Confused About ESI and PF Registration Without Employees? Here's My Dilemma

Hi, we have opened an establishment. I’m done with all the registrations apart from ESI and PF. Currently, we do not have any employees. One of the auditors told me that, without 19 employees, the ESI and PF registration cannot be done, while another told me the opposite. I'm confused! Can anyone let me know whether it is possible to have just the registration done in the ESI and PF office without employees? (Once the employees are hired, we’ll start paying the ESI and PF amounts.)

I need to have these registrations since my future clients require them when I go for business. We are a security guard service provider, and when I approached clients, they asked me for ESI and PF registration numbers. Since I didn't have them, I was rejected. Please help. Thank you!

Once you have registered for PF/ESI, even if you do not have employees, you will have to file appropriate returns. So, it is a decision that you have to make after discussing with an experienced PF/ESI practitioner.

As a matter of fact, you can register, but it is of no use. You need to pay the minimum administrative charges every month, which is an unwanted expenditure.

You can inform or give a declaration to your client that after appointing the guards, the PF and ESI registration will be done, and the requisite data will be submitted.

Sir, the coverage of a factory/establishment under the ESI Act, 1948 is based on the actual engagement of the minimum number of persons as required under the said Act. Additionally, it is essential that the area where the unit is situated must be an implemented area under section 1(3) of the said Act. Under the said Act, a Code Number cannot be obtained in anticipation of the engagement/employment of the minimum number of persons as required in the future.

Since you do not have any employees, as stated by you, you cannot go for PF as well as ESI registration. What one of the auditors told you is correct. Unless you have 20 headcounts, you cannot register with EPF. However, you can opt for registration voluntarily when you have fewer than 20 headcounts, with consent from you and the majority of employees. Subject to certain criteria, the registration voluntarily is granted by CPFO.

For registration under ESI, if you are applying in Maharashtra, HP, or Assam, you should have a minimum of 20 coverable employees under the ESIS. In the rest of India, if you have 10 headcounts, you need to register your establishment under ESI. There is no provision for voluntary registration here.

You need to convince your prospective client that once you start with him with 20 or more employees, you will submit the PF and ESI registration numbers within a couple of days. Now, you can get those numbers immediately on application submitted online.

Whether it is mandatory for charitable and religious trusts to register under the Shop and Establishment Act before registering under the ESI and EPF Acts?

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Coverage Under the ESI Act

1. Sir, ESIC has its own system of identifying factories and other notified establishments, such as shops, for coverage, and it does not depend on coverage under any other Act. Though coverage under the Shop & Commercial Establishments Act is not a precondition, it can serve as evidence for coverage under the ESI Act, 1948, and the rules/regulations framed thereunder. If an establishment fails or faults in its coverage under any other statutory requirements, it does not mean that it should not be covered under the ESI Act.

Clarification on Coverage

2. In case of any doubt, and for more clarity regarding the coverage of your establishment, if desired, you can contact the appropriate ESIC authorities in your area.

EPF & MPs Act Coverage

3. I think a similar position may exist regarding coverage under the EPF & MPs Act, 1952.