Navigating EPF and ESI Registration: What Are Our Obligations as a Sourcing Company?

Ours is a sourcing company. We outsource skilled and unskilled employees to manufacturing units. We have more than 100 employees in our payroll outsourced to companies.

Following are the queries:

1) Is it necessary for my firm to go for EPF and ESI registration?
2) Does the manufacturing unit, which is outsourcing for us, have to get registered under EPF and ESI?
3) Is there any method to avoid registration?

Kindly advise on the above, please.

Thanks and Regards,
Pravin

How can we deduct employee EPF and ESI? I request you to please provide the actual formula. Please help.

Regards,
MoolChand

Mr. Pravin, as the employees are under your company's payroll, you are liable to register under the P.F. Act, ESIC Act, P.T. Act, and M.L.W.F. Act. Once registered under the above acts, you will receive the respective codes, and all statutory deductions should take place; otherwise, you would be in default of payment to various acts, leading to potential problems for your organization.

Thank you and regards,
Ravikumar S.
9892028625