Transitioning from Proprietorship to Pvt Co: Do We Need New PF & ESIC Registrations or Just Update Details?

A proprietorship firm has transferred its business to a private limited company. The proprietor continues as a Director in the Pvt co. All existing employees are transferred to the Pvt co.

New PF & ESIC Registrations

Whether new PF & ESIC registrations need to be obtained for the Pvt co or should the proprietorship's establishment details be updated by filing form 5A? Please help.

EPFO Updates on Establishment Details

EPFO provides updates of establishment details by way of Form 5A. Submit relevant documents pertaining to changes.

Thank you.

Differences Between Proprietorship and Private Limited Entities

Proprietorship and private limited are different entities with distinct statuses. Please inquire with the relevant Regional Office (RO) to determine if migration is permissible. Otherwise, a fresh registration must be obtained for the private limited entity, while the proprietorship registration needs to be surrendered. Subsequently, after transferring the employees to the new establishment, the total process remains the same across all departments, given that all registrations are PAN-based, including GST and professional tax.

Guidance from Regional Office and Legal Advisors

The Regional Office and the advocate who drafted the memorandum can provide better guidance in this context and explain the clauses related to migration.