EPF Registration

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EPF Registration

EPF Registration

The registration under the Employees Provident Fund Organisation (EPFO) is mandatory for establishments with 20 or more employees as per the Employees Provident Funds and Miscellaneous Provisions Act, 1952. This is to ensure that the employees receive social security benefits in the form of retirement savings and other benefits. The employer and employee both contribute a percentage of the basic salary towards the EPF account, which is managed by the EPFO. The contributions are invested in various financial instruments and earn a fixed rate of interest, which is announced by the government from time to time. The EPF scheme provides a safety net for employees in their retirement years or in case of any unforeseen circumstances. Therefore, PF registration is essential to ensure that employees are provided with social security benefits and to regulate the contributions made towards the EPF account.

Documents/Details Required For EPF Registration

Pan Card of the employer

ID proof such as Aadhaar Card, Voter Card, Driving Licence, and Passport of the Authorized Signatory

Address Proof of the registered office with NOC/Rent Agreement

In case the Employer is a Company/LLP certificate of Incorporation, by laws are needed.

Partnership deed, id proof & address proof of every partner if the establishment is a partnership firm.

Details of Employees

Key points regarding the applicability of EPF online registration: -

  • EPF registration applies to establishments that employ 20 or more employees during any time in the previous year.
  • Factories engaged in any industry with 20 or more employees during any time of the year are also required to register.
  • The Central Government may issue a notice to certain establishments for compulsory registration, irrespective of their number of employees.
  • In such cases, the establishment must register immediately upon receiving the notice.
  • Registration under the EPF scheme is mandatory for all eligible establishments.
  • Failure to register may result in penalties and legal action.

Benefits of EPF Registration

There are several benefits of EPF registration for both employers and employees. Some of the key benefits are.

Benefits for Employees:

Retirement Savings:

EPF registration provides a savings platform for employees to accumulate a corpus of funds for their retirement.

Social Security:

The EPF scheme provides social security benefits to employees in the form of a pension, insurance, and other benefits.

Tax Benefits:

Contributions made towards EPF accounts are eligible for tax deductions under Section 80C of the Income Tax Act, up to a specified limit.

Withdrawal Benefits:

Employees can withdraw funds from their EPF accounts for various reasons such as marriage, medical emergencies, or to purchase a home.

Benefits for Employers:

Employee Welfare:

By registering under the EPF scheme, employers can provide a valuable employee benefit that helps attract and retain talent.


EPF registration ensures compliance with the law and helps avoid legal penalties and fines.

Tax Benefits:

Contributions made towards EPF accounts are tax-deductible for employers, up to a specified limit.

Lower Administrative Burden:

The EPF scheme is managed by the EPFO, which helps reduce the administrative burden on employers.

Eligibility criteria for EPF REGISTRATION: -

Compulsory Registration:

Organizations with 20 or more employees are mandated to register under the EPF scheme as per the guidelines of the EPFO.

Voluntary Registration:

Organizations with less than 20 employees can choose to register voluntarily for the EPF scheme.

All Establishments:

Any organization acknowledged according to the requirements of the act must register under the Employee Provident Fund scheme.

UAN (Universal Account Number)

Once an establishment is registered with the EPFO, it is required to generate a Universal Account Number (UAN) for each employee and update their KYC documentation. The UAN helps in consolidating multiple EPF accounts of an employee under a single number, making it easier for them to manage their PF contributions.

Universal Account Number (UAN) is a unique identification number that is allotted to an employee who is contributing to the Employees' Provident Fund (EPF) scheme. The UAN is a 12-digit number that remains the same throughout an employee's career and is linked to their EPF account.

To activate his UAN, an employee can visit the official website of EPFO and complete the required details such as UAN, Member Id, Aadhar Number, PAN number, etc. They must then fill in their personal details such as name, address, and contact details and validate the OTP received on their registered mobile number. Once the OTP is validated, the employee's UAN will be activated, and they can use it to claim their PF fund, transfer the PF fund online to their bank account, and more.

ESI Registration

ESI registration refers to the process of registering an employer and their employees under the Employee State Insurance (ESI) Act, 1948. It is a statutory compliance that all employers covered under the Act are required to comply with. Through ESI registration, an employer can avail of various benefits such as medical, disability, maternity, and unemployment benefits for their employees.

ESI registration is mandatory for all employers who have more than 10 employees, and the salary of each employee is less than or equal to Rs. 21,000 per month. The employer is required to contribute 4.0% of the employee's wages, and the employee is required to contribute 1.5% of their wages towards the ESI scheme.

Which entities are required to Register under ESI Act?

Factories: Any factory or manufacturing unit employing 10 or more persons, irrespective of whether they are using power or not, is eligible for ESI registration.

Shops and establishments: Any shop, hotel, restaurant, cinema hall, newspaper establishment, or other similar establishment employing 10 or more persons, irrespective of whether they are using power or not, is eligible for ESI registration.

Educational institutions: Any private educational institution employing 10 or more persons, including teaching and non-teaching staff, is eligible for ESI registration.

Medical institutions: Any private medical institution, such as a hospital, nursing home, or clinic, employing 10 or more persons, including medical and non-medical staff, is eligible for ESI registration.

Contract employees: Any establishment employing 10 or more persons, through a contractor or subcontractor, is also eligible for ESI registration.

Applicability of ESI

As per the Employees' State Insurance Act, 1948, the ESI scheme is applicable to entities that employ 10 or more employees (in some states, the minimum employee threshold is 20). However, it is important to note that the scheme is applicable only to employees who earn a monthly income of up to INR 21,000 (basic wages + dearness allowance).

Under the ESI scheme, both the employer and the employee contribute a certain percentage of the employee's wages towards the ESI fund. The employer's contribution is 4.0% of the employee's wages, and the employee's contribution is 1.5% of their wages.

Entities that are covered under the ESI scheme are required to obtain an ESI registration certificate within 15 days of becoming applicable. Once registered, the employees are provided with an ESI card, which can be used to avail of various benefits such as medical care, maternity benefits, disability benefits, and unemployment benefits.

The coverage of the ESI scheme extends to a large network of dispensaries, hospitals, and medical clinics, which ensures quick medical care to the insured person. It is important to note that the rules and provisions of the ESI scheme may vary from state to state, and entities should consult with a professional or check with the local ESIC office to ensure compliance with the relevant rules and regulations.

Benefits of ESI Registration

Benefits for Employees:

Medical Benefits:

Employees registered under ESI scheme are entitled to medical benefits for themselves and their dependents. This includes free medical treatment, consultation, and hospitalization in ESI hospitals or ESI dispensaries.

Sickness Benefits:

Employees registered under ESI scheme can avail of sickness benefits in case of any sickness or injury. The benefit includes cash compensation equal to 70% of the wages for a maximum of 91 days in a year.

Maternity Benefits:

Female employees registered under ESI scheme are entitled to maternity benefits, including paid leave and financial assistance during pregnancy and childbirth.

Disability Benefits:

In case of permanent or partial disablement due to employment injury, employees are entitled to receive a monthly pension under the ESI scheme. This helps them to support themselves and their families in case they are unable to work due to the injury.

Dependents' Benefits:

In case of the death of the insured employee due to employment injury, their dependents are entitled to receive monthly pension or financial assistance.

Benefits for Employers:

Compliance with Legal Requirements:

Employers with more than 10 employees are required to register under the ESI scheme. By registering, they comply with the legal requirements and avoid penalties or legal issues.

Improved Employee Retention:

Providing ESI benefits to employees can help improve employee retention rates. It shows that the employer values the health and well-being of their employees.

Lower Absenteeism:

By providing ESI benefits, employees are more likely to seek medical treatment and recover faster. This can lead to lower absenteeism and higher productivity.

Reduced Payroll Costs:

Employers contribute to the ESI fund based on the employee's wages. This can help employers reduce their payroll costs by sharing the burden of healthcare expenses with their employees.

Improved Corporate Social Responsibility:

By providing ESI benefits to their employees, employers demonstrate their commitment to social responsibility and improve their reputation.

Documents Required For ESI Registration

The procedure for registration under ESI is completely online. Here's a summary of the documents required for registration of an establishment under ESI:-

Registration Certificate under the Factories Act or Shops and Establishment Act.

Certificate of incorporation, such as a Certificate of Company Registration for a company or Partnership deed for a partnership firm.

GST certificate of the establishment.

Memorandum of Association and Articles of Association of the company.

Address proof of the establishment, which can be utility bills (not exceeding three months), rental agreement of the land or property tax receipts

A list of all the employees working in the establishment.

PAN Card of the business establishment and all the employees working there.

Details of compensation for all employees.

A cancelled cheque of the bank account of the company.

List of directors of the company.

Register of attendance for the employees.

Frequently ask question

1. What is EPF Registration?

EPF registration refers to the process of registering an employer with the Employees' Provident Fund Organization (EPFO) for the purpose of providing benefits to employees under the Employees' Provident Fund (EPF) scheme. The EPF registration is mandatory for all establishments that employ 20 or more employees, and voluntary for establishments with fewer than 20 employees.

2. What is the purpose and essence of the EPF?

The purpose and essence of the Employee Provident Fund (EPF) is to provide retirement benefits to employees. The EPF is a social security scheme that was introduced to encourage savings and long-term financial planning for retirement. It is a mandatory scheme for all employees who earn a basic salary of up to Rs 15,000 per month and their employers to contribute to the scheme.

3. How to obtain the EPF registration certificate?

The EPF registration process for newly incorporated companies has been streamlined through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) Form. The SPICe+ form includes an option to apply for EPF registration along with other registrations such as GST, PAN, and TAN. However, for entities such as LLPs, proprietorship firms, and partnership firms, EPF registration can be obtained through the Shram Suvidha portal. The Shram Suvidha portal is an online platform that facilitates registration, filing, and compliance related to labour laws, including EPF.

4. When to mandatorily obtain PF registration?

Employers are required to obtain Provident Fund (PF) registration when they have 20 or more employees. This is mandated under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. However, even if an employer has fewer than 20 employees, they may voluntarily register for PF if they wish to provide their employees with the benefits of the PF scheme, which includes retirement savings, life insurance, and disability insurance.

What is the percentage of contribution?

The Provident Fund (PF) contributions are made by both the employer and the employee. The employee contributes 12% of their basic salary and dearness allowance (if any) to their PF account. The employer also contributes 12% of the employee's basic salary and dearness allowance (if any) to the employee's PF account.

What does ESI mean?

ESI refers to the Employee State Insurance scheme. This is a social security and health insurance program that provides medical and other benefits to employees and their dependents. The program is administered by the Employees' State Insurance Corporation, which is a government organization that manages the funds and operations of the scheme.

What are the benefits of ESI registration?

The benefits of ESI registration include medical benefits, sickness benefits, disability benefits, maternity benefits, and other benefits to employees and their dependents.

What are the consequences of not registering for ESI?

Failure to register for ESI can result in penalties, fines, and legal action against the employer. Additionally, the employer will not be able to avail of the benefits of the ESI scheme for their employees.

Can a business entity voluntarily register for ESI?

Yes, a business entity with less than 10 employees can voluntarily register for ESI if they meet certain eligibility criteria, such as having a power connection in their premises or using machinery for manufacturing purposes.

Like PF can I withdraw ESI amount?

ESI is a premium paid for medical benefits. If no benefit is obtained from it, there is no option available to withdraw amount from ESI Account.

How Mylegalbusiness.com can help us in PF/ESI Registration?

Mylegalbusiness.com is India’s Best online Business Registration and compliance services provider. Mylegalbusiness.com offers wide range of legal services, including assistance with PF and ESI registration. We will help you with the entire registration process, from filling out the online application form and relevant documents and completing the registration process.