Understanding ESIC and PF Obligations for Partnership and Proprietorship Firms: What Happens if You Miss Payments?

mukti-dhawan
Dear All, hope you are doing great! Can anyone help me with the following queries:

Mandatory Payment of ESIC & PF for Partnership and Proprietorship Firms

1) Is it mandatory to pay ESIC & PF if a company is registered under a Partnership firm? Also, for a Proprietorship company, is it mandatory to pay?

Notice from ESIC for Closed Partnership Firms

2) If a company was registered under a Partnership but did not pay PF or ESIC when it was operating and is now closed, can the owner of that company receive a notice from the ESIC office to pay ESIC?

Liability for PF & ESIC for Re-registered Proprietorship Firms

3) If a company was closed and the same name is registered under a Proprietorship, does the company need to pay PF & ESIC for the previously closed firm from 2015 to 2017?

Thank you.
peeru-kumawat
Yes, it's mandatory to pay all due challans. If you delay payment, there will be an increase in interest and damages.

You will receive an inspection notice, 7a, 7q, and 7b from the department.
Srinath Sai Ram
Dear Mukti,

First, check whether your establishment comes under the purview of relevant acts during the time it was operational. Your belief that labor laws are not applicable to proprietorship/partnership firms is not correct.

Please review and ensure compliance with the applicable laws to avoid any potential issues in the future.

Thank you.
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