Compulsory Registration for EPF/ESI for a New Company is a mandatory requirement in India for companies employing 20 or more workers. It involves registering for the Employees Provident Fund (EPF) and Employees State Insurance (ESI) schemes, which provide social security benefits such as a pension, health insurance, and maternity benefits to employees.
Overview:
Starting a new company in India can be an exciting and challenging experience. It involves a lot of planning, preparation, and compliance with various government regulations. One such important compliance requirement is the compulsory ESI/EPF Registration for new company
With effect from February 23, 2020, mandatory EPF/ESI registration for companies/organizations is required at the time of incorporation when a company has 20 or more employees. A company that reaches the minimum barrier of 20 employees must register within one month of reaching that level. Failure to comply with this requirement can result in legal penalties and fines. The registration process helps to ensure legal compliance, improve employee benefits, reduce tax liability, and improve record keeping. By registering for EPF/ESI, new companies can take a step towards ensuring the financial security and well-being of their employees.
The Importance of Compulsory Registration for EPF/ESI for New Company in India
- Legal Compliance: The Employees Provident Fund and Miscellaneous Provisions Act, 1952, and the Employees State Insurance Act, 1948 make it mandatory for companies employing 20 or more workers to register for EPF and ESI schemes. Failure to comply with these regulations can result in legal penalties, fines, and imprisonment.
- Employee Benefits: By registering for the EPF and ESI schemes, companies can provide their employees with a range of social security benefits such as pensions, health insurance, and maternity benefits. This can help to attract and retain quality employees and improve employee morale and satisfaction.
- Tax Benefits: Companies that are registered for EPF and ESI are eligible for tax benefits under the Income Tax Act, of 1961. This can help companies to reduce their overall tax liability and improve their financial health.
- Record Keeping: By registering for EPF and ESI, companies are required to keep detailed records of their employees’ contributions, including the amounts contributed, the frequency of contributions, and the manner in which contributions are made. This helps to ensure that the employees’ contributions are accurately recorded and that they can access their benefits when they are needed.
EPF Schemes
The Employees’ Provident Funds Act of 1952 establishes a provident fund structure in which an employee makes a particular contribution to the scheme and the corporation makes an equal contribution. Employees receive a sum of money in the form of interest on contributions made upon resignation or retirement.
ESI Programme
Employees’ State Insurance Scheme (ESI) Registration is a social insurance scheme established by the Employees’ State Insurance Act of 1948. This program intends to protect the employees/interests workers in unanticipated conditions/events.
Documents Required for EPF/ESI for a New Company Registration
- Name of the new company.
- Date of Incorporation.
- Principal employer’s name,
- Scanned copy of the new company’s Permanent Account Number
- Scanned copies of the licenses in the name of the company. (Like GST, Import Export License).
- Scanned copy of cheque of company’s bank account.
- Address of the new company with address proof (with details of state and region as well as a mail address)
- List of Directors of the company
- Address proof of Director/ Proprietor / Partner of the company.
- Mobile Number of Director / Proprietor / Partner of the company.
- Email address of Director / Proprietor / Partner of the company.
- Copies of bills (sale bill and purchase bill).
- Strength of employees from the date of incorporation
- Copy of the employees’ identity evidence, such as their Aadhaar card or voter id.
FAQs
How can I register my company in PF and ESI Online?
You can register your company in PF and ESI online through the Unified Shram Suvidha Portal.
How do I get an ESIC number for a newly registered company?
After registering your company on the Shram Suvidha Portal, you will receive a unique ESIC number for your newly registered company.
Is PF filing mandatory for Pvt Ltd company?
PF (Employee Provident Fund) filing is mandatory for all companies, including private limited companies, if they employ 20 or more employees.
How many employees are required for ESI and PF registration?
ESI (Employees' State Insurance) registration is mandatory for companies that employ 10 or more employees, while PF registration is mandatory for companies that employ 20 or more employees.
Is ESI and PF mandatory for Pvt Ltd company?
ESI and PF registration is mandatory for all companies, including private limited companies, if they employ 10 or more employees and 20 or more employees, respectively.
What is the minimum number of employees for EPF registration?
The minimum number of employees for EPF registration is 20
Conclusion
To conclude, it is very important to follow the EPF/ESI schemes in every company for the employees of their organisations. The ESI and EPF schemes are important measures that have been implemented by the Government of India to ensure the financial security of its citizens. By registering for these schemes, employers and employees can be assured that they will receive the benefits they are entitled to, such as medical care, old-age pension, and other social security benefits. Therefore, registering for the ESI and EPF schemes is an important step for employers and employees alike, and should be taken into consideration if they wish to ensure their financial security and avail of the benefits offered by the Government of India
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