Hi,
My company is having branches all over India. The registered office is in a Northern State. The provident fund is registered at Regd Office centrally for all branches.
We have made a joint venture and launched a new company recently. The new company is registered under companies act. The Regd Office of the new company is also in the same place. The board of directors also remain the same except inclusion of one more director. By Virtue of agreement all the business contracts have been transferred to the new company. The branches and premises of the new company remaining the same. All the employees who are currently in service resigned the job and joined the new company with continuity of service. Though the Regd Office is at some other place all the administration activities, Finance, Accounts etc are handled at Chennai.
We applied for PF registration for the new company at Chennai. But the PF department has rejected our application stating that it cannot be considered as new company and it is only a change in constitution and change in ownership. We told them that it is new company for which they refused and directed us to obtain a NO OBJECTION from the RPFC of the previous company. They also informed that the new company has to be treated as branch of the previous company and we have to apply as Section 2A of the PF ACt.
Kindly guide me whether it is necessary to obtain NO OBJECTION letter and should the new company has to be treated as Branch as per section 2A. How should I proceed for obtaining the registration at Chennai.
Regards
erv
From India, Madras
My company is having branches all over India. The registered office is in a Northern State. The provident fund is registered at Regd Office centrally for all branches.
We have made a joint venture and launched a new company recently. The new company is registered under companies act. The Regd Office of the new company is also in the same place. The board of directors also remain the same except inclusion of one more director. By Virtue of agreement all the business contracts have been transferred to the new company. The branches and premises of the new company remaining the same. All the employees who are currently in service resigned the job and joined the new company with continuity of service. Though the Regd Office is at some other place all the administration activities, Finance, Accounts etc are handled at Chennai.
We applied for PF registration for the new company at Chennai. But the PF department has rejected our application stating that it cannot be considered as new company and it is only a change in constitution and change in ownership. We told them that it is new company for which they refused and directed us to obtain a NO OBJECTION from the RPFC of the previous company. They also informed that the new company has to be treated as branch of the previous company and we have to apply as Section 2A of the PF ACt.
Kindly guide me whether it is necessary to obtain NO OBJECTION letter and should the new company has to be treated as Branch as per section 2A. How should I proceed for obtaining the registration at Chennai.
Regards
erv
From India, Madras
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Dear ....
I am too going through same issue, We have submitted No Objection letter from previous Company.
After the same we have got registered under PF. Now problem is that, PF Authorities are asking us that we will have to pay the PF for New company employees from the date of formation of PREVIOUS COMPANY.
So Employer has to pay the PF for those employees shifted members from PREVIOUS -NEW from date of formation of previous company, it means we will have to pay for 2 times PF for concerned member from backdates.
We are really in big trouble now, I am not getting what to do, Could any body please tell to me whether it is Right??
As sec 2A at PF defines -
Establishment to include all departments and branches
For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situated in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.
IF BOTH ARE SISTER CONCERNS , AND WILL BE TREATED AS PART OF SAME ESTABLISHMENT THEN WHY WILL HAVE TO PAY FOR THEM FOR TWO TIMES...
Your guidance is necessary at the time....
Thanks & regards
Smita
From India, Pune
1I am too going through same issue, We have submitted No Objection letter from previous Company.
After the same we have got registered under PF. Now problem is that, PF Authorities are asking us that we will have to pay the PF for New company employees from the date of formation of PREVIOUS COMPANY.
So Employer has to pay the PF for those employees shifted members from PREVIOUS -NEW from date of formation of previous company, it means we will have to pay for 2 times PF for concerned member from backdates.
We are really in big trouble now, I am not getting what to do, Could any body please tell to me whether it is Right??
As sec 2A at PF defines -
Establishment to include all departments and branches
For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situated in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.
IF BOTH ARE SISTER CONCERNS , AND WILL BE TREATED AS PART OF SAME ESTABLISHMENT THEN WHY WILL HAVE TO PAY FOR THEM FOR TWO TIMES...
Your guidance is necessary at the time....
Thanks & regards
Smita
From India, Pune
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc