Stautory Obligations A Pvt Ltd - It Company - PDF Download

Hi everybody,

This forum definitely acts as a cushion for HR professionals in deep trouble. I am right now encountering the following. Please guide me on the same...

1. We are a software testing company.
2. Our workforce consists of about 30 employees.
3. This month we are registering it as a Pvt. Ltd. Company, so:
a. What are the basic legal norms we are supposed to adhere to?
b. Are any special registrations/affiliations required?
c. It is 1 year old, and now we are registering it. If we include the PF part, are we liable to pay the PF for employees even for the previous year?
d. Are there any standard formats for leave applications?
Any other basic stuff missing? Expect a huge downpour of guidance.

Regards,
Ramesh K
HR Executive
9880804822

Hi, regarding formalities of registering a private limited company, please refer to my earlier post at [link no longer exists - removed].

As your company is in the IT sector, it will fall under the Shops and Commercial Establishments Act.

Regarding the Provident Fund (PF) for the previous year, I am not sure because when an organization exceeds 20 employees, you are required to open a PF account. Once you approach the PF authorities, they will be able to guide you. You may only need to pay the employer's contribution for the past year.

The format for leave applications can be tailored according to your organization's needs. There is no standard format for this.

I hope this information is helpful.

Dear Ramesh,

The following are statutory obligations:

1. Registration under Shop & Commercial Establishment Act.

2. EPF & MP Act, 1952 comes into force once your employment strength is of more than 20 persons. For the allotment of the employer's code, you need to contact the office of the Regional Provident Fund Commissioner and supply the following:

a. Coverage Proforma with the undermentioned details:

1. Name & Address of Establishment.

2. Name & address of the owner or occupier or employer.

3. Nature of business being carried out by the establishment.

4. Date of start of business.

5. Date on which employment strength was more than 20.

6. List of employees as on date along with salary.

7. List of branches of the establishment.

8. List of director/partners with their residential addresses.

9. PAN number of the establishment.

This proforma is required to be signed by the employer with the official seal and to be submitted to the office of RPFC along with a DD of EPF amount due from the date when employment strength moved beyond 20 Nos.

Employees whose salary is less than Rs. 6,500.00 per month are eligible under the EPF scheme for contribution. For employees whose salary is more than Rs. 6,500.00, it is at the discretion of the management to deduct and deposit EPF contribution in respect of them. So you need not to pay EPF contribution in respect of employees whose salary is Rs. 6,500.00.

Further, if you have bifurcated the salary, then Basic Pay and Dearness Allowance, if any, are to be treated as salary for the purposes of the EPF scheme.

Contribution rates are 12% employee share and 12% employer share along with 1.61% as administrative charges of insurance and admin. charges on insurance. They are to be paid by the employer only.

3. ESI Act is applicable. Please check whether the ESI scheme is applicable in your area or not because this is an area-based statutory compliance. Again, for eligibility, the salary should be less than Rs. 7,500.00. Beyond Rs. 7,500.00, the employee is exempted from the purview of the scheme.

Applicability also starts from the day when employment strength moves beyond 20 employees. Information on Form No.01 is required to be submitted to the office of the Regional Director ESI for obtaining the employer's code.

The scheme is meant for providing medical and insurance benefits to employees covered under the scheme. Contribution rates are 1.75% of salary in respect of eligible employees to be deducted from the employee's salary, and 4.75% on the same salary is to be contributed by the employer.

4. Professional Tax registration with concerned authorities, if the same is applicable in your state.

I believe these are statutory compliances that require immediate attention. Bonus and gratuity acts are also applicable, but for that, an infancy period is there for implementation.

Regards,

Anil Anand

Dear Ramesh,

You can also check out https://www.citehr.com/5-vt3265.html?start=20 for the process of applying for a license under the Shop & Establishment Act and PF. The file is named Stat_compliance.doc. I hope it is helpful. Just replace the CRC word with "employer".

Regards, Anuradha

Re: PF Contributions to Different Branches

In case the company has multiple branches across India, what procedure should be followed?

Dear Ramesh,

I would like to introduce Star Labour Law Consultancy Services, a labor law consultancy firm engaged in the business of providing a wide range of services such as registration, maintenance of statutory records, and consultation to various corporate clients. The firm was started by a professional who has spent 10 years in the HR departments of various industries such as chemicals, FMCG, banking, and automobiles and has the professional degree and experience to support in the employee welfare function.

Every small to large organization in India is liable to comply with various mandatory central as well as state-level statutory enactments with respect to labor laws. We, at Star Labour Law Consultancy Services, provide you with professional, distinctive, and wholehearted support in managing your labor law-related work in a better and organized manner.

We provide full end-to-end services in the following areas:

We would request you to spare some time and give us an opportunity to explain our capabilities and areas of work in a better way. You are welcome to contact the undersigned at 9819991695.

Thanks

Best Regards,

Neelkandan
Chief Consultant

Well, please get in touch with us as we have been in this field for more than 8 years.

For further details, we request and appreciate you to get in touch at [Login to view] or 9870006433/91-222-27666136/09833366642. We are running a law firm by the name "LJ & Associates" and it is headed by me. I myself have legal experience in courts and corporates of more than 8 years and during these years have completed my B Com, LLB, LLM, MBL, MBA, CS Inter.

Please find attached my profile for any further issues and I will be happy to help you out.

Thanks & Regards

Lalit K Jain