Navigating PF and ESIC for New FMCG Companies: What Happens If You Delay Registration?

Dear Folks,

What is the applicability and liability of PF and ESIC? We have a group company that we recently started in FMCG. Now the number of employees is more than 20 in that company. We have taken PT registration, but we have not taken PF and ESIC yet. What if we apply for the same after 6 months, getting an idea of the future of the company? What will be the effect on the employer?

Also, let me know what are the other ways to solve this issue.

Warm Regards,
Mamta

Hi, Ms. Mamta,

As you already have 20 employees, you need to enroll with ESI & EPF. If you delay, you may have to pay back wages with interest and penal charges. There are no excuses with ESI & EPF. It is advisable to initiate this process immediately.

When you reach 20 employees, you must apply for PF. It is mandatory for all startup companies. Otherwise, a penalty will be imposed.