The Employees’ State Insurance Corporation or Esic Registration is a statutory corporate body established under the ESI Act of 1948. This body is responsible for the functioning of the ESI scheme. The ESI scheme is a self-financing social security scheme. It protects employees from financial issues due to illness, disability, or death due to employee injuries. This article answers some common questions about the ESI registration process. Going forward, we are going to answer three essential questions – how to find the ESI eligibility for institution establishment, how to file the installation under ESI, what documents are required for the ESI registration process.
Which establishments are required for ESI registration?
As per the ESI Act, if a company crosses a particular employee count then it has to register under the ESI. This employee count varies from state to state, for example, in Rajasthan; the count is 10, while it is 20 in some other states. In the future, this count can be standardized to 10 across India. If an employer fails to register their company, they will face penalties. Once the company is registered, all the employees working at that time are automatically registered.
Therefore, check your state’s ESI guidelines and find out the number of employees required for the ESI registration process. If you have the required number, you will have to complete your ESI registration process within 15 days. Otherwise, the company or business will be fined.
What documents are required for new ESI installation registration?
For the ESI installation registration process, a business or company does not require a separate file of documents. As a matter of fact, all papers related to the business are required. The following list of documents is important for the ESI establishment registration process.
The Documents in which company details are included
- Company’s name
- GST / tax certificate
- Certificate of incorporation
- Address proof
- Bank account details with canceled checks.
The documents in which the details of the employer is available
- Aadhaar Card
- Specimen signature
- PAN card of owners / partners / directors
The Documents in which the employee’s details are included:
- Staff name
- Date of birth
- Date of birth
- Their father’s name
- Aadhaar card of the employee as well as the family member
- Date of joining.
Provide all documents and details in the form of an excel sheet, so it will be easy to process for registration. But, before you register your business, you must remember some important aspects.
- First of all, the ESIC registration process is a one-time activity, that is, if your company has registered once, it cannot be registered later.
- It may be that the number of employees at the time of registration was 10, but within a few years, this number decreased. However, ESI will still cover the organization.
- Secondly, when you are collecting Aadhaar numbers from employees, make sure that they are correct and there is no mistake.
- Further, every detail of the employees should be as per their basis.
- Currently, ESI is not producing any separate card for its records. Therefore, the Aadhaar card is the only document to get all the benefits.
- Now, if the details are filled incorrectly, the employees have to suffer. Ensure that employers update the correct details so that neither employees nor their family members have to go through any trouble at the time of need.
What is monthly compliance for ESI?
ESI establishment registration is similar to tying the matrimonial knot. Just as you are forced to go under secret for the rest of your life, ESIC registration is never going to cancel your company from its series. Apart from jokes, you should know that you have done monthly, quarterly and annual compliance after registering your company for ESI.
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On a monthly basis, you have to prepare an invoice for ESI and submit it on time. This is a contribution that goes as insurance for all your employees. Therefore, they can benefit from the government for health and other sectors. Apart from this, there are some other forms that you will have to fill every month like Employee Register, Leave Register, Form 16, and Form 24. In addition, companies will also have to file an ESIC return filing.
