I am running a small software services company with about 15 people. Soon, we will be growing to over 20 employees, and we need to go for EPF registration. I am considering the following options:
Option 1: Go now for EPF registration as a voluntary contribution (as everyone in my company is ready to contribute). Then add new people as and when they join.
Option 2: Wait until the employee strength reaches 20 and then go for EPF registration.
Experts, please provide your valuable guidance on which option to choose. Also, if I choose option 1 and we grow to more than 20 people at a later date, what do I need to do?
Appreciate your help.
From India, Mumbai
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2Option 1: Go now for EPF registration as a voluntary contribution (as everyone in my company is ready to contribute). Then add new people as and when they join.
Option 2: Wait until the employee strength reaches 20 and then go for EPF registration.
Experts, please provide your valuable guidance on which option to choose. Also, if I choose option 1 and we grow to more than 20 people at a later date, what do I need to do?
Appreciate your help.
From India, Mumbai
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Hi,
Option 2 is better. Why do you want to increase your costs by opting for option one?
Once you get the PF code, whether voluntarily or statutorily, the PF rules are the same for both conditions. All the penal provisions are the same for non-compliance after obtaining the code.
Thanks & Regards,
Sanjeev Kumar Baliyan
Advocate & Consultant
Email: sanjeev.baliyan@clairvoyants.co.in
Mobile: 9971589511
Clairvoyants (http://www.clairvoyants.co.in)
From India, Pune
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Option 2 is better. Why do you want to increase your costs by opting for option one?
Once you get the PF code, whether voluntarily or statutorily, the PF rules are the same for both conditions. All the penal provisions are the same for non-compliance after obtaining the code.
Thanks & Regards,
Sanjeev Kumar Baliyan
Advocate & Consultant
Email: sanjeev.baliyan@clairvoyants.co.in
Mobile: 9971589511
Clairvoyants (http://www.clairvoyants.co.in)
From India, Pune
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Hi Sanjeev Ji,
Thank you for your response. I prefer option 1 despite the additional cost because if I add 5 to 10 people in a short period, I am afraid that I may be non-compliant for some period and attract penalties. Therefore, I want to be safe from that standpoint.
Thank you,
Srinivas
From India, Mumbai
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Thank you for your response. I prefer option 1 despite the additional cost because if I add 5 to 10 people in a short period, I am afraid that I may be non-compliant for some period and attract penalties. Therefore, I want to be safe from that standpoint.
Thank you,
Srinivas
From India, Mumbai
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Dear Mr. Srinivas,
You and your employees are willing to be covered under EPF. Currently, you have an employment strength of 15 and are likely to increase it beyond 20 employees due to expansion plans. In these circumstances, I feel it is better to opt for coverage. Once you are covered, there is no difference in compliance under the Act.
From India, Bangalore
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You and your employees are willing to be covered under EPF. Currently, you have an employment strength of 15 and are likely to increase it beyond 20 employees due to expansion plans. In these circumstances, I feel it is better to opt for coverage. Once you are covered, there is no difference in compliance under the Act.
From India, Bangalore
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EPF registration Procedure.pdf