Does the director of a single-member limited liability company or private enterprise need to participate in social insurance?
EXPERTIS Please answer the question above:
Owners of private enterprises and directors of single-member limited liability companies who receive salaries are required to participate in mandatory social insurance.
If you do not receive a salary from the company, you are not required to participate in social insurance.
Explanation for the above answer:
According to Clause 1, Article 2 of Decree 115/2015/ND-CP dated November 11, 2015, the subjects required to participate in compulsory social insurance include: (Effective from January 1, 2016)
“a) Persons working under indefinite-term employment contracts, fixed-term employment contracts, seasonal employment contracts, or contracts for a specific job with a term of at least 03 months but less than 12 months, including employment contracts signed between the employer and the legal representative of a person under 15 years of age as stipulated by labor law;
b) Employees working under fixed-term employment contracts of 1 month to less than 3 months (effective from January 1, 2018)
c) Officials, civil servants, and public employees as defined by the law on officials, civil servants, and public employees;
d) Defense workers, public security workers, and other personnel working in cryptographic organizations;
d) Business managers, cooperative managers They receive a salary;
e) Non-professional personnel working at the commune, ward, or town level;”
According to Article 4 of the Enterprise Law No. 68/2014/QH13 dated November 26, 2014, it is stipulated that:
“18. Business managers are managers of companies and managers of private businesses, including private business owner, general partner, Chairman of the Board of Members, member of the Board of Members, Chairman of the company, Chairman of the Board of Directors, member of the Board of Directors, Directors or General Managers and individuals holding other managerial positions. "Authorized to sign company transactions on behalf of the company as stipulated in the company's charter."
Therefore, the Director of a single-member limited liability company needs to participate in social insurance.
For further information, please see the other services offered by EXPERTIS.
