Starting HR from Scratch: How Do I Register Our Company for ESIC and What Are the Costs?

Dear All,

I am working in an Infra Development Company; we have 25 employees and we are regularly submitting the PF contributions. Before I joined the company, there was no HR function in this company. I am starting the HR function from scratch. I informed my director that we fall under the ESIC act as we have more than 20 employees, and among the 25, approximately 10-12 have gross salaries above 10,000.

Now, my director has instructed me to focus on ESIC. How do we get registered, and what documents are required for this? If we haven't enrolled in ESIC until now, are there any charges we have to pay for that? I don't have practical experience with ESIC. Kindly assist me with knowledge sharing.

Thank you.

Dear Harshal,

Your company does not fall under ESIC registration category as of now because the number of employees who are drawing a salary less than 10,000 is only 12. The number should be a minimum of 20 employees whose salary is less than 10,000, then only you can register for ESIC. Also, note your company cannot be covered voluntarily under ESIC.

For ESIC coverage, the following documents are needed:

1. You need to apply in Form 1 for coverage with necessary documents which are given below.
2. Memorandum of Association and Articles of Association (in case of a Public Limited Company).
3. Electricity Bill Copy.
4. Copy of the Agreement of the Office Premises (if Owned) or leave & license Agreement of Premises.
5. Copy of the 1st Sale Bill.
6. Copy of VAT, CST, Service Tax Registration Certificate.
7. Salary & Wage Register and Attendance Register Since Beginning.
8. Month-wise strength of the number of employees since the beginning.
9. List of Director/Partners/Owners alongside their Residential Address.
10. Pan Card Copy of the Company.
11. Shop & Establishment License.
12. Balance sheet/P & L Accounts of the Company.
13. Name of Bankers, Address of the Bank, and Name of the Person responsible for financial Matters.

Once the number of employees drawing a salary less than 10,000 increases, then your company can be registered under ESIC, and you will be allotted an ESIC Code. You can start deducting Employee Contribution and Employer Contribution from the day the number of employees drawing a salary less than 10,000 reaches 20. Employee Contribution is 1.75% of the gross salary, and Employer Contribution is 4.75% of the gross salary. The due date for Employee Contribution & Employers Contribution is the 21st.

If you have any queries, please feel free to contact me.

Regards,

Sanjay Kumar Tyagi