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Question 06.02.2018

Can you tell, please, is there an obligation after accreditation of a branch/representative office:

1. To open a bank account.

2. To register with the tax service/Pension Fund/Social Security Fund?

As far as I remember, a branch/representative office can only be registered with a bank account opened and a labour contract.

The client wants neither opening a bank account nor signing a labour contract by now, because the representative office became not needed one month before registration. I do not understand, if the client does not open a bank account and, hence, does not obtain notifications from Pension Fund and Social Security Fund, does it make him free of reporting to those funds? How to submit those reports?

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Good afternoon!

Without a bank account and registration in the funds, the branch / representative office will not be able to function properly. In the Pension Fund (hereinafter — PF) the information about a labour contract and a bank account is not required, now you may just submit a copy of the extract from the registry of branches and representative offices to this fund (form 15VFP). However, a labour contract and a reference from the bank on having a bank account opened are needed in the Social Security Fund (hereinafter — SSF).

However, if neither one nor the other is present — it is not necessary to submit reports to the SSF, no sanctions are assigned for this. Given the order of the Ministry of Labour No. 202-n dated 29.04.2016, the two conditions must be met for registration with the FSS: having a bank account opened and making payments in favor of individuals (in fact, a labour contract provided for the head of the branch / representative office is to be prepared for this purpose). As soon as you have both the bank account and the labour contract, you must submit documents for registration to the SSF, and if you bring them 30 calendar days after the opening of the bank account, you will also need to provide a reference from the bank confirming that there was no transaction made by then — in other words, to show the SSF that no payments have been made, otherwise you will have to pay fines.