Overview of ESI
Employee State Insurance, or ESI, is a programme that covers workers in many different economic sectors nationwide. Employee State Insurance Corporation, an independent, self-financing social security and labour welfare organisation, regulates this programme in accordance with the Indian ESI Act of 1948. The programme provides medical benefits and takes care of the workers' health insurance policies.
When is ESI Registration Required?
Any business firm that pays a total monthly wage of less than ₹15,000 to more than 10 employees is required to do ESI Registration Online. There are 20 employees in some states. According to the Act, employees who make less than ₹15,000 must contribute 1.75 percent of their wages to the ESI, and the employer will contribute 4.7 percent.
Employees are free from contributing their portion to the ESI scheme if their daily earnings are less than ₹100. The business must register for ESI within 15 days of incorporation.
How to Register for ESI Online
Employers can register for ESI in real-time without submitting hard copies of the required paperwork. Both approval and manual involvement are not necessary. The procedures that must be followed for signing up for ESI are listed below.
- Step 1: Access the ESI portal https://www.esic.nic.in/ through Internet Explorer or Mozilla Firefox
- Step 2: Under the ‘Services’, select ‘Employers Portal’ and then hit ‘Sign up’
- Step 3: In the corresponding window, enter the company details - Company name, Principal employer name, State, Regions, email id and contact number where the details have to be sent. Then click ‘Submit’
- Step 4: An email containing the login credentials will be sent to the applicant. Log in to the website again with credentials.
- Step 5: Click ‘New Employer Registration’. Select the company type from the drop-down, whether Factory, Shop/establishment
- Step 6: Fill in all the required fields like Address of the unit, Name of the town or taluk, contact details of the unit, whether the establishment is owned or hired and other mandatory information marked with asterisk*
- Step 7: Enter the Nature of the business, PAN and from the drop-down choose the employer type, enter the date of incorporation, business license number and date
- Step 8: Once all the fields are completed, click ‘Next’
- Step 9: In the following window displayed, select from the drop-down the ‘Constitution of Ownership’ whether Private Limited, Partnership, Cooperative Society, Proprietorship, etc.
- Step 10: Click ‘Save’ when all the details are entered
- Step 11: The next step would be to enter the details of the employees concerning their gender, and employment type (hired through contract or permanent). Click ‘Save’
- Step 12: On the ‘Employee declaration form’ enter details like ‘Total wages paid’. If IP (Insured Person) is already registered, then click ‘Yes’ or else, click ‘No’. Hit ‘Continue’
- Step 13: Next, the Insured Person’s (IP) particulars screen will be displayed. Enter the name of the IP, Name of the IP’s father, address, DOB, gender, marital status etc.
- Step 14: Enter the permanent address, DOJ, nominee details and family details. Check the declaration
- Step 15: Enter the details and click ‘Save’
- Step 16: Once the particulars of all the 10-20 employees are completed, click ‘Close’
- Step 17: Select the ‘Branch office’, ‘Inspect Division’, etc
- Step 18: Finally, accept the declaration and hit ‘Submit’
- Step 19: ‘Payment of Advance Contribution’ would be displayed. Click on the link, ‘Pay Initial Contribution’, enter the amount to be paid and press ‘Submit’. On the payment page, enter the bank’s debit/credit card details
- Step 20: When the payment is successful, a system-generated registration letter (C-11) along with the credentials for login (user id and password) will be sent through email
Documents Required for Registering Under the ESI Scheme
- Registration certificate obtained under the Shops and Establishment Act, or Factories Act.
- Based upon the type of entity, a MOM and Articles of Association (AoA), or a partnership deed or Trust deed,
- If it is a factory, then the certificate of registration and commencement of production
- Number of employees and their monthly compensation details
- Details of directors, partners and shareholders of the company
- Copy of PAN card
- Address proof of the firm
- Bank statements of the organisation with evidence of commencement of operation
Why Vakilsearch?
Vakilsearch can help any organisation comply with the ESI scheme. Our expert team will contact you and get the required information to register in an ESI scheme. Our support team will check your queries and get back to you promptly. Vakilsearch’s professional legal experts will explain the benefits of an ESI scheme, which will help you make an informed decision. Feel free to contact Vakilsearch anytime and get started with your ESI registration.
FAQ's on ESI Registration Procedure Online