PF/ESI Registration

Introduction

Welcome to CorpIQ's comprehensive guide to ESI and PF registration. Employee State Insurance (ESI) and Provident Fund (PF) are pivotal social security schemes in India designed to safeguard the interests of workers in contingencies such as sickness, maternity, old age, and employment injury. Ensuring timely registration not only benefits employees but also positions companies as responsible and compliant entities.

There are various schemes and laws which are introduced in India for factories and other business organizations. Out of all such schemes EPF and ESIC registrations are the most important ones. In both schemes, one thing is common, a predefined percentage is deducted from an employee's salary, and the proportionate amount is added by the employer. This aggregated amount is deposited to the account of the concerned employee. In this article, we will know about these two schemes and matters related thereto.

WHY CHOOSE CORPIQ SERVICES?

• Hassle-Free Registration: We streamline the complex process, ensuring smooth and timely registrations.

• Expert Guidance: Our seasoned professionals stay updated with laws and amendments, offering clients expert advice.

• Transparent Pricing: No hidden fees. You pay for what you see and get, nothing extra.

• Continuous Support: Our CorpIQ team is available for post-registration queries and support.

 

BENEFITS OF ESI/PF REGISTRATION

• Employee Benefits: Provides financial support during illness, maternity, and retirement.

• Legal Compliance: Staying updated with ESI/PF registration avoids potential legal repercussions.

• Enhanced Credibility: Companies showcasing compliance attract higher trust and goodwill from stakeholders.

 

REGISTRATION UNDER THE EMPLOYEES PROVIDENT FUND OR PF REGISTRATION

Employees Provident Fund (EPF) is a scheme introduced under the Employees Provident Fund and Miscellaneous Act, 1952. It is regulated by the Employees Provident Fund Organization (EPFO). EPFO works under the Jurisdiction of the Ministry of Labour and Employment.

 

ELIGIBILITY CRITERIA FOR REGISTRATION UNDER PROVIDENT FUND

For employers or establishment

• Any factory or organization which employs 20 or more employees is required to register itself under the Employees Provident Fund scheme.
• Other establishments may register themselves voluntarily.

For employees

• The contributions are payable on a maximum wage ceiling of Rs. 15000/-
• To pay contribution on higher wages, a joint request from Employee and employer is required [Para 26(6) of EPF Scheme]. In such case the employer has to pay administrative charges on the higher wages (wages above 15000/).

• For an International Worker, a wage ceiling of 15000/- is not applicable.

 

FEATURES OF EPF SCHEME

• Amount deposited in EPF can be withdrawn either post-retirement or for any special purpose such as marriage, education, medical emergency etc.
• If somebody withdraws PF amount either on completion of 5 years of continuance employment or on its maturity in such a situation such amount shall be exempt from Income tax.
• If an employee has left the organization and remains unemployed for a continuous period of 1 month then in such a situation, he may withdraw 75 percent of the balance in the EPF account. Balance of 25 percent can be withdrawn post continuous employment period of 60 days.
• In case of the death of an employee the nominee will be entitled to PF amount and interest accumulated thereon.

 

DOCUMENTS REQUIRED FOR EPF REGISTRATION

• Copy of PAN card of establishment
• Address of the business along with a
• ddress proof
• Factory license/start-up registration certificate/ MSME registration certificate
• Other certificates such as GST registration, Shops and Establishment registration, or any other certificate granted by government authority
• Ownership details
• Details of the person to be contacted such as Mail ID, Mobile number, copy of PAN,Address of the person
• Details of Primary and other owners such as PAN number, address and cotac details
• Details of employees covered under EPF Act
• Details of activities such as NIC code and nature of work
• Address proof such as copy of Bank statement or passbook/ utility bills etc

 

HOW TO REGISTER FOR EPF

• At CorpIQ, we can help you with obtaining registration under EPF/ ESIC Act
• Adding, deleting or modifying records of employees on regular basis
• Computation of contribution obligation under ESIC or EPF and making sure that they are deposited within time limit.
• Filing returns under EPF and ESIC

 

REGISTRATION UNDER THE EMPLOYEE STATE INSURANCE CORPORATION OR ESIC REGISTRATION

ESI or Employee State Insurance is managed by an autonomous body Employee State Insurance Corporation (ESIC). ESIC is created under the Ministry of Labour and Employment, Government of India.

ESI REGISTRATION PROCESS

The following steps are involved in online ESIC registration: -

• Sign in to the ESIC portal using your entity credentials
• A confirmation mail will be received at your registered mail ID containing the username and password details for registering an as employer or employee under the ESIC scheme
• After login to the ESIC portal go to the new user registration option fill in the required registration form-1 and submit it
• After registration is done, the user is required to pay advance contribution obligation for 6 months.
• Once payment of 6 months advance obligation is made system will generate 17 digit registration number in the registration letter. Such letter is a conclusive proof of registration of the employer.

 

DOCUMENTS REQUIRED FOR ESIC REGISTRATION

• Registration certificate obtained under Factories Act/ Shops and establishment Act/ GST Act
• Certificate of incorporation of entity such as COI in case of company or partnership deed
• MOA and AOA or other principle charter of the entity
• Address proofs such as utility bills/ rent agreement
• List of employees
• PAN card of the establishment and employees
• List of directors or partners
• Cancelled cheque copy
• Register of attendance of employees

 

FEATURES OF ESIC SCHEME

• It includes all medical care facilities of the insured person as well as dependent family members thereof.
• It includes medical coverage for a certain specific illness which includes cash benefits.
• It includes a special benefit for women employees regarding maternity leave or medical issue during pregnancy.
• All factories are liable to register their employees under ESI. All government establishments and shops or offices in which 20 persons or more persons are employed are also liable for registration.
• There are certain exemptions to it such as seasonal factories activities like cotton ginning, jute pressing, or factories engaging workers for not more than seven months a year are also exempted from registration.