Navigating ESI & PF Codes After Converting Proprietorship to Private Limited: What Should We Do?

Dear everyone,

We have just converted our proprietorship business into a Private Limited company. Now, we have two ESI & PF codes for each—the proprietorship and the Private Limited entity. We want to retain both of them. Our plan is to convert all our existing employees from the proprietorship code to the Private Limited code. However, we are unsure about what to do with our proprietorship code after this transition. We do not wish to surrender it as we may engage in other business activities under the proprietorship name in the future.

Could you please advise on the minimum amount we are required to pay for PF & ESI monthly returns and the process for making these payments?

Thank you.

Your point is not clear - Is there a new company formed or converted into a Pvt. Ltd.? If there is a change in the constitution, then you should not have gone in for new ESIC & EPF codes, but should have submitted a letter informing them about the change in constitution along with supporting documents.

Dear Prashant Sir,

Please note that establishments having no PF members have to remit Rs75/- towards A/C #2 every month. Under ESI, file nil half-yearly return manually.

Dear All,

Greetings. Please confirm the procedure for the conversion of ESI and PF from a sole proprietorship to a private limited company.

1) We have had ESI and PF under proprietorship from 2017 until the present, and we are using it on a monthly basis.

2) Upon applying for a new private limited company name with the same owner through the MCA portal, we received ESI and PF codes. Kindly confirm how to close the existing accounts.

Thank you.

Nowadays, by default, ESI and EPF codes are generated automatically from the MCA Portal. I doubt whether there is any provision to club both together, but you can still support the transfer of all individual EPFs from old to new accounts and surrender the old EPF/ESI account if necessary.