Transitioning from Partnership to Sole Proprietorship: How to Handle ESI and PF Remittances?

Hi, I am a sole proprietor of a firm providing manpower services and also a partner in another firm. I have ESI and PF registration in my name and am remitting the ESI of the proprietor firm under this number. On the other hand, the firm in which I am a partner has ESI registration in the company's name, and ESI remittances are being made. Now, the other partner of this firm wants to quit. If this happens, I will be the sole remaining partner. Will this company then become a proprietorship concern? If so, can I remit the ESI and PF contributions of that firm under my individual ESI and PF number? Can anyone please clarify this for me? Thank you.

Clarification on ESI and PF Contributions for Sole Proprietors and Partnerships

With reference to your query, as you are the sole proprietor of one concern and a partner in another firm, upon the termination of the partnership deed due to the exit of your partner, you will be considered the sole proprietor of the partnership firm. According to the provisions of the ESI Act, 1948, and EPF Act, 1952, you are required to deposit monthly contributions for all your concerns/firms separately. Consolidation in this regard will not be allowed as different ESI and PF Codes are assigned.

Thanks and Regards,

R.B. Yadav
Advocate