Expert Assistance for ESI Registration

Businesses operating in India are required by law to register for Employee State Insurance (ESI), which is overseen by the Employee State Insurance Corporation (ESIC). For Indian workers making a certain monthly income, this program offers social security and health insurance benefits, which usually also include their dependents. It applies to businesses with ten or more employees, depending on the nature of the business and the region.

Our team of professionals at Taxhint Advisors is committed to helping companies manage the challenges associated with ESI registration. Our client-focused approach and thorough comprehension of regulatory requirements enable us to guarantee a hassle-free and smooth online ESIC registration process for your firm, ensuring your employees receive the full range of benefits from the ESI plan.

ESI Scheme

Employee State Insurance (ESI) is administered in accordance with the 1948 ESI Act. It is a government program intended to give employees social security benefits. The Employee State Insurance Corporation is responsible for overseeing the administration of this program (ESIC). In order to be eligible for the program, employers must properly register their enterprises with ESIC and provide worker details.

Employers may find it difficult to comply with the complex regulations set forth by the government. You can get help from Taxhint Advisors ESI specialists for these issues.

Definition and Scope of Establishments Under the ESI Act

Regardless of its geographical location, any organised institution including men or women is considered an establishment under the terms of the Employee State Insurance (ESI) Act. This includes retail stores and commercial establishments, which must sign up for the ESI program if they have ten employees—or twenty in some states—and these employees make up to Rs. 21,000 (or Rs. 25,000 for those with disabilities) every month.

Who is eligible for ESI Registration?

The official notice states that the following state government-affiliated entities are covered by Section 1(5) of the ESI Act:

• Retail outlets
• Dining establishments or hotels solely involved in sales
• Movie theatres, including preview facilities
• Establishments related to road transportation
• Newspaper organisations (exempt from the Factory Act)
• Private healthcare facilities
• Private educational institutions
• Casual workers employed by Municipal Corporations or Bodies

These entities are required to register with the ESIC if they have a workforce of 10 or more individuals.

Furthermore, the Central Government has expanded the ESI Act's Section 1(5) coverage to include the following central government-related entities:

• Retail outlets
• Hotels and dining establishments
• Establishments related to road transportation
• Cinemas, including preview theatres
• Newspaper organisations
• Businesses involved in:
• Insurance
• Non-Banking Financial Companies (NBFCs)
• Port trusts
• Airport authorities
• Warehousing

For these central government-associated entities, mandatory ESIC registration is required when employing 20 or more individuals.

Eligibility criteria for ESI registration

The eligibility criteria for ESI registration are as follows:

• Under Section 2(12) of the ESI Act, 1948, workers at businesses, factories, or shops with more than ten employees are entitled for ESI benefits.
• Hospitals and dispensaries under the management of ESIC provide ESI medical benefits to all workers and their dependents in all industries and sectors.

Under the ESI Act, pregnant women employees who make less than Rs. 21,000 per month and disabled people who make less than Rs. 25,000 per month are entitled for maternity benefits. In addition to financial and medical benefits, this also covers paid time off for a number of situations, including adoption, miscarriage, pregnancy (both before and after delivery), and medical terminations.

Advantages of ESIC Registration

Employees who register with ESIC are eligible for a wide range of benefits that protect their family, income, and health. Principal advantages consist of:

• Sickness Benefit: During approved sickness intervals, employees are entitled to 70% of their salaries for a maximum of 91 days annually.
• Extended Sickness Benefit: For up to two years, employees who have specific serious and long-lasting illnesses may be eligible for an extended benefit equal to 80% of their salary.
• Enhanced Sickness Benefit: Workers undergoing sterilisation receive full pay compensation; a vasectomy requires seven days, while a tubectomy requires fourteen.
• Medical Benefits: To ensure the well-being of employees and their families, full medical care is provided.
• Retired Medical Benefits: After paying an annual premium of Rs. 120, retired personnel and their spouses are qualified for ongoing medical benefits.
• Maternity Benefit: To ensure financial security after childbirth, expectant mothers are entitled to 26 weeks of full pay as maternity benefit, which can be extended by one month.
• Dependents' Benefit: If an employee passes away from a work-related injury, their dependents will receive a monthly payment equal to 90% of their wages.
• Benefit for Temporary Disablement: Workers who sustain an injury at work are entitled to 90% of their wages for the duration of their disability.
• Permanent Disablement Benefit: Employees who are permanently disabled are eligible to receive a monthly payment equivalent to 90% of their salaries, which is determined by a Medical Board depending on the extent of their loss of earning capability.
• Funeral Costs: To help with funeral costs, a predetermined amount of Rs. 15,000 is given to the surviving family members or the person performing the final ceremonies.

Documents Required for ESI Registration

In order to register online for ESI (Employee State Insurance) on the ESIC website, the following documents must be submitted in digital or electronic format:

• ✓ Business Registration Proof: Depending on the kind of business, one of the following documents
• ✓ Factories Act Registration Certificate.
• ✓ Shops and Establishment Act Registration Certificate.
• ✓ Certificate of Establishment of Incorporation, relevant for the type of entity
• ✓ Certificate of Company Registration for businesses.
• ✓ For partnership firms, a partnership deed.
• ✓ Goods and Services Tax (GST) Registration Certificate of the establishment.
• ✓ The documents that founded the company:
• ✓ Memorandum of Association (MoA).
• ✓ Articles of Association (AoA).
• ✓ 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.
• ✓ List of the company's directors.

Compliances After ESIC Registration

Following ESI (Employee's State Insurance) registration, an establishment needs to file the necessary ESI returns and follow certain compliance requirements. These responsibilities are essential to maintaining smooth operation and compliance with legal requirements. The following are the required compliances:

• Maintenance of the Attendance Register: In order to track each employee's attendance, the business needs to keep a strict record of it. This acts as a foundational record for internal record-keeping and compliance.
• Register of Wages: Carefully kept records of all employee wages should be kept in one place. This register guarantees compliance with ESIC requirements and is essential for the clear reporting of salary details.
• Inspection Book: Any inspection conducted on the property must be documented in an inspection book. Transparency and regulatory compliance are facilitated during official inspections thanks to this.
• Submission of Monthly Returns and Challans: The establishment is required to turn in monthly returns and challans within the initial fifteen days of the following month. This entails giving information about the personnel, their attendance records, and the corresponding ESIC contributions.
• Accident Register: It is required to keep a record of all accidents that occur on the property. For compliance, accurate accident reporting is necessary. It makes it easier to take a proactive stance on workplace safety.

Why Choose Taxhint Advisors for ESI registration?

The team of seasoned specialists at Taxhint Advisors, which includes chartered accountants and legal experts, provides the best legal and compliance services for ESI PF registration in India. We handle the work of registering an employer with ESI with the utmost care and attention to detail since we understand how important it is.