How to Handle Closing a 20-Year-Old PF Code with Unsettled Employee Accounts?

virendra_mertia@yahoo.co.in
Advice Needed on PF Code Management

Company/Factory A, where I am working, has its Head Office in another state where some commercial, marketing, and the principal employer cum Director are based. The company has two PF codes: one for factory employees in the state's regional EPFO where the factory is situated, and another for registered office employees in the regional EPFO of the office's state.

Some senior employees working in the factory have their PF deductions deposited under the Head Office's PF code. The PF code controlled by the Head Office has two authorized signatories and employer (i.e., Director) registration (through 5A) with the PF office as required.

As per management's decision, the Head Office is closed, and all its members are transferred to the factory. Their PF formalities are also transferred to the factory's controlled PF code, resulting in no members in the Head Office's PF code.

All of a sudden, the director/principal employer and all the authorized signatory persons with the Head Office PF code have also left the company, resulting in no registered person in the PF code of the Head Office. Now, the questions are:

1. The company wants to close this PF code even though it has a history of 20 years, meaning some former employees have not settled their PF settlements yet. Is it possible to close this PF code? If yes, what is the procedure? If no, how long do we have to maintain this code?

2. If we have to maintain this code, what is the minimum administrative charge that has to be deposited every month?

3. Is it required to nominate a new authorized signatory and principal employer from the company's (factory) employees for this code? If yes, what is the procedure? Does it require a resolution of a Board meeting to nominate a new authorized signatory, or is it sufficient to submit only a signatory card duly signed by the new Head of the company? Does the owner or principal employer have to be submitted again through 5A in this case?

Please suggest.

Regards,
Virendra Singh Mertia
Glidor
PF code surrender process

1) Surrender your trade license and close the bank account, then submit both records' copies to EPFO.

2) Until the month of the above submission, submit account 2 and 22 ₹75/- and ₹25/- challan.

3) When there is a sub-code, the principal cannot be treated as closed.

4) Change of signatory is possible by filing a fresh 5A, obtaining extracts of company director details, and inserting new details in 5A; they will become the new signatory.

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imran_ilu49
Dear sir,

I need your suggestion in the case where a contractor has passed away. Now, what is the further process to cancel PF code and other formalities? Please guide me.

I await your positive response.

Thanks
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