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What is ESI Registration?

Employer State Identification (ESI) is a number assigned by the government to identify a business as a legal entity. It is usually used to facilitate the payment of payroll taxes, track the business’s tax liabilities, and provide liability protections for employers.

Advantages of ESI Registration

The main advantages of registering for Employment State Insurance (ESI) are:

Financial Security

ESI enables employers to provide social security benefits to employees and their families in case of illness, injury, and maternity. This provides financial security to the insured employees in times of need.

Tax Benefits

Employers and employees can claim tax deductions on the contribution made towards the ESI scheme.

Healthcare

Employees and their families are eligible for free healthcare services in over 15,000 ESI hospitals and clinics located across India.

Labour Compliance

Registration with the ESI Scheme is mandatory and helps employers avoid labour-related penalties and compliance issues.

Legal Protection

ESI registration provides legal protection to employers and employees in situations of workplace injury or accident.

Retirement Benefits

Employees and their family members are eligible for pension and other retirement benefits provided by ESI.

Employment Incentive

Businesses can take advantage of ESI registration to attract and retain employees.

What are the documents required for ESI registration?

For the registration of an organization under the Employees' State Insurance (ESI) Act, 1948, the following documents are required:

PAN card of the employer
Copy of the organization's registration certificate

Memorandum of Association
Articles of Association

Copy of Rent Agreement or Lease Deed of the office
Copy of the Board Resolution

Details of the employer's contribution
Other relevant documents
Details of employees

Important Points

What are the important points of ESI Registration?

Eligibility criteria

ESI registration is available to all organizations employing 10 or more people with wages up to ₹21,000 a month. The eligibility criteria for registering with the ESI system is based on the type of organization, the number of employees, and the salary of the employees. For example, companies with 10 or more employees and a salary of up to ₹21,000 a month are eligible for ESI registration. Other eligibility criteria may also apply.

ESI Act, 1948

The Employees’ State Insurance Act, 1948 is a social security legislation that provides medical and cash benefits to employees in case of sickness, maternity, disability, and death due to an employment injury. It also provides for other benefits such as dependents’ benefits, funeral expenses, etc. It was enacted in 1948 and is administered by the Employees’ State Insurance Corporation (ESIC).

Time required

It typically takes around 7-14 days to complete the registration process for a business entity to get an ESI registration.

Process of ESI registration

The step-by-step process for registering a business for ESI registration is as follows:

Gather the necessary information and documents for registration, such as the business address, principal employer's name, PAN number, bank account details, and details of the business.
After every six months, the employer will have to file a return with the ESIC and submit a statement of wage and contribution.

Apply for registration online on the Employee State Insurance Corporation (ESIC) portal or through the regional office.
Submit the documents and information required along with the application form.
The details will be verified with the help of the documents submitted.

The employer will be granted an ESI registration number and will be issued a certificate of registration.
The employer will have to make regular contributions to the ESI fund for the employees registered under the scheme.

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