PF/ESI Registration

PF/ESI Registration

PF (Provident Fund) and ESI (Employee State Insurance) are important registrations in India that provide social security benefits to employees. PF registration is governed by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, while ESI registration falls under the Employees’ State Insurance Act, 1948.

PF Registration

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 for 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.

ESI Registration

Eligible For ESI Application:

Any company or enterprise that is not seasonal has more than 20 employees and pays a basic income of Rs. 21,000/- is obligated to register for ESI with the ESIC 15 days from the time it becomes applicable.

However, if you are a small business and do not have employees, you can register yourself voluntarily.

Documents Required for ESI Registration:

  1. Bank statement copy
  2. A copy of each license issued in the establishment’s name.
  3. A canceled check
  4. A copy of the company’s financial statement
  5. A duplicate of the certificate of company incorporation or registration
  6. A list of each person who the contractor or the company directly employs.
  7. A copy of the lease or rent contract.
  8. A copy of each director or partner’s PAN and voter ID
  9. A copy of the board’s decision
  10. A power bill copy

Along with the documents mentioned previously, the following knowledge is also necessary.

If an employee is already ESIC-registered:
  • Employee Insurance Information
  • appointment date
If the employee isn’t ESIC registered:
  • Name of Employee 
  • Address and Birthdate 
  • Employee’s father/husband’s name
  • Information about the nominees (name, mobile no, address, email id, etc.)
  • Bank Details (bank name, account number, IFSC code, Branch name, etc.)
  • Information about the former employer
  • Employer Insurance No.
  • Employer ID number
  • Name of the company
  • Employer’s address and phone number
ESI Application Requirement

Section 2(12) of the Employees’ State Insurance Act states that all factories employing ten or more workers must get obligatory registration under the ESI act. To put it another way, the ESI program applies to establishments with ten or more staff workers.

In India, however, the number of employees required for an organization to be eligible for registration under the ESI plan ranges from 10 to 20, depending on the location. Additionally, such firms and enterprises are required to register themselves with the ESI within the first 15 days after the date on which the ESI Scheme would begin to apply to them.

In light of this, the following types of businesses, in addition to factories, qualify for coverage under the ESI plan since they employ ten people or more:

  • Shops and Establishment
  • Hotels and restaurants are not involved in any manufacturing activity; instead, they are primarily in the business of selling their products.
  • Theatres, cinemas, and preview theatres all rolled into one
  • Infrastructure for vehicular and automobile travel on roads
  • Establishments that publish newspapers (which are not considered factories according to section 2(12) of the ESI act)
  • Educational establishments that are not publicly funded (those run by individuals, trustees, societies, or other organizations) & Hospitals and Other Medical Facilities (including Corporate, Joint Sector, trust registration, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs)

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