What happens if the employer does not provide PF/ESIC and the empolyee strength is more than twenty?

ajit-vyawahare
A friend of mine is recently joined as a HR in startup company.
The company is into insurance sector.
Recently, the employee strength has reached to more than twenty.
But, no PF/ESIC registration has been done.
What can happen regarding Compliance?
nathrao
If the Labour department comes to know ,the company will be penalised.
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