NEW BUSINESSES DO NOT HAVE TO MAKE INITIAL DECLARATION TO TAX, LABOR AND INSURANCE AGENCIES FROM OCTOBER 15, 2020.

On October 15th 2020, the Government issued Decree 122/2020/ND-CP regulating inter-agency coordination in settlement of procedures for registration of establishment of enterprises, branches and representative offices, declaration of labor use, grant of identification numbers of units participating in social insurance, and registration for use of invoices of enterprises.

Some remarkable contents include the process of coordination between relevant agencies and certain new business registration forms.Accordingly, business registration agencies are the focal point to receive dossiers and return results, the inter-agency coordination shall be performed by means of mutual connection to share data between information systems. Therefore, businesses do not have to go to each particular state agency on labor, social insurance and tax to carry out the compulsory administrative procedures as before, which can save time, minimize errors when filling  information and promptly update changes during the business's operation process. 

Only those state agencies mentioned below are subject to this Decree:

1. Provincial business registration authority as prescribed in the Law on Enterprises and guiding documents;
2. Labor authority according to the provisions of the Labor Code;
3. Social insurance agencies under the Law on Social Insurance
4. Tax authorities in accordance with the Law on Tax Administration.

The process of coordination takes place as follows: 

1. The business registration agency shall receive the application for business registration and checking its validity
   1. The business registration shall share information with the tax authority. 
   2. The tax authority shall provide information regarding the identification numbers of enterprises, branches, representative offices, and decentralization powers to managing tax offices. 
   3. The business registration agencies shall issue the Certificate of Registration and inform about managing tax offices as well.
   4. After granting the Certificate of Registration, the business registration agency shall share with social insurance agencies the statutory information and changes if there is a change in the contents. 
   5. When enterprises pay social insurance premiums, social insurance agencies shall share information on the number of employees who pay social insurance premiums with business registration agencies in order to perform the state management of enterprises after establishment registration.
   6. The business registration agency shall share relevant information with the Labor, War Invalids and Social Affairs Division or Labor, War Invalids and Social Affairs Department where the enterprise, branch or representative office is located and with the Ministry of Labor, Invalids and Social Affairs to serve the state management of labor.

Under the provisions of this Decree, the new application forms for enterprise registration will include the contents specified in the Law on Enterprises and the declaration of the employment status, the declaration of social insurance premiums’ payment method, and registration for use of invoices. Enterprises and business registration agencies use the registration form and the notice of operation registration issued together with this Decree instead of the previous documents, specifically as follows:

“The application forms for enterprise registration, notice of registration of branch, representative office/business location promulgated together with this Decree shall replace Appendices I-1 to I- 5 and Appendix II-11 issued together with the Circular No. 02/2019/TT-BKHDT dated January 8th, 2019 of the Minister of Planning and Investment amending and supplementing a number of articles of Circular No. 20/2015/TT-BKHDT dated December 1st, 2015 of the Minister of Planning and Investment providing guidance on enterprise registration.”

Moreover, enterprises, branches or representative offices when performing administrative procedures at the state agencies in charge of labor, social insurance and tax shall provide their name and identification number instead of Copies of the Certificate of Business registration, Certificate of registration of branch operation, representative office and related documents as before.

This Decree takes effect on October 15th, 2020.

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