Navigating PF and ESI Setup for a Growing Business: Do I Need Separate Accounts for Each State?

I have recently joined a private company in Chennai as an HR professional. We are engaged in the trading business, and my employer has tasked me with setting up ESI and PF accounts for the employees within the next 2 to 3 months. Upon researching online, I discovered that a minimum of 20 employees is required to establish a PF account for the company. Currently, we have not yet reached this threshold.

Business Expansion Plans

Furthermore, we are planning to expand our business to other parts of India, such as Bangalore, Hyderabad, Kochi, and other major cities across the country. This has led to some confusion for me. Should I initiate a single PF account under the company's name and use it for all states, or do I need to apply for separate accounts in each state? It may prove challenging for us to reach the 20-person requirement in every state, which adds to the complexity of the situation.

I would appreciate any guidance on the best approach to handle this scenario.

Thank you in advance.

Regards

PF Requirement for Companies in India

PF is common for the company irrespective of the location in India where the employees are situated. As soon as you have 20 or more employees, you need to apply for a PF number.

Thank you.

Thank you very much, Senior. So, I have to wait until my company increases the manpower to 20 or more, but what about ESI and its process? Please shed some light on this matter.

Thanks in advance,

Gnanaprakash