Navigating PF and ESIC Requirements for Remote Sole Proprietorships: When Do They Apply?

Hi, our firm is a sole proprietorship engaged in recruitment, GST registered in Delhi, with 10 employees working remotely from home across India. Salaries range from a minimum of ₹16,500 to ₹35,000 per month. We do not have a physical office and are operating from home in Ahmedabad. The registered office address in Delhi is where my brother operates his own business under his company name.

Query:

1. At what number of employees do we need to enroll in ESIC and PF?

2. Is it necessary to have a physical office, and if so, at what number of employees?

Please provide guidance!

Labor Laws for Remote Employees

For coverage of labor laws, you do not need to have your employees sitting and working under one roof. Additionally, there is no separate law for a sole proprietorship firm. If you have 10 employees, your company should have ESI registration, and those employees whose salary is not more than Rs 21,000 should be registered under the ESI. Similarly, when your number of employees reaches 20, you should obtain PF registration. Depending on the number of employees, various other laws will become applicable to your establishment.