PT PF ESIC Registration
Labour law compliances are considered to be one of the most difficult regulatory compliances to adhere with. Dealing with labour inspections, disciplinary proceedings, coordinating with trade unions and the drafting of requisite legal documents. One of those compliances is Employee State Insurance (ESI), Employee Provident Fund (EPF) Registration and Professional Tax (PT).
When do I need ESI registration
You need the registration if:
- You are running a cinema, shop, service providing hotels or restaurants (not into manufacturing), newspaper establishments, roadside motor transport establishment, private educational institution and medical institutions;
- Your establishment is not a seasonal factory/mine;
- Your establishment employs 10 or workers; and
- The wage of the workers doesn’t exceed INR 21,000
Benefits of ESI registration
- Full medical benefits are provided under this.
- Smooth and easy access to medical care in ESI Dispensaries/ Hospitals.
- Funeral and old age care expenses.
- Sickness leave benefits, 70 per cent which lasts for max 91 days annually.
- If death/ disability happens to the employee, 90 per cent of the salary to the dependents.
When do I need EPF registration
- If your establishment falls under the definition of “factory” within the implemented area and
- If your establishment employs 20 or more workers. In certain cases, the Central Government makes it mandatory for certain establishments even with less than 20 employees to have an EPF registration.
Benefits of EPF registration
- EPF online scheme offers a set interest rate on the deposit made to EPF India. Further, rewards on maturity also add to the employees’ fund.
- Around 8.33% out of the total employer’s contribution is directed towards the Employee Pension Scheme which in long run assists towards a healthy retirement corpus.
- EPF can also be utilised as emergency corpus when an individual employee requires funds in an emergency
- Employee’s contribution for their PF account is eligible for tax exemption under S. 80C of the Indian Income Tax Act. Further, earnings via EPF scheme are also tax exempted (upto INR 1.5 lakhs)
- EPF India members are entitled to avail the benefits of partial withdrawal. Employees can withdraw some funds out of their PF account for specific requirements like higher education, constructing a house, wedding expenses, medical expenses, etc.
Documents Requirements for above
- Incorporation Certificate (Partnership deed in case Partnership)
- Registration Certificate under either Factories Act or Shops or Establishment Act
- Permanent Account Number (PAN) of the company (Owner’s, in case of a sole proprietorship)
- Company’s Memorandum of Association and Article of Association
- Copy of the registration certificates/licenses available with the organisation, like GST registration, MSME registration certificate, etc.
- Company’s address proof.
- Proprietor’s/ Directors’ / Partners’ PAN, Identity and address proof.
- Details of 10 (for ESI) and 20 (for EP) mentioning their date of joining and salary rate
- Consent Letter (for ESI) and Voluntary Registration (for EPF) in a pre-specified format along with their 2 passport size photos
ESI / EPF Rates & Contribution
For ESI, the employer’s contribution is 4.75% and employees contribute 1.75%, total being 6.5% of the gross salary. In case of EPF, there is an equal contribution of 12% by the employer and employees of the basic wages plus dearness allowance plus retaining allowance, with the deduction rate of 10% (if the number of employees is less than 20).
Deduction for Professional Tax (PT)
Professional Tax is levied by the state governments for availing you the infrastructure so that you can carry on your profession in that state. Not all states have Professional Tax, but where it persists, it is mandatory. The calculation of Professional Tax is made in accordance with pre-determined tax slabs and the monthly income level. The deduction amount varies from INR 200 to at max INR 2,500 annually.
Before starting with the registration process, we ensure a robust compliance system thereby making the registration process smoother, faster and efficient. We take off the burden of remembering due dates or the fear of ending up in penalties due to non-compliance from your chest so that you can focus on business development instead of procedural work.
We are a confluence of CAs and CSes which enables us to tailor solutions for all the possible business requirements of your organisation, thus you save on the business bandwidth of outsourcing to multiple service providers or salvage the cost of changing the service provider as the business grows.
BNG group is an extraordinary team of young professionals, with excellent service and great results.
– Shekhar Zaveri, Chocodolce
We offer these registrations, along with a range of other services to take full accountability as the virtual CFO to your business.
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