Is There Really a 5-Year EPF Registration Exemption for New Businesses? Seeking Clarity

Respected all,

I was told by someone that there was a provision under the EPF & MP Act, 1952, which exempts newly established establishments for the first 5 years from taking registration under the EPF & MP Act, 1952. During this period, the establishment will be treated as a non-coverable establishment and will not be liable for contributions towards EPF in respect of its employees, even if the establishment has more than 20 employees or recruits any existing member. I was unaware of any such provision and opposed that concern.

However, the point stuck in my mind, and I tried to find that provision but failed to do so. Can anyone shed some light on this point?

Thanks in advance.

To all establishments which are factories registered under the Factories Act, or any establishments covered under the Shops and Establishment Act, when 20 or more coverable employees are employed on any day, the Provident Fund Act becomes applicable.