ESI Registration

ESIC – Step By Step ESI Registration Procedure Online in India

ESI Registration has been made mandatory for the category of business. ESIC Registration is useful for the employer as well for employees. In this article, we will discuss the ESI registration procedure in India.

What is ESI Registration?

ESI stands for ‘Employees State Insurance’. It is Social Security to all employees of an organization. ESI Registration provides monetary and medical benefits to Employees in a case of sickness, maternity, and employment injury and to make provisions for related matters. The Employees’ State Insurance Act, 1948 provides an integrated need based social insurance scheme. The Act also guarantees reasonably good medical care to workers and their immediate dependants.

Who are all eligible to Register under ESI?

• Any factory or business establishment having 10 or more than 10 employees, irrespective of salary, have to register with ESI.
• Any business having10 or more than 10 employees shall be required to procure the registration under the ESI Act.
• Shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 10/20 or more person.
• Private Medical and Educational Institutions employing 10/20 or more persons in certain States.
• It is not sufficient that 20 persons are employed in the shop. They should be employed as per Section 2(9) of the Act, getting the wages prescribed therein
• Entrepreneurs shall make ESI contributions for all employees who have a salary of less than Rs.15,000 per month. Less than Rs.15,000 monthly salaried Employee get health and sickness benefits through this statutory scheme. In the scheme, employer’s contributes 4.75% and an employee contributes 1.75% for ESI. An organization having all the employees monthly salary more than Rs.15,000, then the organization would have to file a NIL return.

What are the Benefits Employee Entitled to Receive?

• Medical Benefit
• Sickness Benefit
• Maternity Benefit
• Disablement Benefit
• Dependent Benefit
• Other Benefit: Funeral Expenses
• Confinement Expenses

Documents Require to Start ESI Registration Procedure:

• Certificate of Registration or License issued under Shops and Establishment Act or Factories Act, if available.
• Memorandum and Articles of Association or Partnership Deed or Trust Deed, depending upon the constitution of the ownership of the establishment.
• Certificate of commencement of production and/or Registration No. of CST/ST, if available.

Registration of Factories and Establishment under this Act:

As prescribed under Section 2A of the Act read with the regulation 10B of the Cat, every factory or establishment shall be registered within the period of 15 days from the date of its applicability of them in the manner prescribed in the regulation.

Documents required for ESI Registration:

• Documents of the constitution of the Factory/Firm/Establishment
• Evidence in support of the date of commencement of production/business.
• List of partners/Directors with their addresses
• Copy of PAN card of the Factory/Firm/Establishment
• Address proof of Passport/Voter Identity Card of the Factory/Firm/Establishment
• Month-wise employment position etc.

What is the ESIC Registration Procedure?

• The factory or establishment can apply for registration for Employer’s Registration in Form (Form-01).
• The organization gets an identification number as the code number. The code number is a 17 digit unique identification number.
• In addition to a registration form, the Employee is required to fill in Form – I with a family photo in duplicate to the employer.
• Employers shall submit this document to the ESI Office.
• After satisfaction of an application, the employee is allotted an insurance number and issued a temporary identity card for availing medical benefits for him/herself and his/her family.
• Thereafter, the permanent identity card is issued, which can be used by the employee even after transferring jobs.

The Requirement of Compliance after ESI Registration:

Companies under ESIC coverage must file the annual return. Additionally, they are required to show the changes if any during the previous year. Furthermore, you must submit the return of contributions enclosing a copy of all ESI contributions paid once every six months.

Organizations under ESIC Registration must maintain the following records:

• Attendance Register;
• Wages Register;
• Form-6 Register;
• Accident Register;
• Inspection Book
• A file containing all monthly challan& returns submitted.

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