ESI/PF REGISTRATION

ESI Registration – PROCESS

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.

Under this scheme, the employer needs to contribute an amount of 4.00% of the total monthly salary payable to the employee whereas the employer needs to contribute only 1.00% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 100/- per day.

What are the benefits of ESIC registration?

The benefits of registering under this scheme are varied. Some of them are:

1. Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year

2. Medical Benefits to an employee and his family members

3. Maternity Benefit to the women who are pregnant (paid leaves)

4. If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee

5. Same as above in case of disability of the employee

6. Funeral expenses

7. Old age care medical expenses

Entities covered under ESIC

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

1. Shops

2. Restaurants or Hotels only engaged in sales.

3. Cinemas

4. Road Motor Transport Establishments;

5. Newspaper establishments (which is not covered under the factory act)

6. Private Educational Institutions

What are the documents required for ESIC Registration

The documents required for the registration are –

1. A registration certificate obtained either under the:

a. Factories Act

b. Shops and Establishment Act

2. Certificate of Registration in case of Company, and Partnership deed in case of a Partnership

3. Memorandum of Association and Articles of Association of the Company

4. A list of all the employees working in the Establishment

5. PAN Card of the Business Entity as well as all the Employees working under the entity

6. The compensation details of all the employees

7. A cancelled cheque of the Bank Account of the Company

8. List of Directors of the Company

9. List of the Shareholders of the Company

10. Register containing the attendance of the employees

After collecting all the above-mentioned documents the following procedure is to be followed for the registration of the ESI:

a. Form No – 1 (Employers Registration Form) is to be downloaded and filled.

b. After downloading the PDF version of the form and filling it, it has to be submitted on the website itself along with the above-mentioned documents.

What is the process after the form verification?

Step 1: After verification of the form, the government will issue a 17 digit unique number

Step 2: The employee who is registered under this scheme will provide the employer with the filled form and photographs of his own family members as a part of the process of registration and will get an ESI card after registration

Step 3: Any change in the Company or its employees will be intimated to the ESIC

How many returns are filed every year after the registration is finalised?

After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:

1. Register of Attendance of the Employees

2. Form 6 – Register

3. Register of wages

4. Register of any accidents which have happened on the premises of the business

5. Monthly returns and challans

EPF Registration Process

The Government of India will pay the employer and employee contribution to EPF account of employees for another three months from June to August 2020. The benefit is for establishments with up to 100 employees and where 90% of those employees draw a salary of less than Rs 15,000 per month. The contribution to EPF is reduced to 10% from 12% for non-government organisations.

Applicability of EPF Registration for Employers

EPF registration is mandatory for all establishments-

  • which is a factory engaged in any industry having 20 or more persons, and
  • to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.

The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable .A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.

EPF Registration Procedure

The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:

  • Establishment details:– Name of the establishment
    – Address
    – Incorporation Date
    – PAN
    – Type of establishmentIf the establishment is a factory then the following details must be provided:– Factory License Number
    – Date of License
    – Place of issue

    If the establishment is an MSME then MSME registration details to be provided.
  • eContacts: The employer must provide email id and mobile number of the authorised person.
  • Contact Person: Employers must provide details of the contact person like a manager. The details required are:– Name
    – Date of Birth
    – Gender
    – Contact details
  • Identifiers:The identifiers are the license information that the employer needs to provide.
  • Employment details:– Employee strength
    – Gender
    – Type of activities
    – Wages above limit
    – Total wages
  • Branch/Division: Branch details such as name/premise number and address.
  • Activities: The employer needs to select the type of business and the activities included from the drop down lists available.

Steps For EPF Registration for Employers

The employee needs to follow the below-mentioned steps:

Step 1- Register the organization with EPFO

Visit the website and register the organization with EPFO. In the home page of the Unified portal, there is an option called “ESTABLISHMENT REGISTRATION”.

Step 2: Read the User Manual

Click on the “ESTABLISHMENT  REGISTRATION” and you will be taken to the next page where you will get an “INSTRUCTION MANUAL”. A new user must download and read the instruction manual completely before the registration.

Step 3: Register DSC

The employers who are already registered can login with their credentials i.e. with the Universal Account Number [UAN] and password. This instruction manual will explain the process of Employer Registration which is to be followed by registration of DSC [Digital Signature Certificate] of the Employer. Getting DSC registered is a prerequisite to submitting a fresh application for ERF registration.

Step 4: Fill the Employer’s Details

Tick on “ I have read the instruction manual” completely. Click on “REGISTER BUTTON” given below. This will take you to the new page where all the employer’s details need to be filled in. The fields marked with the red star (asterisk) are mandatory to be filled in.

Step 5: Fill the details correctly

  • First Name:
  • Employer PAN
  • User Name
  • Hint Question/ Answer
  • Mobile PIN
  • Activate Email link:

Documents Required For PF Registration

Proprietor
ship Firms 		Society/Trust Partnership Firms LLP / Company Employee
Applicant’s Name. Certificate of incorporation Certificate of Registration Certificate of incorporation Name
Father’s Name
Date of joining
Pan Card MOA and Bye-Laws Partnership deed ID proof of Directors Date of birth
Mobile number
Postal address
Id proof Pan card Id proof of partners DSC of Director Name of nominee
Grade
Salary
Address proof for the premises. president & members
Address
ID Proof 		List of all partners with
Address
ID Proof 		List of all directors with
Address
ID Proof 		Designation
ID proof (Aadhaar Card/ PAN Card)
Bank A/c number with IFSC code
residential address proof MOA, AOA Voluntary application
employee details
Signature
date of agreemen

For All Other Entities

  • First sale bill.
  • First purchase bill of raw material and machinery.
  • GST CERTIFICATE if registered
  • Bankers details- name, address, branch, IFSC code
  • Record of a monthly strength of the number of employees.
  • Register of salary and wages, all vouchers, all balance sheets from day one to current date of provisional coverage.
  • Salary and PF Statement.
  • Cross canceled cheque