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Step by Step procedure to Register your business in(ESI) Employees’ State Insurance Act, 1948

How to Register Your Business for ESI in India(www.startupscratch.com) by startupscratch on Scribd

 

 

What is ESI?

It is Social Security to provide certain benefits to the employees in the organized sector in case of sickness, maternity and employment injury.

The Employees’ State Insurance Act, 1948 provides an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependants.

 

Applicability:

Any business employing more than 10 people shall be required to mandatorily procure the registration under the ESI Act:

  • Factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
  • Shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 10/20 or more persons.
  • Private Medical and Educational Institutions employing 10/20 or more persons in certain States.

The existing wage-limit for coverage under the Act, is Rs.15,000/- per month.          

It is not sufficient that 20 persons are employed in the shop. They should be employee as per Section 2(9) of the Act, getting the wages prescribed therein.

Benefits for Employee:

  1. Medical Benefit
  2. Sickness Benefit
  3. Maternity Benefit
  4. Disablement Benefit
  5. Dependant Benefit
  6. Other Benefit :
  7. Funeral Expenses
  8. Confinement Expenses

 

Prerequisites:-

Before applying for registration, applicant needs to obtain following documents:

  • Registration Certificate or License issued under Shops and Establishment Act or Factories Act, if available.
  • Memorandum and Articles of Association or Partnership Deed or Trust Deed, depending upon the constitution of the ownership of the establishment.
  • Certificate of commencement of production and/or Registration No. of CST/ST, if available.

Registration of Factories and Establishment under this Act:

 

Statutory responsibility under Section 2A of the Act read with Regulation 10-B lays down that every factory or establishment to which this Act applies shall be registered within such time (i.e. 15 days) from the date of its applicability of them and in such manner as may be specified in the regulations made in this behalf.

 

Procedure of Registration

 

The factory or Establishment to which the Act applies            to be registered by submitting an Employer’s Registration Form (Form-01) to the Concerned Regional office and obtain an identification number called the Code Number (Section 2(A) read with Regulation 10-B)

Documents to be submitted along with the Employer’s Registration Form (Essential Documents):

  • Documents relating to the constitution of the Factory/Firm/Establishment
  • Evidence in support of the date of commencement of production/business.
  • List of partners/Directors with their addresses
  • Copy of PAN card
  • Address proof like Passport/Voter Identity Card
  • Month wise employment position etc.

 

 

 

 

How to Go for Registration:

 

  1. Login to esic.in
  2. Click on ‘Sign Up’
  3. Fill the Company name, Principal Employer Name, State, Regions, E-mail and Phone No.
  4. Submit the same after filing it.
  5. Now you will get User name and Password on your Registered e-mail ID.
  6. Again login to esic.in with the login credential send through email
  7. Click on the ‘New Employer Registration’
  8. Select type of Unit & click on submit
  9. Fill the Form (Name of unit, Complete Postal Address of Factory/Establishment, District, Pin Code, Email address, Police Station
  10. Select whether the building/premises of Factory/Establishment is owned/hired
  11. Click next to proceed, reset to re-enter the details, cancel to exit & save to save the data
  12. Enter Bank Account details, nature of Business & Category, PAN etc.
  13. Enter date of commencement of Factory, License details(if any)
  14. Select constitution of ownership, details of owners
  15. Click on Sr. No 16 to enter details on the number of employees working
  16. Enter total number of employees, number of employees earning less than Rs. 15000
  17. Enter date when first 10/20 employees were employed
  18. Click on ‘Employee Declaration Form’
  19. Select ‘Yes’, if IP already registered & enter IP number & date of joining. ‘NO’, if IP is not registered
  20. Enter name of IP & Name of IP’s Father, Address, Date of Birth, Gender & Marital Status
  21. Enter Permanent address, date of joining, nominee details & family details
  22. Check the declaration and submit
  23. After successfully entering details of minimum 10 (for Factory) / 20 (for Establishment) IPs click on close
  24. After successfully submission ESIC with 17 digit code is generated.

 

 

 

 

 

Offences and Penalties:

 

  1. Punishment for False Statement – punishable with imprisonment and Rs. 2000 or with Both.
  2. Punishment for failure to pay contributions – punishable with imprisonment up to 3 years.
  3. Punishment for other contravention – punishable with imprisonment up to 1 year or with fine up to Rs. 4000 or with both
  4. Power to recover damages – in case employer fails to pay the amount of contribution then Corporation may recover from the employer by way of penalty

Power of Court to make

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