contribute to ensuring social safety. Social insurance is the mainstay of the social security system in each country.

What are the current social insurance regimes?

Currently, our country promulgates the following social insurance regimes: Sicknesses; Maternity insurance regime; Unemployment insurance regime; Pension regime; Health insurance regime; Death mode; Occupational accident regime; Occupational disease regime.

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