ESI Registration Services
Get your business registered under the Employee State Insurance (ESI) Act. We handle filings and compliance to provide employee benefits like medical care, maternity leave, and insurance.
The Employees' State Insurance Act of 1948, is one of the most important laws in the social security laws. It requires the workers to have health insurance, access to medical care and financial support in the event of illness, pregnancy, incapacity, or death from work-related accidents. And it is administered by the Employees' State Insurance Corporation (ESIC), it is an independent organisation functioning under the Ministry of Labour and Employment, and it applies to businesses that employ a certain number of people.
The Act defines Employees' State Insurance (ESI) as a scheme that protects the employees against "the economic and social distress caused by the uncertainties of life", such as illness, injury, and loss of income. Under Section 2(12) of the Act, the term "employee" covers any person employed for wages, whether directly or through a contractor, and includes a wide range of occupations across industries. Moreover, this scheme is funded via contributions from both employers and employees, calculated as a percentage of wages, making it a joint responsibility.
Over 13 million workers are insured by this program, which receives contributions from over 5 lakh companies nationwide, according to the ESIC. In addition to being required by law, the ESI framework is an important instrument for raising employee satisfaction because it offers security in the event of unforeseen circumstances. ESI registration becomes important for preserving operational legitimacy and guaranteeing that employees receive the benefits they are entitled to as businesses attempt to fulfil compliance obligations.
Why Choose Benchmark
At Benchmark, we understand the details of statutory compliance and the critical role Employees' State Insurance (ESI) registration plays in safeguarding the welfare of your workforce. Our expertise lies in simplifying the registration process while ensuring accuracy and adherence to legal obligations.
Here is how we help you with the ESI Registration:
- We accurately determine your organisation's eligibility for ESI under the Employees' State Insurance Act, 1948.
- We prepare and verify all required documents to facilitate hassle-free registration.
- We handle the submission of employer and employee details on the ESIC portal.
- We guide you in calculating the employer and employee contributions as per statutory requirements.
- We ensure compliance with all deadlines for filing and contribution payments.
- We provide updates on amendments or changes in ESI regulations applicable to your industry.
- We resolve queries and assist with audits or inspections conducted by the ESIC.
Our Services
At Benchmark, we provide your business with a wide range of specialised services to simplify your Employees' State Insurance (ESI) registration process and give you full compliance with the Employees' State Insurance Act, of 1948.
Our service offerings under ESI Registration include:
- Consultation on eligibility criteria, contribution percentages, and applicability under ESI laws.
- Assistance in drafting and preparing employer and employee data files as per ESIC requirements.
- End-to-end support for employer registration on the ESIC portal.
- Preparation and submission of statutory forms, including Form 1, Form 5, and Form 6.
- Verification and rectification of employee details for error-free registration.
- Setting up employee contribution schedules and generating Employee Insurance Numbers (IP Numbers).
- Management of periodic updates, such as employee additions, terminations, and wage revisions.
- Assistance in obtaining Temporary Identification Certificates (TIC) and Permanent Insurance Numbers (PIN) for employees.
- Advisory on procedural requirements during inspections and audits conducted by the ESIC.
- Preparation and filing of monthly contribution statements and returns.
Employee Categories and Classifications under ESI Registration
Below is a detailed classification of employee categories eligible for coverage under the Employees' State Insurance Act, 1948. The classification ensures clarity in determining applicability and contribution requirements for different types of employees.
| Category | Description | Eligibility Criteria |
|---|---|---|
Permanent Employees |
Employees working full-time under a contract of employment. | Earning less than ₹21,000/month. |
Temporary Employees |
Employees engaged for a specific period or project. | Earning less than ₹21,000/month. |
Contract Workers |
Employees are hired through third-party contractors for various operational tasks. | Covered under employer's responsibility. |
Seasonal Workers |
Employees engaged in seasonal activities, such as farming, sugar mills, or agro-industries. | Eligibility depends on duration of employment. |
Part-Time Employees |
Employees working fewer hours than full-time employees but under a recognised employment contract. | Earning less than ₹21,000/month. |
Documents Required for ESI Registration
Proper documentation is required for smooth and accurate ESI registration under the Employees' State Insurance Act, 1948. We make sure thorough verification and submission of all necessary documents to facilitate compliance with statutory requirements.
The following documents are required for ESI registration:
- Certificate of registration under the Shops and Establishments Act or the Factories Act.
- PAN card of the business entity.
- Proof of establishment's address (e.g., rent agreement or utility bill).
- Bank account statement of the organisation.
- List of employees with their details, including Aadhaar, bank account numbers, and salary details.
- Employee attendance register and wage register.
- Digital signatures of authorised signatories.
- Copy of the latest challan for ESI contributions, if applicable.
- Memorandum and Articles of Association or Partnership Deed, depending on the business structure.
- Board resolution or authorisation letter for filing ESI-related documentation.
Step-by-Step Process for ESI Registration
The Employees' State Insurance (ESI) registration process involves multiple steps to comply with the statutory requirements outlined in the Employees' State Insurance Act, of 1948. Here is a detailed breakdown of the procedure:
Step 1: Determine Applicability
The first step is to confirm whether your organisation qualifies for ESI registration under the Act. This involves verifying the employee strength, which must meet the minimum threshold of 10 employees (varies by state), and ensuring that employees earning less than ₹21,000/month are included.
Step 2: Create Employer Login
After the initial step then you must create an account on the official ESIC portal. This requires entering basic organisational details, such as the name, address, and type of establishment. A unique login credential is generated, granting access to the employer dashboard for further actions.
Step 3: Submit Employer Details
Your organisation's details, including its registration under the Shops and Establishments Act or the Factories Act, must be submitted. Along with this, you must provide the PAN and bank account details of the business. These details are then verified by the ESIC to ensure authenticity.
Step 4: Register Employees
Each of your employee's data, including their name, Aadhaar number, salary details, and bank account information, must be uploaded on the portal. This step also involves generating Employee Insurance Numbers (IP Numbers), which is a unique identifier for insured individuals.
Step 5: Generate Employer Code
After submitting all necessary details, the ESIC assigns a unique Employer Code Number to the organisation. This code is essential for tracking your compliance and contribution submissions. It signifies the successful completion of the registration process.
Step 6: File Monthly Contributions
Once the registration is complete, then you are required to file monthly contribution statements, specifying the amount deducted from employee wages and the corresponding employer share. These contributions must be paid online through the ESIC portal before the due date to avoid penalties.
Step 7: Maintain Compliance Records
You must maintain records, such as employee attendance, wage registers, and contribution statements, for periodic inspections by the ESIC. Additionally, updates like new employee additions, terminations, or wage modifications should be promptly reported to the ESIC.
At Benchmark, we simplify this process by managing every step of the registration for you. Our team of experts ensures the accuracy of submissions, timely compliance, and hassle-free interaction with the ESIC portal.
Non-Compliance Risks and Penalties
If your business fails to follow the statutory requirements of Employees' State Insurance (ESI) under the Employees' State Insurance Act, 1948 can result in severe consequences. Below are the key risks and penalties associated with non-compliance:
- Monetary penalties for delayed or non-payment of ESI contributions.
- Prosecution under Section 85 of the ESI Act for intentional non-compliance.
- Interest charges on overdue contributions as per statutory rates.
- Disqualification from bidding for government contracts due to non-compliance.
- Legal action for failing to register eligible employees under the ESI scheme.
- Liability for medical expenses incurred by employees during non-coverage periods.
- Audits and inspections by ESIC authorities leading to additional penalties.
- Damaged organisational reputation due to non-adherence to employee welfare laws.
Conclusion
The Employees' State Insurance (ESI) registration is an essential statutory requirement for employee welfare and organisational compliance. Hence, ensuring that your business is registered under the Employees' State Insurance Act, 1948, shows your commitment to providing a secure and supportive workplace for your employees. From safeguarding employees against unforeseen events to avoiding legal complications, timely ESI registration is essential for any organisation.
At Benchmark, we help your organisation by taking up the ESI registration and compliance. Our team of experts is here to guide you through every step of the process, ensuring precision, accuracy, and complete adherence to statutory requirements.
Get in Touch
Contact us today to optimise your ESI registration and experience hassle-free compliance management.
FAQs
What is the time frame for completing ESI registration?
ESI registration typically takes 7–10 working days, depending on the accuracy of submitted documents and the processing time by the Employees' State Insurance Corporation (ESIC). Timely submission of required forms and employer details can expedite the process.
Is ESI registration mandatory for organisations with fewer than 10 employees?
ESI registration is generally applicable to organisations with 10 or more employees, but the threshold may vary depending on state-specific rules. For organisations below this limit, registration is optional but can be undertaken voluntarily to extend benefits to employees.
What is the role of the Employer Code Number in ESI registration?
The Employer Code Number is a unique identifier issued upon successful registration with the ESIC. It is used for all future correspondence, filing monthly contributions, and managing compliance records. This number ensures accurate tracking of the employer's obligations under the ESI Act.
What happens if an employer fails to file ESI contributions on time?
Non-payment of ESI contributions within the prescribed timeline attracts interest and penalties. The ESIC may also initiate legal action under Section 85 of the Act, which can include prosecution and additional fines for continued non-compliance.
How can an organisation amend its ESI registration details?
Amendments to ESI registration details, such as changes in employee information, business address, or contact details, can be made directly on the ESIC portal. Employers must submit supporting documents and follow the portal's procedure for approval.