Registration of LLC as an employer
- The procedure for registering employers
- The need to submit an application for registration
- De-registration in the SFR
- Registration of an individual entrepreneur as an employer
Registration of a company in this status is a mandatory procedure that all legal entities operating in the territory of the Russian Federation undergo.
Since January 1, 2023, amendments to the law have entered into force in Russia, according to which the Social Fund of Russia (SFR) has started working. The body united the Pension Fund (PFR) and the Social Insurance Fund (FSS). The new fund, as the legal successor of the FIU, is responsible for accounting for insurance companies under mandatory pension and social insurance in case of temporary disability, as well as in connection with maternity. Thus, LLC registration does not take place in the PFR, but in the SFR.
To avoid confusion, let’s look into this issue in more detail.
The procedure for registering employers
Registration of companies in the SFR is carried out after their registration with the Federal Tax Service. This procedure has been in effect since 2017. After entering the information into the Unified State Register of Legal Entities, the tax authority independently transmits information about the new company to the Social Fund within three working days. In turn, the latter registers the company as an insured with the assignment of an individual registration number. The date of registration in the SFR will be similar to the date of registration of the company specified in the Unified State Register of Legal Entities.
Accounting is carried out automatically on the basis of information from the PFR, the FSS and the Federal Tax Service. The Social Fund of Russia uses the existing registration data of policyholders, which will later be replaced with new registration numbers of the SFR. Until the moment of its assignment, companies use the old PFR number.
An electronic document to confirm registration with the SFR will be sent to the email address specified in the company’s registration application. If necessary, the company can submit an application for the issuance of a paper document on registration with the Social Fund of Russia. The paper will be sent to the company within three working days. Together with the document, the company receives a notification about the amount of the injury rate, which depends on the type of activity of the company.
It is important to note that the registration number assigned in the SFR is necessary to identify the company in case of its appeal to the Social Fund or for the implementation of mandatory social contributions – the amount that the employer pays at its own expense. Subsequently, this money will be used to pay for social benefits and pensions.
The need to submit an application for registration
As noted above, most often the registration of a company in a Social Fund takes place almost automatically after the company is registered with the tax service.
However, if an LLC plans to open a separate division to conduct business in other regions, then it should be registered in the SFR. To do this, an application is submitted to the subordinate territorial authority of the SFR for registration at the location of the separate subdivision. At the same time, the unit must have its own bank accounts and make payments to individuals. A separate subdivision is registered within 30 days from the date of registration. Administrative liability in the form of a fine is provided for late registration of a branch or representative office. Its maximum size is 10 thousand rubles.
De-registration in the SFR
The procedure for de-registration of policyholders is carried out within three working days from the date of submission by the tax service of data on the closure of the company. The date of de-registration will be the date of termination of the organization’s activities, the record of which is contained in the Unified State Register of Legal Entities.
Registration of an individual entrepreneur as an employer
Since 2017, sole proprietors may not register with the FIU even if they hire employees. Previously, the Federal Tax Service independently distributed payments between the two funds. As for the new rules of 2023, sole proprietors must register with the SFR as an employer only if they have an employment contract with employees. This is necessary for social contributions in the event of an employee’s disability or a social event in connection with motherhood.
You need to register within 30 days from the moment of signing the first contract. Otherwise, the sole proprietor faces a fine from 5,000 rubles to 10,000 rubles, depending on the delay period.
The following documents are required to apply to the fund:
- Passport and copies of individual entrepreneur pages.
- Application for registration as an individual policyholder.
- Copies of workbooks or employment contracts of hired employees.
It is necessary to apply for registration with documents directly to the territorial office of the former FSS, through the MFC or through the portal of Public Services.
After 3 working days after submitting the documents, all data will be entered into the database of policyholders. A notification about this will be sent to the email address.
The notification will also contain data:
- About the risk class of the main activity.
- About the amount of contributions.
- About the terms and details for the payment of insurance premiums.
Registration of an LLC as an employer is a necessary and mandatory procedure that allows ensuring social protection of employees of each company. Compliance with all the requirements of the law will help prevent possible problems with supervisory agencies and ensure the confidentiality of personal data of employees.
Despite the simplification of the procedure for registering an LLC as an employer, it is necessary to carefully monitor the receipt of registration documents from the SFR. It is also important to get the registration number in time. In the future, timely submission of reports on social benefits depends on this. Missing the reporting deadline threatens the company with a fine and possible problems with regulatory authorities.
If there are problems with registration as an employer and other difficulties, it is necessary to seek qualified legal assistance. VALEN specialists will help businesses solve all issues efficiently and on time in order to avoid problems with supervisory authorities.