Dear Trapti,
The formalities for ESI are that you must have a minimum of 20 employees receiving a salary less than Rs. 10,000. The maximum ceiling for ESI contribution is up to Rs. 10,000 gross per month only. Employees earning Rs. 10,001 or more will be exempted from ESI.
Employers should register the factory or establishment with the ESI Corporation within 15 days of the ESI Act becoming applicable. The registration declaration should be filled out in Form 01, along with a separate sheet containing the establishment's name and address, the number of employees, the nature of their duties, and the name, designation, and address of the manager overseeing them (for offices situated outside). Once the ESI regional office approves the application, they will assign a code number to the employer.
Only after receiving the code number can employers register their employees with ESI. Employees need to complete a declaration form (FORM 1), clearly indicating their gender (male or female). All declaration forms must be countersigned by the employer. Subsequently, a separate return of declarations in Form 3 should be prepared for male and female employees within 10 days of the declaration submission. Each employee will then be assigned a temporary identification number.
For PF formalities, the employee count must be at least 20 for registration with the PF department to be possible. Employers covered by the Employee Provident Fund Act are required to submit Form 5A (in duplicate) to the commissioner, detailing all branches, departments, owners, directors, partners, or any other individuals controlling the establishment's affairs within 15 days of the scheme's applicability. Upon receiving Form 5A, the commissioner will verify the details and, if satisfied, allocate an Establishment Code No.
I hope this clarifies everything for you.
Regards,
Amit Seth.