ESI Registration - Taxonomy

ESI (Employee State Insurance) registration is a mandatory requirement for certain businesses in India under the Employees’ State Insurance Act, 1948. The ESI scheme is a social security and health insurance program designed to protect employees in case of sickness, maternity, disablement, and death due to employment injury.

ESI (Employee State Insurance) registration is a mandatory requirement for certain businesses in India under the Employees’ State Insurance Act, 1948. The ESI scheme is a social security and health insurance program designed to protect employees in case of sickness, maternity, disablement, and death due to employment injury. Here are the key points regarding ESI registration:

Eligibility Criteria:

1. Employee Strength: ESI registration is mandatory for entities with 10 or more employees (in some states/union territories, the threshold may be 20 employees).
2. Wage Limit: The scheme applies to employees earning a wage of up to Rs. 21,000 per month.

Registration Process:

1. Visit the ESI Corporation Portal:
   • Access the official ESI Corporation portal (https://www.esic.in/).
   • Navigate to the ‘Employer’ section.
2. Online Registration:
   • Fill in the online application form with the required details.
   • Submit the necessary documents, including the company’s registration certificate, a list of employees, and PAN card.
3. Verification: After submitting the application, the concerned authorities will verify the information provided.
4. Generation of Code Number: Upon successful verification, the employer is issued an ESI code number.

Documents Required for ESI Registration:

1. Registration Certificate of the Business Entity: This could be the Certificate of Incorporation, Partnership Deed, or any other document indicating the legal status of the business.
2. Memorandum of Association (MOA) and Articles of Association (AOA): In the case of a company.
3. PAN Card of the Business Entity:
4. List of Employees: This should include details such as name, address, date of joining, and salary.
5. Bank Statement: A canceled cheque or bank statement to facilitate the electronic fund transfer of ESI contributions.
6. Address Proof: Utility bills or rental agreement for the business premises.

Compliance:

Once registered, the employer needs to comply with certain ongoing responsibilities, including:

1. Monthly Contribution: Both the employer and the employee contribute a percentage of the employee’s salary towards the ESI fund.
2. Filing of Returns: Regularly filing ESI returns and maintaining necessary records.
3. Updating Records: Any changes in employment status, such as new hires or resignations, should be promptly updated.

It’s crucial to stay informed about any changes in the ESI rules and regulations, as non-compliance can lead to penalties.