How to get ESI Registration in India

Introduction

Business enterprises need to procure certain registration which is mandated by state and central government depending upon the eligibility and limitations specified under the various activities. One such registration which is set up by the central government is Employees’ State Insurance Act, 1948.

In this article, we will learn the process for registration under ESI in detail.

What is ESI registration?

ESI is self-financing social security and health insurance scheme which provide financial assistance to the worker and their dependent during the times of contingencies such as sickness, maternity benefit, temporary or permanent disablement.

This provides full medical benefits and cash benefit to compensate loss or damages arises due to employment injury or any occupation diseases.

When ESI registration is compulsory for any establishment

There are certain conditions where establishment or factories are compulsory require getting registered under ESI. Following are the circumstances.

• The strength of the employee: For some states, the strength is considered is 10 employees or more whereas, for some states, it is 20 or more. Hence, before seeking registration, you must look whether ESI registration is required or not.

For example, there is following establishment employing 10 or more employees shall require the ESI registration:

1. Shops
2. Hotels and restaurants
3. Cinemas
4. Road motor transport establishment
5. Newspaper establishment
6. Private educational institutions

• Wage Limit: The existing wage limit of the employee is 21000 or less per month for coverage under ESI act. However in a situation where all employees are drawing above Rs. 21,000/- then still need registration,
• Finance of ESI scheme by contribution: ESI scheme is financed both by employer and employee. Where employee contributes 1.75% and employer contribute 4.75% respectively.

Procedure to register for ESI in India     

The registration of employers under ESI is complete online process without any requirement of physical submission of documents. The factory or establishments to which this act applies are required to be registered within 15 days by submitting online application on the web portal of ESIC i.e. www.esic.in. Employers should update bank details, email id and mobile number of their employees.

1 – File the ESI application

For registration under ESIC employer needs to fill the required information. Once you submit complete information code is generated. Copy of the registration letter which is valid proof of registration in Form C-11 in along with the user id and password is sent to the email id of the employer.

2 – Sign up with credentials

Again you need to sign up the details with the same like user id and password received through email and enter details like company name, principal employer name, and religion and email address.

3 – Get information from employer

Form –01 is required to be filled for employer registration you need to fill some mandatory and nonmandatory information along with the details of a number of employees and data of factory/ establishment.

4 - Documents required for ESI registration

There are certain necessary documents which are required to be compulsory required to be attached in PDF format after getting digitally signed. Following are the documents which are required to be attached with form – 01 for ESI registration:

1. Documents relating to the constitution of the Factory/Firm/Establishment,
2. Evidence in support of the date of commencement of business/first sale,
3. List of partners/ Directors with their addresses,
4. Copy of the PAN
5. Address proof like passport/voter identity card, month wise employment position etc. are the essential document.

5 – Acknowledgment for proof of registration

On completion of the employer’s registration in the form – 01 copy of registration Letter in C-11 sent to registered email id which is valid proof of registration and it does not require any signature.

6 – For Generation of challan:

The employer needs to file advance contribution while registration if their nature of work comes under security agencies, contractor, Man Power suppliers. once you click the initial contribution button system will generate advance challan on the screen.

7 – Intimation sent by email to employer

The employer will receive the System generated Registration Letter (C-11) on registered email id once challan get realized from the bank, The C-11 it is used as a valid proof of registration of the unit under ESI Act.

Conclusion

It is the duty of Employer to ensure that they must get their registration under the scheme. If you want to know more and need further guidance feel free to contact us at info@hubco.in and get a free consultation.

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