This article covers the topic of applying for ESI Registration. Before you begin, it is important to be fully aware of the documentation requirements, how the process works and where to apply. Find out all this and more in this blog!
If you are looking for information on how to apply for the Pensions Fund and Employers’ Social Insurance Contributions (ESIC) registration, then this blog is for you.
You will also need to provide contact details for two people who can act as your authorised representatives if something happens to you before you reach the age of 70. These people can also authorise payments on your behalf if required. Finally, you will need to provide details of any employers that you have worked for in the past.)
What is the ESI (Employees’ State Insurance Corporation) Act?
ESIC is an insurance company which provides insurance to employees in the form of PF and EPF. The ESIC Act was passed to help provide insurance for employees in the event of unemployment or sickness.
What is ESI Registration?
ESI registration is a government scheme that provides financial assistance to eligible members of the general population. The scheme provides financial assistance to individuals, families and small businesses.
To be eligible for ESIC registration, you must:
Be aged 18 years or above.
Have an annual income below Rs 20,000 (annual salary) or Rs 2 lakh (net worth) in case of a family member or small business proprietor, whichever is less.
Not be in receipt of any other form of social security benefits.
Not have a disability that Interferes with work or education.
The ESI scheme is a social security and self-financing scheme which helps workers get free health benefits by contributing to the state’s coffers. It helps employees, their families, and retired people when they are sick or disabled with medical coverage and funeral reimbursement. However, employers that have more than ten employees usually need to become part of the scheme in some states.
The Employee State Insurance (ESI) Act of 1948 governs the ESI plan and allows it to be administered by a government body. The ESIC is an actionable body created to administer the perimeters of the ESI law. In India, all activities with respect to the ESI plan are governed by this independent corporation.
To get compensated with the proper benefits, ESI recognition must be a legal requirement for employers who have more than ten employees and earn a maximum salary of Rs. 21,000 p.m. By getting ESI recognition, workers are guaranteed with monetary benefits as well as health and welfare subsidies from their employer.
What is ESI Schema
This is an arcane term describing a social security scheme, where the insured employee and their family members are covered in case of sickness, disability, injury, or death caused by accidents in the course of employment. The plan focuses on providing medical facilities for both employees and their family members involved.
What is ESIC Code?
An ESIC code number is a unique 17-digit identification number issued to every establishment. Employers may generate their own ESIC numbers, or they may be assigned by Social Security Officers.
ESIC stands for Employees State Insurance Corporation. Benefits of ESIC include comprehensive medical benefits, including dependents, because it’s easy to use the ESI registration at different ESI hospitals and dispensaries, and any payments made will be compensated or reimbursed. In addition, it takes into account the needs of the disabled.
Benefits of ESIC registration in India often include medical care in the ESI Dispensaries or Hospitals and salary benefits for those who are sick, as well as various maternity and sickness benefits, including paid leaves for after childbirth and the death of an insured person. Funeral expenses are also provided to the deceased family.
People who have permanent disability insurance will receive 90% of their salary after a few years as an insurance benefit.
Any entity which engages in one or more of the following activities: (1) manufacturing, (2) trade, (3) service, (4) entertainment, or healthcare is eligible for ESIC Registration
For a factory, there are several ways in which an occupier or owner of the factory can be considered a principal employer. For example, the owner of a factory could be considered as the principle employer if they are listed among the owners of it. If an occupier or manager is listed among the occupiers or managers at that factory
Government of India establishments are known as Principal Civil Employers. The head of the department in these professions will be considered the Principal Employer. In all other businesses, the person in charge is referred to as their Principal Employer.
A person who is an immediate employer under the Employment Standards Act can be either of those listed below: One who completes any work within the customer’s factory, without supervision from another employee or supervisor, One who works outside of the premises supervised and managed by a customer, One who provides his own employees to a customer without being an employee himself. And consider a contractor.
Establishments with more than 10 employees and have a monthly salary of Rs. 21,000, must compulsorily register with ESIC within 15 days. Under this scheme, employers contribute an amount of 3.25% of the monthly salary paid to their staff, while the employee contributes only 0.75%. However, if an employee’s wage is less than Rs. 176 per day, they do not have to pay anything towards the contribution to ESIC.
In order to obtain an ESIC number, the following items are required:
A Certificate of Incorporation
A Partnership Deed
GST registration certificate of your company
Documents of Association for your company.
Here are the steps for ESIC Registration:
To apply for ESIC registration, the applicant is required to visit the official website.
Get your login credentials. The person registering can make his password, then enter a username. This user name is for when you file your taxes or another similar task.
In the third step, a confirmation email is sent to the applicant’s registered E-mail ID and also on the registered mobile number.
Enter username and password: Now the applicant is required to log in using the username and password that was provided previously.
In the fifth step, applicants are asked to add all of the necessary details to their application.
After the application form is filled out, the applicant is required to pay a fee. Payment options are processed online, and the amount of the fee paid is credit towards future six months of subscription fees.
Once all details have been submitted, the registration certificate will be issued by the ESIC. This 17-digit UID number is a unique registry that shows your registration to take part in the Employee State Insurance Corporation’s financial aid program.
Once an establishment or factory is registered and required to comply with the provisions of the ESI Act, they are then required to maintain attendance records, complete wage registers, and an inspection book. As well as be compliant on accident reports at the end of the month.
With the implementation of ESI registration and returns, employers are required to file returns every six months. The following documents are required for filing: Form 6 – Register; Register of wages; Monthly Challans & Returns; Register of Employees’ Attendance
Employers in India who fail to comply with their ESIC obligations, such as not getting registered or not providing returns, must pay a fine of 10,000 rupees.
The Employee State Insurance Corporation (ESIC) is one of the lowest-cost methods of providing insurance for people in India.
The Employees’ Social Insurance Scheme was started for Indian workers. The workers are provided with a huge variety of medical, monetary, and other benefits under the Employees’ Social Insurance Act from the contributions made by both the employer and employee towards the Employees’ Social Insurance Scheme.
Employers with more than 10 employees that have a monthly salary of Rs.21,000 will be required to register within 15 days from the date of application in some states. Despite the large increase, employers still have time to take action.
Employers would contribute 3.25% of their employee’s wages and employees need to pay only 0.75% of their wages every month. However, there is no penalty for staff who earn less than Rs. 176 a day, so they are not required to contribute anything.
Since the ESI registration online is simple, no physical documents are required to be submitted. The documents required for ESI registration:
The Registration Certificate that you might have obtained either under the: Factories Act, or Shops and Establishment Act.
The incorporation documents include a certificate of incorporation
Registration document in case of a company
The Memorandum of Association and Articles of Association also come into play depending on what type of entity you have.
Any one of the following can be submitted as address proof: a utility bill not to exceed three months, a rental agreement that shows the land on which the establishment is situated, property tax receipts of the land on which the establishment is situated, and a list of all the employees working at your business.
Proof needed for registration with ESI: Company’s PAN Card, all employees who work in the company, payment details of all employees, canceled checks from the business’ bank account and lists of everyone who owns or is involved with the company.
Benefits of ESIC Registration are varied. Some of the benefits are: 70% salary for illnesses that last for a maximum of 91 days, medical benefits for the employee and their family members, maternity leave for pregnant women.
Though in cases of disability, employees can still be eligible to receive a portion of their pension as well as significant funeral expenses (paid by the company), Old age medical care and other related expenses.
After registering an establishment, the establishment needs to comply with the following: maintain the attendance register; maintain a complete list of wages for workers; make sure to keep a copy of your inspection book; keep a monthly income and expenditure statement, report any accidents on premises.
After the registration under the ESIC, employers have to file half-yearly ESI Returns. The following documents are required for the filing of these returns: Register of attendance, Form 6 – Register, Monthly returns and challans.
If you are looking to apply for the Employees’ State Insurance Corporation (ESIC) scheme in Delhi, there are a few things you need to know before starting. Here is a guide on how to apply for ESIC registration in Delhi.
Documentation: This includes your Aadhaar card, PAN card, and proof of income such as your payslip or bank statement. The application can be found at esic.nic.in/. You will need to provide your full name, Aadhaar number, gender, address, and occupation. You will also have to upload a scanned copy of your documents and answer a few questions about your insurance history.
Once you have completed the online application form, you will need to send it along with the required documents to the nearest ESIC office in Delhi. The processing time for applications varies based on the number of applications received each month, but it generally takes around two weeks for an application to be processed.
Why Choose Lex N Tax Associates?
If you are looking for a tax preparation firm with experience and expertise in PF ESI Registration and Employees’ Statutory Insurance (ESIC) schemes, you should definitely consider Lex N Tax. We have been helping individuals and businesses to register for PF and ESIC, so we are well-placed to offer you quality service.
Here are some of the reasons why we believe that Lex N Tax is the best choice for you:
Our team of experts is passionate about pension registration and understands the importance of getting your money into the right scheme.
We have a proven track record of providing high-quality service at affordable prices.
We will take the time to understand your specific needs and requirements, so you can be sure that your money is being invested wisely.
We will provide you with all the information and support you need to make the process as easy as possible for you.
If you have been thinking about applying for PF or ESIC registration, now is the time to do it. The deadline is coming up very soon and there are a lot of things to take into account if you want to be successful. This article will help you get started with the application process, but don’t forget that there are lots of resources online that can guide you through every step. Good luck!