Every company has to offer its employees an EPF or Employees Provident Fund which is akin to a retirement fund. EPF comes under the purview of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration is mandatory for organizations that have more than 20 employees.

Eligibility for EPF Registration for Indian employers

 

• A factory that has 20 or more people.
• An establishment that employs more than 20 persons. Here, the Central Government defines the class of such firms.
• An establishment that has less than 20 workers and has been notified of compulsory registration for not less than 2 months.
• The employer and the employees of an establishment mutually agree to apply for PF to the Central PF Commissioner. A notice has to be sent to the Official Gazette from the date of the agreement.
• An establishment can also opt for voluntary registration if the employee count is less than 20. Every employee is eligible for PF right from the beginning of his employment. The responsibility of PF contribution and deduction is of the employer’s.

 

Benefits of PF Registration Online

• Pension  Coverage

Besides the contribution of the employee to EPF, the employer adds an equal amount which is inclusive of Employee Pension Scheme (EPS). Therefore, EPF saves you a robust pension.

• Cover of Risk

In case of instances like illness, demise or retirement, Provident Fund helps the dependents of the employee by covering the financial risks they face in such situations.

• Single Account

The PF account can be transferred while switching employments. It can be carried forward instead of being closed down. This uniformity ensures that the rate of return is compounded over the years.

• Emergency Fund

Emergencies are bound to happen at any point of time in life. EPF amount can be of great help during mishaps, illnesses, weddings and educational expenses.

• Employee Deposit Linked Insurance Scheme

Any person who has PF account is eligible for this insurance scheme that requires only 0.5 % of the salary deduction as premium.

• Extended Goals                                                                                                                                                                                                
• The PF account can be extremely helpful for long-term goals like buying a property or setting up a fund for children.

 

When ESI registration is required?

 

ESI registration is mandatory once a company or any other entity employs 10 or more low-earning employees. According to the Act, any employee earning less than Rs. 15,000 per month needs to contribute 1.75% of his/her pay towards the ESI, while 4.75% will be contributed towards his/her ESI by the company. The ESI scheme provides tremendous benefits to the employees, and has a large network of dispensaries, and hospitals throughout the country for facilitating fast and efficient medical care.

All establishments/units/factories with over 10 employees (earning less than Rs. 15,000 per month) are required to mandatorily apply for the ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.

1. 1. A registration certificate or a license obtained under Shops and Establishment Act or Factories Act;
   2. Certificate of registration (Memorandum and Articles of Association in case of a private limited company, partnership deed for LLPs, etc);
   3. Certificate of registration for all entities and commencement of production for factories;
   4. A list of employees with their monthly compensation, in detail;
   5. A list of directors, partners and shareholders of the company;
   6. The PAN card of the business and address proof of the establishment/firm;
   7. Bank statements of the organization, with evidence of commencement of operation.

 

ESI Registration Procedure: Steps Involved

 

1. Once the documents are ready, the company can apply for registration by submitting the Employer’s Registration Form (Form-1).
2. A PDF format of the form is available on the website. Fill in the form and submit it to ESIC for registration on the official website.
3. Once verified, a registration number, a 17-digit unique identity will be provided to the organization. The ESI filings can be done once you receive the 17-digit number.
4. Employees registered under the scheme get an ESI card after submitting a form with photographs and details of family members.

Although the registration is permanent, and the number is valid for the lifetime of the company, any new changes, such as employee additions, need to be intimated to the ESI.