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ESI & PF Registration

Start your Private Limited Company (Pvt Ltd) Registration process online at the Reasonable Price.

₹ 9663 /-

excl of GST  

What is ESI & PF?

Employees' State Insurance (ESI Act 1948) and Provident Fund (PF Act 1952) are social security plans in India that attempt to protect employees' financial well-being.

ESI is a health insurance plan that offers employees and their families with medical and cash benefits, as well as financial aid for sickness, maternity, and disability. On the other hand, PF is a retirement savings plan that is mandatory for businesses with a specific number of employees.

It comprises contributions from both employers and employees, which accumulate as a provident fund from which employees can take upon retirement or during particular life events.

Both ESI and PF are essential components of the employee benefits landscape, encouraging financial security and well-being throughout a person's professional career.

Benefits of ESI and PF Registration in India

In India, registering with the Employees' State Insurance (ESI) and Provident Fund (PF) provides several benefits to both companies and employees.
ESI provides comprehensive health and social security benefits, such as medical treatment, maternity benefits, and disability support, promoting employee well-being. PF offers long-term financial security by promoting employee contributions and creating a steady retirement fund.

Compliance with ESI and PF requirements improves firms' credibility and attracts talented personnel, all of which contribute to a healthy work environment. Furthermore, both programs contribute to social welfare and economic stability by providing a safety net for employees in the event of unanticipated occurrences.

Overall, ESI and PF registration not only satisfies legal responsibilities but also supports the overall welfare of the workforce and the nation's economic stability.

Documents Required for ESI & PF Registration

For ESI

Certificate of Registration (RC):
According to the ESI Act, all employers must register this document.
Articles of Association (AOA) and Memorandum of Association (MOA):
These documents are required for companies
List of Owners, Directors, and Partners:
Names and addresses of directors, partners, or the proprietor.
PAN Card of the Business Entity:
The business entity's permanent account number.
PAN Cards and Address Proof for Directors/Partners/Proprietors:
All directors, partners, or the proprietor must provide a copy of their PAN cards as well as proof of their addresses.

Bank Statement:
A corporate entity's canceled cheque or bank statement.
Employee Information:
Employee list including facts such as name, address, salary, and so on.
Photographs:
Passport-sized pictures of the staff members and the employer.
Registration Certificate (RC) for Shops and Establishments:
For non-factory entities.
Power of Attorney (if applicable):
If the registration is done by an authorized representative.

For PF

Business Entity PAN Card:
The business entity's permanent account number.
Memorandum of Association (MOA) and Articles of Association (AOA):
For businesses
Partnership Agreement:
For partnerships.
Registration Certificate (RC):
For all entities.
List of Owners, Directors, and Partners:
Names and addresses of directors, partners, or the proprietor.
PAN Cards and Address Proof for Directors/Partners/Proprietors:
All directors, partners, or the proprietor must provide a copy of their PAN cards as well as proof of their addresses.
Canceled Cheque or Bank Statement:
A corporate entity's cancelled check or bank statement.
Proof of Business Address:
The lease agreement or ownership documentation for the business premises.
Employee Information:
Employees names, salaries, dates of employment, and so on are listed.
Specimen Signature:
Signatures of authorized signatories
Power of Attorney (if applicable):
If the registration is done by an authorized representative.

Eligible Criteria for ESI Registration

Minimum number of employees:
The general criteria for ESI registration is that an establishment must employ ten or more people. In other areas, however, ESI is only applicable if there are more than 20 employees.

Salary Requirements:
Employees earning up to $21,000 a month are eligible for ESI benefits. This means that employees earning a gross income of $21,000 or less are covered by the ESI system.
Establishment Registered with EPFO:
The establishment that wants to be registered for ESI must also be registered with the Employees' Provident Fund Organization (EPFO). This dual registration ensures that both the ESI and EPF schemes are followed.
Contribution Rates:
Employees' contributions to the ESI plan are calculated based on their gross wage. The overall contribution is 6.5%, which is split equally between the company and the employee:
Employer contribution: 4.75%
Employee contribution: 1.75 percent

Industrial Units Must Have Coverage:
In industrial units where there is a higher risk of work-related injuries or health difficulties, all employees earning less than $21,000 per month are required to participate in the ESI system. This is a preventive strategy to ensure that workers have access to medical and financial compensation in the event of an occupational crisis.
Comprehensive Health and Social Security:
ESI covers a wide range of health and social security benefits, such as medical treatment, sickness benefits, maternity benefits, disability benefits, and dependent benefits. The scheme strives to protect the well-being of employees and their families at times of illness, injury, or other unforeseen circumstances.
Legal Compliance:
The legal requirements pertaining to ESI registration, contribution, and reporting must be followed by employers. Penalties may apply if you do not register or contribute to the ESI plan in accordance with the criteria.

Eligible Criteria for PF Registration

The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 governs the eligibility conditions for Provident Fund (PF) registration in India. Here are the main eligibility conditions for PF in India:

For Employers:

1. Minimum number of employees:
PF registration is required for all firms or organizations with 20 or more employees. If a company has 20 or more employees at any given time, it must register with the Employees' Provident Fund Organization (EPFO).

2. Notification from the Central Government to Smaller Businesses:
Even if a company or organization employs fewer than 20 people, it may be obliged to register for PF if indicated by a central government announcement. This provision permits regulatory flexibility based on economic conditions and the welfare of the employees.

For Employees:

1. Compulsory Membership for Lower-Income Employees:
Employees who earn a base wage and a dearness allowance of up to 15,000 per month must join the Provident Fund. These employees are liable to statutory PF contributions, and the employer is also required to make matching contributions

2. Voluntary Membership for High-Income Employees:
Employees who earn more than $15,000 per month in basic salary and dearness allowance at the time of hire are exempt from making mandatory PF contributions. They may, however,voluntarily join the Provident Fund with the permission of the employer and the Assistant Provident Fund Commissioner.

What is UAN number?

The Universal Account Number (UAN) is a unique identifying number provided to each employee in India who is covered by the Employees' Provident Fund (EPF). It acts as a single point of contact for multiple Member Identification Numbers (Member IDs) assigned to an individual by several companies.

The UAN is a unique identifying number provided to each employee who contributes to the EPF. It remains stable throughout a person's career, regardless of job changes.

UAN improves portability by allowing employees to link several Member IDs (PF account numbers) from different employers to a single UAN. This allows for the smooth transfer of PF accumulations when a person moves jobs.

Employees can easily access numerous services linked to their PF accounts through UAN, such as checking account balances, tracking EPF contributions, and viewing statements online.

How Many Times Can You Withdraw from the PF?

Frequency of PF Withdrawal:
1. Once every two months:
The Employees' Provident Funds Scheme allows you to withdraw from your PF account once every two months.
2. In Special Cases:
Exceptions can be given for special circumstances such as medical emergency, home loan repayments, or unemployment after a continuous period of two months.

Common PF Withdrawal Forms:
1. Form 19 - Final PF Settlement:
When an employee leaves their employment permanently. It contains the employee's part, the employer's share, and any accrued interest.
2. Form 10C - Pension Withdrawal Benefit:

If the service duration is less than 10 years but more than 6 months, the pension amount can be claimed.
3. Form 31 - Partial Withdrawal:
Used for advances such as marriage, education, home acquisition, or medical care.
4. Form 14 - Financing Insurance Policy:
If you want to use your PF funds to pay for an insurance policy.
5. Form 13 - PF Transfer:
To transfer the PF amount from one employer to another in the event of a job change.

Filings, Compliance and Closure for ESI

Filings:
  • Employers must file ESI contributions on a monthly basis.
  • Employer and employee contributions are included in the contribution.
  • Create a monthly ESI challan using the ESIC portal.
  • Pay the contribution by the deadline.
Compliance:
  • Ensure that all qualified employees (those earning less than a certain wage limit) are covered.
  • Confirm if the establishment is covered by the ESI Act.
  • Keep accurate records of attendance, wages, and contributions.
Closure:
  • To close an ESI establishment, you must: Inform the Regional Office in writing of the closure.
  • Submit a closure application together with the necessary documentation.
  • Before closing, settle all outstanding donations.

Filings, Compliance and Closure for PF

Filings:
  • Submit PF returns on a monthly basis using the EPFO (Employees' Provident Fund Organization) portal.
  • Employer and employee payments must be paid before the due date.
Compliance:
  • Ensure that all eligible employees (those earning less than a certain wage limit) are enrolled.
  • Make timely deductions and deposits of both employee and employer contribution.
  • Keep track of donations, withdrawals, and interest accruals.
Closure:
  • You may need to settle any outstanding dues before closing a PF account.
  • Submit a request for closure through the employer's portal.
  • Coordinate the closure process with the appropriate EPFO office.

Why SHR for Your ESI and PF Registration?

Expertise:
Benefit from our expert team's help to ensure a smooth ESI and PF registration procedure for your business.

Personalized Support:
During the registration process, receive tailored support that addresses your individual needs.
Document Security:
Trust SHR to protect your important registration documents with strong security procedures.
Financial Well-Being:
We emphasize your financial interests and provide cost-effective solutions that meet regulatory criteria.
Time-Efficient Process:
Choose SHR for a quick and easy ESI and PF registration, saving you time and assuring regulatory compliance.

Compliance for Private Limited Company

1. Board Meetings and Annual General Meetings:
As part of their compliance requirements, private limited firms must hold board meetings and an annual general meeting (AGM). There must be a record of these meetings' minutes.
2. Certificates of Compliance:
These documents attest to an organization's compliance with a number of legal criteria and may be imposed of companies.
3. Modifications to the Company Structure:
Regulatory organizations should be notified of any modifications to the company's structure, including changes to the registered office address, share capital, or directors.
4. Event-Based Filings:
When a significant event occurs, like a name change or a modification to the articles of association, a corporation may be required to file an event-based report.

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