ESI Registration
Employee State Insurance (ESI) registration is a mandatory compliance requirement for businesses in India, governed by the Employee State Insurance Corporation (ESIC). This scheme provides social security and health insurance benefits to Indian workers earning a specified monthly wage, typically extending to their dependents. Depending on the business type and location, it applies to companies with 10 or more employees.
ESI Scheme
ESI (Employee State Insurance) operates following the ESI Act of 1948. It is a government scheme designed to provide social security benefits to workers. The administration of this scheme falls under the purview of the Employee State Insurance Corporation (ESIC). Employers must formally register their establishments with ESIC and furnish worker details for inclusion in the program.
Complying with the intricate regulations stipulated by the government can pose a significant challenge for employers. IndiaFilings' ESI experts are available to assist you with these matters.
Definition and Scope of Establishments Under the ESI Act
The Employee State Insurance (ESI) Act categorises an establishment as any organised entity involving men or women, regardless of its physical location. This includes retail outlets and commercial shops, which are mandated to enroll in the ESI scheme if they employ 10 workers or 20 in certain states, provided these employees earn up to Rs. 21,000 per month, or Rs. 25,000 for individuals with disabilities.
The following documents are required for ESI (Employee State Insurance) Registration, and they should be provided in digital or electronic format for online registration on the ESIC website:
For the ESIC registration online process, businesses are not required to submit physical documents. The necessary documents to be uploaded during the online registration include
Business Registration Proof: One of the following based on the business type:
Factories Act Registration Certificate.
Shops and Establishment Act Registration Certificate.
Establishment Incorporation Certificate, applicable as per the entity type:
Company Registration Certificate for companies.
Partnership deed for partnership firms.
Goods and Services Tax (GST) Registration Certificate of the establishment.
Company�¢??s Founding Documents:
Memorandum of Association (MoA).
Articles of Association (AoA).
Establishment�¢??s Address Proof: One of the following can be provided:
Recent utility bill (electricity, gas, or telephone not older than three months).
Rental agreement for the establishment's premises.
Property tax receipt for the establishment's location.
Employee Details: A comprehensive list of all employees at the establishment.
PAN Cards: PAN details of the business and all employed individuals.
Employee Compensation Details: Information on the salary/wages of all employees.
Banking Information: A cancelled cheque from the company's bank account.
Company Leadership Details:
List of the company's directors.
List of the company�¢??s shareholders.
Employee Attendance Register: Maintaining a record of employee attendance.