Establishing an FDI company in Vietnam for the first time? One of the biggest administrative challenges for FDI enterprise managers is declaring social insurance (SI). Continuous changes and complex regulations and policies make it difficult for FDI enterprises to fully understand and comply correctly from the outset. In this article, KMC will provide you with a detailed guide to initial social insurance declaration to help FDI enterprises operate smoothly from the very first days of operation.
Guide to Initial Social Insurance Declaration: Dossiers and Procedures
Preparation of Complete Dossiers
According to the latest regulations, enterprises are required to prepare a complete dossier set, focusing on the following two main groups:
Dossiers for the Entity (Enterprise)
- Form TK3-TS is mandatory and the most important for enterprises participating in social insurance for the first time, as it is used to register for the issuance of the enterprise code. This code will be used for all subsequent transactions with the Social Insurance Authority.
- Form D01-TS is used to consolidate the list and types of documents of all employees required to be registered. This serves as an important basis for the Social Insurance Authority to manage and collect arrears (if any discrepancies arise).
- Form D02-TS (or D02-LT) provides detailed declaration of each employee participating in social insurance (SI), health insurance (HI), and unemployment insurance (UI). The information in this list (full name, date of birth, ID number, and salary level) must be accurate, as it determines the issuance of social insurance books and health insurance cards for employees.
Dossiers for Employees (Accompanying Documents)
- Form TK1-TS applies to each employee who has not yet been issued a personal social insurance code.
- Notarized copy of the Enterprise Registration Certificate/Investment Registration Certificate of the company.
- Copy of the employee’s ID card (Citizen Identification Card) or Passport (for verification).
- Signed labor contract.
Special Notes for FDI Enterprises:
All dossiers must be prepared in Vietnamese. For proper names and job titles of foreign employees (e.g., Japanese experts), notarized translations must be accurate and consistent across all documents to avoid discrepancies in information.
5-Step Process for Initial Social Insurance Declaration
Step 1: Determine the Deadline – 30 Days
In accordance with legal regulations, enterprises must submit the social insurance registration dossier within 30 days from the date of signing the labor contract with the first employee subject to compulsory participation. Failure to meet this deadline may result in administrative penalties.
Step 2: Prepare and Complete the Dossier
As mentioned, all required documents under the “Preparation of Dossiers” section must be fully prepared. Ensuring absolute accuracy when completing Forms TK3-TS, D01-TS, D02-TS, and TK1-TS will save significant time on amendments later.
Step 3: Submit the Dossier to Obtain the Enterprise Code
Submit Form TK3-TS to the provincial/municipal Social Insurance Authority where the enterprise’s head office is located. Within 1–7 working days, the enterprise will be issued a social insurance unit code.
Step 4: Declare Employee Increase and Submit the Complete Dossier
After obtaining the enterprise code, the enterprise proceeds to submit the complete dossier (including the employee list) via one of the following methods: direct submission at the Social Insurance Authority, via postal services, or online through the Vietnam Social Insurance electronic portal (digital signature required).
Step 5: Receive the Results
Within no more than 5 working days from the receipt of a valid dossier, the Social Insurance Authority will issue social insurance books and health insurance cards to employees, completing the procedure.
Notes for FDI Enterprises When Making Initial Social Insurance Declarations
Accurate Determination of Salary as the Basis for SI Contributions
The salary used as the basis for social insurance contributions is not merely the contractual salary. It includes various allowances and benefits (except for those explicitly excluded by law). Therefore, foreign experts must clearly distinguish between base salary and allowances such as housing, transportation, and children’s tuition, as these may be included in the contribution base.
Proper Handling of Foreign Employees in Compliance with Regulations
Under Vietnamese law, foreign employees working in Vietnam for one month or more are subject to compulsory social insurance participation (except for certain cases under international treaties to which Vietnam is a signatory). The dossier for foreign employees must include a valid passport and a valid Work Permit/Temporary Residence Card. Enterprises must carefully verify the nationality of employees to determine social insurance obligations.
After reviewing this guide to initial social insurance declaration, you may understand how to proceed; however, the initial declaration is only the first step. In the long term, FDI enterprises will face ongoing challenges such as workforce fluctuations, policy changes, and periodic reporting requirements. To ensure 100% compliance with local regulations, FDI enterprises may consider business advisory such as those provided by KMC. We will handle social insurance declarations so you can focus on your core business strategy.
