PF & ESIC

ESI and PF are social security schemes by the Indian government. ESI provides health insurance and PF provides retirement benefits to employees.

Who Can Apply?

Any person or organization that hires employees for its operations in India needs to register for ESI and PF schemes if they meet the applicability criteria:

The following can apply for ESI and PF registration in India:

• Individual proprietorships and partnership firms that employ 10 or more employees.
• Companies registered under Companies Act 2013 that employs 20 or more employees.
• Factories employing 10 or more workers and using power. Also 20 or more workers without using power.
• Shops, hotels, restaurants, cinemas including preview theatres, road motor transport undertakings and newspaper establishments employing 20 or more persons.
• Private educational institutions employing 20 or more persons.
• Medical institutions with inpatient beds employing 20 or more persons.

Additionally, non-seasonal factories employing even a single employee need to register under PF Act.

Once covered, these establishments need to register within 15 days and cover their eligible employees under ESI & PF schemes. Foreign companies with operations in India also need to comply if they meet the threshold.

DOCUMENTS REQUIRED FOR ESI AND PF REGISTRATION

Here are the key documents required for ESI and PF registration in India:

• Registration Form 01 – Contains details like registration name, address, business activity, bank details etc.
• Proof of address – Copy of rental agreement, electricity bill, water bill, Sale deed, Municipality Tax receipts etc.
• Proof of incorporation – Certificate of Incorporation, GST Registration, Copy of memorandum/articles of association, partnership deed, Bye laws etc. depending upon the type of business.
• List of employees and their dependents with Form 3, 3A, and 4.
• Resolution by Board of Directors for obtaining PF & ESI registration.

Along with these, documents like owner/director identity proof, Contact details of owner and manager, rent receipts, bank statements, cancelled cheques may also be required in some cases.

Provident Fund (PF) and Employees’ State Insurance (ESIC) are mandatory schemes under Indian labor laws that provide financial and health security to employees. PF is a retirement savings scheme managed by the Employees’ Provident Fund Organization (EPFO), while ESIC offers medical and insurance benefits to employees under the Employees’ State Insurance Corporation (ESIC). Businesses with 20 or more employees must register for PF, while ESIC applies to establishments with 10 or more employees earning below a specified wage threshold.