The procedure for registering insurance for a newly established company is the procedure for applying for a social insurance unit code. This is a mandatory regulation that all businesses must implement and ensure the rights of employees. Companies need to pay attention to the detailed regulations on the registration procedure to implement it correctly. Please refer to the following article of Viet My to learn more about this issue.

1. When must a newly established company register for insurance?

There is no law that stipulates a specific time when a start-up company must pay insurance. However, the company must contribute to the insurance payment as soon as people agree to sign a written labor contract. The Social Insurance Law 2014 stipulates the following:

Employees working for a company who are Vietnamese citizens are eligible to participate in compulsory social insurance, including:

• Employees working for a company under an indefinite-term labor contract, a fixed-term contract or doing a certain job with a term from 3 months to less than 12 months, including all labor contracts signed between the employer and the legal representative of the employer under the labor law;
• Employees working under a labor contract with a term from 1 month to 3 months;

Therefore, companies that have signed labor contracts with part-time/seasonal employees for more than 1 month are also obliged to pay social insurance. Therefore, when business owners hire employees under contract, they must pay full insurance to avoid legal violations and penalties.

2. Cases where enterprises do not participate in social insurance

According to Article 2 of the Law on Social Insurance 2014 on persons obliged to participate in social insurance, both employees and employers must sign a labor contract with a term of at least one month before being required to pay social insurance. Therefore, companies will not participate in social insurance for the following subjects:

• Employees who have accepted a probationary period at the company but do not have a labor contract with the company.
• The job lasts less than one month and is only a verbal agreement between the two parties without a written labor contract.

3. Procedure for registering insurance for a newly established company

To pay social insurance for employees, start-up enterprises must complete the social insurance registration procedure with the Ministry of Health and report the increase in the registered workforce.

3.1 Insurance registration dossier for newly established companies

Decision No. 772/QD-BHXH issued on June 15, 2018 promulgating administrative procedures in the field of social security, health insurance, and unemployment insurance payment has supplemented Decision No. 595/QD-BHXH.

According to Decision No. 772/QD-BHXH, the first social insurance registration dossier of an enterprise includes:

Declaration form of participating unit, adjustment of social insurance and health insurance information (Form TK3-TS): Enterprises must declare detailed information: unit name; unit code; tax code; Company registration address, transaction address or contact address…

List of employees participating in social insurance, health insurance, unemployment insurance, occupational accident and disease insurance (Form D02-TS): The company must make a list of employees participating in social insurance, health insurance, unemployment insurance, insurance according to the provisions of law. occupational accident and disease according to Form D02-TS.

Information declaration (Form D01-TS): The company makes a list of information according to Form D01-TS, listing employee information.

The above documents are issued together with Decision No. 772/QD-BHXH. If the components of the dossier are not designated as originals, the original, a copy with the original for comparison, a certified copy or a copy from the main book can be presented.

3.2 Procedures for registering social insurance for newly established companies

According to Decision No. 772/QD-BHXH, the procedure for paying social insurance for the first time for enterprises and units includes the following steps:

Step 1: Prepare the application for paying social insurance for the first time

Enterprises perform the following activities in turn:

Enter the social insurance number into the corresponding forms for employees who have been issued a social insurance number;

Guide employees to declare participation and adjust social insurance and health insurance information (form TK1-TS) for employees who have not yet obtained a social insurance number (including employees who do not remember their social insurance number).

Create 01 set of documents “Registering and adjusting the payment of compulsory social insurance, health insurance, unemployment insurance, occupational accident and disease insurance; social insurance book, health insurance card”

Step 2: Submit the completed application

Enterprises, employers and employees working abroad submit directly to the social insurance agency, choosing to submit the application in one of the following 3 forms:

• Submit the application via electronic social insurance transaction;
• Submit the application via public postal service;
• Submit the application directly at the social insurance agency.

In case the company or unit submits the application via electronic transaction, the application is prepared using the Vietnam Social Insurance reporting software or the I-VAN organization; Electronically sign the application and send it to the Vietnam Social Insurance Information Portal.

Step 3: Receive the settlement results from the social insurance organization.

After submitting the required documents to the social insurance agency, the company is waiting for the settlement results. The time limit for receiving the results is no more than 5 days from the date of receiving the complete documents as prescribed.

Enterprises, employers and employees working abroad submit directly to the social insurance agency to receive the social insurance book, health insurance card processed by the social insurance agency in the form of registration to receive via email, receive directly at the document return department from the social insurance agency or receive by post.

It should be noted that within 30 days from the date of signing the labor contract or the labor contract or the effective date of the recruitment decision, the employer must submit a complete dossier as prescribed.

3.3 Procedure for registering social insurance codes for enterprises

In Section 1, Chapter III of Consolidated Document No. 2089/VBHN-BHXH, the procedure for registering social insurance codes for enterprises is as follows:

Step 1: Enter the social insurance code into the corresponding forms for employees who have been granted a social insurance code.

Note: Employers must provide complete and accurate information in the participation declaration and formalize social insurance and health insurance information (Forms TK1-TS, TK3-TS, D02-TS) to register and adjust regulations on payment of social insurance, health insurance, unemployment insurance, occupational accident and disease insurance; issue social insurance books and health insurance cards.

Step 2: The company submits the application to the Social Insurance Agency

Step 3: The Social Insurance Agency receives the application and processes it according to regulations

Step 4: Receive the results including: Social insurance book and health insurance card

4. Procedures for registering to participate in social insurance for newly established enterprises

Step 1: Buy electronic social insurance declaration software

Buy social insurance software for the unit. To facilitate participation, increase, decrease, close books as well as carry out maternity insurance payment procedures, enterprises must buy social insurance software. Currently, there are many social insurance software providers such as VNPT, Efy, Viettel, etc.

After completing the purchase, it is necessary to register to apply for a social insurance unit code. The unit code is a series of 7 letters and numbers. Each company will have its own unit code. When companies participate in insurance, they will receive a unit code. Companies that carry out procedures to change address or dissolve must carry out procedures to close the unit code after cutting all employees.

Step 2: Register the unit code

There are two ways to register the unit code.

Method 1: You can register on the electronic social insurance software. To register a unit code on the social insurance software, you need to prepare a scan of the company’s business registration book and then fill in the company information in the boxes on the software interface.

Remember to check the box for the unit participating in social insurance for the first time (without a unit code) to get the code. Attach the company registration file to send to the insurance agency for verification. After filling in all the information, the company only needs to electronically sign the confirmation. After sending the information for 01 to 02 days, the insurance agency will issue a “Unit Code”.

Method 2: Visit the Vietnam Social Insurance website to register the unit code and track the status of the application processing.

Step 3: Report an increase in labor

After receiving the code from the social insurance agency, the company can log in to the software and perform the operations of increasing or decreasing work. Documents required to declare an increase in labor force include: ID card or Citizen ID card, insurance book (for those who have been issued an insurance book), employee household registration book, employee phone number. Employees must add information to VSSID, where the employee’s medical examination and treatment process is recorded.

When the company registers and pays social insurance for employees, the social insurance agency will issue the employee a social insurance book and health insurance card after 5 days.

If the enterprise registers to participate in social insurance for the first time, it can combine the documents from step 1 and step 2 when submitting the application for social insurance registration. Please note that it is necessary to attach photo identification documents of employees related to social insurance.
The company needs to make a list of officers and employees participating in social insurance. Insurance fees for employees, household registration book

5. What should businesses pay attention to when carrying out insurance registration procedures for newly established companies?

The company must complete the first social insurance registration procedure within 30 days from the date the company signs the labor contract/employment contract or recruitment contract with the employee.

Each business when registering for social insurance for the first time for its operations at the administrative agency at the district, city, or town level will be given a unit code so that the social insurance management agency in this place is responsible for monitoring separately.

When changing address to another district or province, the company must declare a reduction in the number of employees and “close the social insurance book” of the employee. And when moving to a new district, county, or province, the business must register a new social insurance unit code and submit the first social insurance application. Except for some enterprises whose management agency is the Social Insurance Agency of the province or centrally-run city, when moving to another province, they will have to re-file the application, but in the province or city, it is not necessary.

After the company reports an increase in the number of employees, employees who already have a social insurance book will only be issued a health insurance card. If the social insurance book is lost, they will have to make additional documents to re-issue the book, then the application for the increase will be approved.

The above article is information shared by VIET MY LAW AND ACCOUNTING to clarify the issue of insurance registration procedures for newly established companies. After reading the article, we hope you will have the answer to the question of when to participate in social insurance. If you have any further questions about social insurance services, please contact us immediately via the information below, we are always ready to provide free advice 24/7 for you.