EPF and ESIC Registration

Out of all the schemes and laws, the EPF and ESIC are the most sought after. In both the schemes a predefined percentage is deducted from employee’s salary and proportionate amount is added to it by employer and then aggregate amount is deposited to the account of concerned employee..

VJM & Associates LLP helps you with the process of PF registration and ESI registration and in the management of EPF and ESIC accounts. We also help with timely deposits of the funds in the EPF and ESIC accounts and keeping it up to date with the recent amendments in the law regulating it.

Know More about EPF- Employees’ Provident Fund

The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labour and Employment.

EPF is commonly known as PF in India and is a scheme through which a portion of employee’s income is set aside for use during any emergency or post-retirement. The employer and employees deposit a certain percentage towards PF every month. The percentage of money to be deducted from the employee’s salary and percentage to be contributed by the employer is predefined under EPF Act.

Eligibility Criteria for Registration under Provident Fund

Any organisation or factory with at least 20 employees needs to get themselves registered under EPF Scheme.
Establishment with less than 20 employees may get themselves voluntarily registered.
Liability to deduct and deposit EPF arises for all employees with wages of Less than INR 15,000 per month,
Employees of an organization, which are already registered under EPF Scheme, are directly eligible for getting their Provident Fund account opened from date of their joining.

Benefits of EPF scheme

There are many benefits of registering to the EPF scheme, some of these are:-

Amount deposited in EPF Account is a savings that can be withdrawn at any time for any purpose such as Education, Marriage, Medical emergency or same can be obtained post retirement.
If you withdraw the PF amount and interest on its maturity or after 5 years of completion of continuous employment, then its entire amount will be exempted from any Income tax liability.
If the employee leaves the organisation then he/she can withdraw 75% of the balance lying in EPF account on completion of one month of continuous unemployment. Balance 25%can be withdrawn post continuous employment period of 60 days.
Unlike before, EPF accounts are created and maintained completely online and The employees can have access to their EPF funds anywhere in the world with universal account number.
In case of death of the employee the nominee will get the PF amount and interest accumulated over the period.

Documents and Information required for the registration under EPF scheme

Following is the list of document required for registration under EPF scheme:-

1. Establishment Details:

Copy of PAN Card
Address of the business
In case of factory, copy of factory licence
In case of start-up, startup registration certificate
In case of MSME, copy of MSME Registration certificate
Ownership Details

2. E-contact details

Email Id
Mobile Number
Details of Contact Person:
Copy of PAN
Designation and date of joining the establishment
Address and contact details

3. Details of Primary and other owners

Copy of PAN
Designation and date of joining the establishment
Address and contact details

4. Details of any other certificate. E.g. GST Registration, Shops and Establishment registration or any other certificate granted by government authority.

5. Details of employees covered under EPF Act

6. Details of Branches and divisions

7. Details of activities

NIC Code of activity (Not Mandatory)
Nature of work

8. Proof of Address:

Copy of Bank passbook/statement
Copy of electricity connection in the name of establishment
Copy of water connection in the name of establishment
Copy of postpaid telephone bills in the name of establishment
Any licence/Number/Certificate issued by government Authority

9. Agreement between employer and employee in case of voluntary coverage

How to Register for EPF

To register with EPF scheme go to http://www.epfindia.gov.in/site_en/index.php

Register with the website by selecting “Register Establishment”.
Before registering, you will be provided with the instruction manual and read the details carefully.
For already registered users log in to the portal using your credentials- username and password. The instruction manual will appear describing the procedure followed by Digital Signature Certificate (DSC).
Click on “ I have read the instruction manual” and proceed to fill up all the details to register.
An email link and pin will be sent to your given email address and phone number, clink on the link to activate your email address and phone.
Upload the required documents, to get yourself registered.

How VJM & Associates LLP can help in EPF compliances

At VJM associates LLP, we help you with:

Obtaining registration under EPF/ESIC Act
Adding, deleting or modifying records of Employees on regular basis
Computation of ESIC and EPF liability and ensuring that the same is deposited within due date
Filing returns under EPF and ESIC.

Know More about ESIC

ESIC stands for Employee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labour and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.

VJM & Associate LLP will help you with the hassle free registration process of ESIC and in completing further compliances within time to avoid penal consequences.

Eligibility Criteria for ESIC

All organisations listed under Factories Act and Shops and Establishments Act.
Factories and establishments with 10 or more employees have to register themselves under ESI schemes.
Employees earning wages not exceeding INR 21000/- per month will be covered to check requirements of ESIC registration.

Benefits of ESIC Scheme

ESIC Scheme ensures Various benefits to registered employees and their dependents. List of benefits is as follows:

Medical benefits: Reasonable medical care, comprehensive medical care & clinical investigation for insured people and his family members.
Medical Care: Medical facility within ESI Medical institutions to insured person and his spouse
Sickness Benefits and enhanced sickness and extended sickness benefits.
Disability benefits: Payment is made to the employee as long as disability continues.
Dependent Benefits: Amount is paid to the dependents of the Insured person who dies as a result of employment injury.
Maternity benefits: Paid maternity leaves are given for 26 weeks. 6 Weeks are given in case of miscarriage.
Funeral benefits: One time payment made for the funeral of an insured person.
Unemployment Allowance under Rajiv Gandhi Sharmik Kalyan Yojna’(RGSKY)
Vocational Rehabilitation Allowance

Documents required for the registration

Following is the list of document required for registration under ESIC scheme:-

Details of Establishment:

Copy of PAN
Complete postal address of the factory/Establishment alongwith address proof.
Details of police station
Nature of ownership of premises, i.e., owned or rented

2. Details of all bank accounts

3. Nature of business

4. Registration details and certificate obtained either under Factories Act and Shops and Establishment Act.

5. Date of commencement of factory

6. Constitution of business

7. Name, age, Designation, father’s name and address proof of all directors/owner of the establishment

8. Details of number of employees

Number of employees covered under scheme
Bifurcation of employees in Male, female, transgender
Bifurcation of employees drawing wages of less than INR 21000 per month in Male, female, transgender
Date when number of employees reached 10 or 20

9. Details of employees

Name
Father’s name
Address
Date of Birth
Gender
Marital Status
Permanent Address
Date of Joining
Nominee details
Family Details
Email id and mobile number
Details of bank account
Copy of PAN And aadhar card
A cancelled cheque of the Bank Account of the Company

How do we help

At VJM & associates LLP our skilled professionals regularly watch for any amendments in the ESIC and EPF acts and accordingly guide our client base that necessary course of action is required to be taken. Our skilled professionals help you with the following:-

1. We help in step by step assistance in the registration process of EPF and ESIC.
2. We notify recent amendments and update the EPF and ESIC fund promptly.
3. We provide professional help in solving your query.
4. We manage the work required after registration.
5. We assist in filing ESI and EPF returns in time.
6. Timely update the PF and ESIC accounts within due dates. Delay in payment of EPF or ESIC contribution may result in interest and penalty.

How VJM & Associates LLP can help in ESIC compliances

At VJM associates LLP, we help you with:

Obtaining registration under EPF/ESIC Act
Adding, deleting or modifying records of Employees on regular basis
Computation of ESIC and EPF liability and ensuring that the same is deposited within due date
Filing returns under EPF and ESIC.

What people say about us

By taking care of our Internal control policies and procedures, VJM Team have made sure that experience is hassle free.

sachin JainCFO, mahle filter system (i) pvt limited

Very professional approach from VJM Team, they got associated with us late in the financial year but were able to conduct an in depth audit and highlight the areas to be addressed within a short span of time. What gives us confidence is that they are available for consultation on any financial matter and are quick to find and implement the resolution

Shobit BhatnagarGradeup.co

VJM team is a thoroughly professional chartered accountants equipped with all resources and with deep understanding of GST and other contemporary arenas of corporate consultancy. Have interacted with them for various tax and corporate law related matters and found the interaction quite useful.

Pawan LadhaFreecharge

FAQs on EPF and ESIC Registration

Q1. How can I apply online for ESI?

To apply for the ESI, you need to check the eligibility criterion and then visit the http://www.esic.nic.in/ and fill Form No-1.

Q2. How can I get a PF amount in ESI?

You cannot get PF amount in the ESI account because PF is a monetary fund to help employees in unemployment period and retirement; whereas ESI is meant for meeting social securities namely health and insurance for the family and employees.

EPF is as good as a savings account maintained for the employees and he can get details of the amount deposited to the EPF account over the period of time and interest accrued.

However, ESIC is equivalent to insurance premium paid for medical benefits. Amount paid to ESIC account is not refundable to the employee.

Q3 . What is ESI registration?

ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer. For this purpose, registration with the government is required which is called ESI registration.

Q4 . How can I apply PF registration online?

Log in to your registered account on the EPF website and click on the downloads which are at the top of your account. A dropdown list will appear and choose EPF certificate, your PDF version will be generated.

Q5. Who are the contributors in PF and ESIC?

The contributors in PF and ESIC are the employer and employee in a predefined ratio.

Q6. What percent of income or salary is deducted in EPF and ESIC?

EPF:-The employer and employee both contribute 12% each of the employee’s salary (basic + dearness allowance) to the EPF. However, in case an establishment opt for EPF registration voluntarily then 12% reduces to 10%.

ESIC:-Currently, the employee’s contribution rate (w.e.f. 01.07. 2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs. 137/- are exempted from payment of contribution.

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