Is PF & ESI Compliance Required for Small Pvt. Ltd. Companies with Only 7 Employees?

Hi all, presently, I am working with a partner firm, and now they are converting it to a Private Limited (Pvt. Ltd.) company. They have entrusted me with all responsibilities related to this transition. I would like to confirm whether it is mandatory for all Pvt. Ltd. companies to comply with PF & ESI regulations or if there is a specific employee count criteria. Currently, only 7 people are employed in our company.

Thanks in advance.

If you can manage your company with only 7 employees or a maximum of 9 employees, then you need not comply with PF & ESI. However, if you increase the strength beyond that limit, then you must comply with statutory requirements.

ESI Coverage Exemption

Please check whether your area is exempted from ESI coverage. If so, then you do not need to cover ESI. You can make alternative arrangements instead of ESI if declared as an exempted area.

Guidance on PF Compliance

You can directly contact the PF Enforcement Officers of your region, who can guide you about PF compliance. If the strength is at a considerable level, then they will advise you regarding the formation of a PF Trust for your company or group of companies.

Regards.

To obtain the PF number and ESI for your company for business purposes, you can follow these steps:

1. PF Number: You can apply for a Provident Fund (PF) number through the Employees' Provident Fund Organization (EPFO) website. You will need to register your company and employees to generate the PF number.

2. ESI Number: To obtain the Employee State Insurance (ESI) number, you need to register your company with the ESI Corporation. This registration will provide you with the ESI number for your business.

Ensure that all necessary documentation and information are in order before applying for these numbers. The PF and ESI numbers are essential for compliance with labor laws and social security measures for your employees.