Business-License & Registration

ESI REGISTRATION & RETURN: ABOUT: ESI stands for Employee State Insurance, a scheme managed by the Employee State Insurance Corporation (ESIC) governed by the Ministry of Labour & Employment under the government of India. ESIC is a self-financing social security and health insurance scheme that provides medical benefits, sickness benefits, maternity benefits, disablement benefits, and various other benefits such as funeral expenses, free supply of physical aids, etc. to the employees and their families. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th of the share cost of medical benefit. • The following establishments employing 10 or more persons attracts ESI coverage : o Shops o Hotels or restaurants not having any manufacturing activity, but only providing service o Cinemas o Roadside Motor Transport Establishments o Newspaper establishments o Private Educational Institutions and Medical Institutions. ESI registration is to have more than 10 workers. In some states, the minimum number of employees required for coverage is 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions. 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. • 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. Benefits of ESIC Registration: • Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness, and which lasts for a maximum of 91 days in any year. • medical benefits to an employee and his family members. • Maternity benefit to the women who are pregnant (paid leaves). • If the death of the employee happens while on work – 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee. • Same as above in case of disability of the employee. • Funeral expenses. • Old age medical care expenses. Penalties for Non-Payment or Delayed Payment: As per section 45 of the ESI Act, any employer who is not complying with the provision of ESIC may face several consequences that are mentioned below. Further, under Reg. 31C ESIC may impose and recover damages at the following rates, not more than the amount of contribution payable for default or delay in the payment of such contribution. Duration Rate Less than 2 months 5% 2 to 4 months 10% 4 to 6 months 15% 6 months and above 25% Under Section 85 (a) to (g), Criminal and Civil Prosecution will be initiated which might attract fines and imprisonment up to 3 years maximum. Documents for ESIC Registration: Here is the list of essential documents needed for ESIC Registration: • A registration certificate obtained either under the: a) Shops and Establishment Act b) Factories Act • Registration Certificate in case of Company and Partnership deed in case of a Partnership • MOM and AOA of the Company • Employees list that working in the Establishment • Employees Compensation Details • PAN Card of the Business Entity including Employees PAN Card • A Cancelled Cheque of the Company’s Bank Account • List of Company’s Directors & Shareholders • Employees Attendance Register Procedure for ESI Registration: After collecting all the above-mentioned documents the following procedure is to be followed for the ESI registration: • Employers Registration Form (Form No – 1) shall be downloaded and filled. • After downloading the form, it must be filled with the help of the above-stated documents and shall be submitted on the ESIC portal. Compliances After ESIC Registration: The establishment needs to comply with the following after registering under the ESIC: • Maintaining the attendance register. • Maintaining a complete register of wages for workers. • Inspection book. • Monthly return and challan within 15th of the succeeding month. • Maintaining a register that records any accidents that happened on the premises. Filing of ESI returns: ESI Returns shall be filed two times in a year after its registration. Bi-Annual Returns (Form 5) as, I. April to September, II. October to March. Documents For ESI Returns : • Attendance Register of the Employees • Wages Register • Register of Form 6 • Any Accidents Registered on the Business Premises • Monthly Returns • Monthly Challans. ## There may be complex things that occur during the registration process which is a time-consuming and lengthy process. The legal language of these forms is complex in nature. The government Portal and its functionality are in itself quite challenging. The support of professionals and experts can save your precious business time. Our team of LAW COMPLIANCES, having expertise in all such kinds of matters, will resolve all problems pertaining to registration & compliances and will save your precious time and Money.  Working Process: >Choose your Plan and Pay Securely. > Upload required document > An expert will be assigned to you for the procedure of submission of the application. > Our Expert will complete the process required for your work along with the necessary assistance over a call during business hours. BASIC PLAN: Assistance in ESI Registration. ESI Registration for less than 20 employees, Service Fees: 6999/- excluding government Fees. STANDARD PLAN: Assistance in ESI Registration. ESI Registration for up to 40 employees, Service Fees: 13999/- excluding government Fees. ACE PLAN: Assistance in ESI Registration. ESI Registration for more than 40 employees, Service Fees: 20999/- excluding government Fees. Law Compliances can help you in obtaining ESI Registration in 12-15 working days.** ** Time taken for Incorporation/ Registration will depend on the submission of the relevant documents by the client and also approval from the CONCERNED Government authorities. FREQUENTLY ASKED QUESTIONS (FAQ): Is it mandatory for employers to register under the ESI? Yes, this is a mandatory requirement for every employer who comes under this act to register their unit/Factory/ Establishment. What are the compliance requirements? Every employer who is covered under this act is required to comply with various compliances like the deposit of monthly contribution, to file the half-yearly return, and report to the ESIC authorities if there are any changes in the business activity, the address, ownership, and the management, the maintenance of registers and records, etc. Are the benefits grants to the insured employees are transferable? No, the right to receive any benefits under this act is not transferable. If wages of an employee exceed Rs.15,000/- in a month, won’t he be covered and the deduction of the contribution from his wages be stopped? If an employee’s wages (this excluding the remuneration for overtime) exceeds the wage limit that is prescribed by the Central Government after the beginning of the contribution period, he continues to be an employee till the end of that contribution period and therefore, the contribution is to be deducted and paid on the total wages earned by him. What is the time limit for the payment of contribution? The contribution will be paid for the employees into a bank duly authorized by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period. Is there any interest in the delayed payment? An employer who does not contribute within the time limit shall be liable to pay simple interest at the rate of 12% per annum for each day of the default or delay in payment of contribution. What are the records that are to be maintained for the ESI scheme? In addition to the Muster roll, the wage record, and the books of Account that are maintained under other laws, the employer is required to maintain the following records for the ESI:- • The accident Register in Form-11 • An inspection book. • Immediate employer is also required to maintain the Employee’s Register for the • employees deployed to the principal employer. What is the scale of the Medical Benefit? The scale of the medical benefit includes the complete medical treatment from start to finish. What are the benefits admissible to dependents? The dependents are entitled to full medical care as and when needed, to artificial limbs, artificial appliances, etc. as a part of the medical treatment. The medical benefits are also admissible to dependents during the period the employee is claiming an unemployment allowance. In case of his death during this period, his family will continue to receive the medical benefit until the completion of those twelve months. The reimbursement of the expenditure incurred on the funeral of the deceased employee. In case of death of an insured employee due to an employment injury, the widow, widowed mother, and children are entitled to the Dependants’ benefit. All benefits due to the insured employee at the time of death are paid to the nominee. ***