ESIC Registration
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 4.75% of the total monthly salary payable to the employee whereas the employer needs to contribute only 1.75% 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.
ESIC Registration
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.
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
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
PF Registration
Employees Provident Fund (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the umbrella of Employees’ Provident Fund Organisation (EPFO). PF registration is applicable for all establishment which employs 20 or more persons, subject to certain conditions and exemptions.
Applicability of PF Registration
PF registration is mandatory for all establishments with 20 or more persons. Some establishments having less than 20 employees would also be required to obtain PF registration. All employee become eligible for a PF right from the commencement of employment and the onus of deduction & payment of PF is with the employer. The 12% rate of PF contribution should be equally divided between the employee and employer. If the establishment houses less than 20 employees, the rate for PF deduction is 10%.
Documents Required or PF Registration
Based on the type of entity seeking PF registration, the list of documents required for PF registration would vary as under:
For Proprietorships
- Name of the applicant
- Pan card of proprietor
- Id proof of the proprietor like Driving license/Passport/Election Card
- Address proof of proprietor.
- Address proof for the premises.
- Complete details of the applicant with their residential address and telephone number
For Partnership Firms / LLP / Company
- Name of the partnership firm or LLP or Company
- Certificate of Registration Firms in case of Partnership firm. Incorporation Certificate in case of LLP or Company.
- Partnership deed in case of partnership firms or LLP.
- Id proof of Partners –Pan card /Election Card / Passport/Driving license in case of Partnership Firm or LLP. ID proof of Directors in case of company.
- List of all partners with telephone number and address proof of all partners in case of Partnership Firm or LLP. List of all Directors with contact details in case of Company.
Society/Trust
- In case of Society, Trust etc, Registration of the organization needs to be done with concerned authority.
- Certificate of incorporation of society/trust.
- Moa and Bye Laws of society and trust.
- Id proof of president and all members of society
- Complete details of president and all members with their complete address and telephone number.
- Pan card of society/trust
Common Documents Required for All Entities
- First sale bill.
- First purchase bill of raw material and machinery.
- GST Registration Certificate, if registered under GST.
- Name of the bankers, address of the bank.
- 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.
- Date of joining of employees, fathers name and date of birth.
- Salary and PF Statement.
- Cross cancelled cheque.
0 Comments