Can a Small Business with Fewer Than 10 Employees Register for ESIC? Seeking Advice on Options and Outcomes

One of my clients is running a machining, turning, and processing unit. His total employment strength is below 10 members. Now, the principal employer has asked to get/register with ESIC. My questions are:

1. Is my client eligible for registration even with fewer than 10 members?
2. If not, what is the alternative source?
3. What happens if the ESIC accepts our application for registration?

Thank you.

The implementation of the Employees' State Insurance Act in any factory or establishment is compulsory, and the employment of a minimum of 10 or more persons is required to obtain a Code Number. The coverage is not optional. However, concerning the immediate employer (contractor), compliance can be made using the code number allotted to the principal employer, provided that his unit, along with the employees of the contractor, is otherwise coverable under the said Act.