Why it is necessary to register establishment with EPF and ESIC?

 Why it is necessary to register Establishment with EPF and ESIC?

EPF - An Act to Provide for the institution of provident funds, Pension Fund and deposit- linked insurance fund for employees in factories and other establishments.

ESIC - An Act to provide for certain benefits to employees in case of sickness, maternity and ‘employment injury’ and to make provision for certain other matters in relation thereto.

BENEFITS OF REGISTERING UNDER EPF SCHEME:

1. Accumulation plus interest upon retirement, resignation, death.

2. Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.

3. An amount of deposit in provident fund is eligible for tax exemption under Section 80C of Income Tax Act,1961.

BENEFITS OF REGISTERING UNDER ESIC SCHEME:

1. Full medical care is provided to an Insured person and his family members from the day he enters insurable employment.

2. Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable.

3. Maternity Benefit for confinement/pregnancy is payable for Twenty Six weeks.

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. Funeral expenses and Old age care medical expenses.

6. Expenses in case of disability of the employee.

Note - 

• Registration for EPFO & ESIC for NEW Public & Private Limited Companies and One Person Company has been stopped on Shram Suvidha Portal from 15.02.2020. 
• Registration is only available through MCA portal (www.mca.qov.in through Spice+ and AGILE-PRO e-forms) only at the time of incorporation. 
• However, the above new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts.

Documents Required For Common Registration of PF & ESIC

1. Copy of registration certificate or licenses in name of company.

2. PAN Card of the Business Entity as well as all the Employees working under the entity.

3. Number of Employees and their details

4. Primary Business Type of entity.

5. A Specimen of Signature.

6. Digital Signature.

7. Scanned copy of cancelled Cheque

8. Proof of Address of business entity.

9. Setup Proof

10. Licence Proof

11. Lease deed if Hired/Rented/leased

Note: No physical documents are to be submitted to EPFO and ESIC office for registration and also no physical visit is required. All the documents are to be uploaded online only at the time of filling application for registration.