ESI Registration

ESI Registration

ESI registration for businesses having less than 25 employees.

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ESI registration

The employee state insurance (ESI) is managed and regulated by the Employee State Insurance Corporation which is an autonomous body under the Ministry of Labour and Employment, Government of India. The ESI scheme was started for the Indian Employees that provided monetary, medical, and other benefits from the employer to the employee.

Currently any factor or employment or any establishment that has employed over 10 employees with a minimum salary of Rs. 21,000 has to mandatorily register itself with the ESIC.

Eligibility

Who is eligible to obtain ESI registration in India?

To be eligible for ESI registration is to have more than 10 workers. In some regions, ESI registration is possible for establishments only if there are more than 20 employees. Here are some other criteria that need to be satisfied for obtaining ESI registration.

  • An employee whose gross salary is up to Rs. 21,000 per month can avail of this with the help of the employer.
  • The establishment is registered with the EPFO.
  • The total contribution to ESI is 6.5% of the gross salary and it can be further divided as:
    • 4.75% by the employer
    • 1.75% of the employee
  • For industrial units where there are chances of occurrence of injury or health issues all the employees with a salary less than Rs.21,000 compulsorily need to get ESI registration.

Payroll processing and HR management

  • Payroll processing and HR management is a highly complex task for most small businesses due to the various compliance requirements in India.
  • Most startups do not even have a well-established HR system and processes leading to a discrepancy in hiring the top talents, retaining good employees, and even while building a productive workplace culture.
  • By outsourcing payroll and HR management to IndiaFilings, an individual can enjoy a stress-free and error-free payroll cycle every month.
  • Also, our HR experts can help in implementing world-class HR processes in the organization from day one to support the growth of the business.

Documents required for obtaining ESI registration

For obtaining ESI registration in India here is the list of documents that is to be submitted by the employer along with the application:

  • Registration Certificate of the Shops and Establishment Acts.
  • Factories Act
  • Address proof of Principal place of business
  • Copy of PAN Card
  • Bank statement (Latest)
  • Memorandum and Articles of Association or the partnership deed or trust deed depending on the nature of the entity.
  • Certificate of Commencement registration no

The monthly pay sheet is also required for computing the contribution amount for each employee for ESI filings.