PF ESI Registration Process in Chennai

 

    

PF ESI Registration Process:

 The Employees’ Provident Fund (EPF) is a retirement savings scheme regulated by the Employees Provident Fund Organization (EPFO) under the Ministry of Labor and Employment, Government of India. Both employers and employees contribute towards the fund, which ensures financial stability for employees’ post-retirement.

Key Features of PF:

• Employee contribution: 12% of basic wages + dearness allowance.
• Employer contribution: 12% (8.33% goes to Employee Pension Scheme and 3.67% to EPF).
• Eligibility: All employees earning up to ₹15,000/month are automatically eligible.
• Voluntary coverage: Establishments with less than 20 employees can also opt for voluntary PF registration

Employees State Insurance:

     The Employees’ State Insurance (ESI) scheme is a social security initiative managed by the Employees’ State Insurance Corporation (ESIC). It provides medical, sickness, maternity, disability, and dependent benefits to employees. 

Key Features of ESI:     

•   Employee contribution: 0.75% of wages
•    Employer contribution: 3.25% of wages.
•     Eligibility: Employees earning up to ₹21,000/month (₹25,000 for persons with disabilities).
•    Coverage: Establishments with 10 or more employees (20 in some states).

 

Registration – Applicability:

•   For employers, it is mandatory to register under PF and ESI once they cross the employee threshold.
• PF Registration Mandatory: For establishments employing 20 or more employees.
• ESI Registration Mandatory: For establishments with 10 or more employees (in some states, 20 employees).
• Voluntary Registration: Both PF and ESI registration can be done voluntarily by employers with fewer employees.

 

Benefits of PF and ESI Registration:

Benefits of PF:     

•       Provides financial security to employees after retirement
•       Tax benefits under Section 80C of the Income Tax Act.
•        Loan facility against PF balance.
•        Life insurance benefits under the Employees’ Deposit Linked
•        Insurance (EDLI) schemes.

 Benefits of ESI:

•      Full medical care to employees and their dependents   
•     Sickness benefits during certified sick leave.
•      Maternity benefits to women employees.           
•     Disability benefits in case of injury during employment
•      Dependents’ benefits in case of the death of an employee.

 

 Documents Required for PF Registration:

•      Registration Form 001 – Contains details like name, address, date of set up of the establishment, contact details etc.
•     List of employees with names, ages, designations, departments etc.
• Proof of incorporation – Copy of memorandum/articles of association, partnership deed, etc.
•    Certified copy of Deed, Memorandum and Articles of Association,  Partnership Deed,
•   Trust  Deed, Bye Laws etc. based on type of organization

 

Documents Required for ESI Registration:    

•    Registration Form 01 – Contains details like registration name, address   business activity,  bank details etc
•    Proof of address – Copy of rental agreement, electricity bill,   water bill, etc.
•   Proof of incorporation – Copy of memorandum/articles of   association,  partnership deed, etc.
•    List of employees and their dependents with Form 3, 3A
•   Resolution by Board of Directors for obtaining ESI registration.

 

  Step-by-Step PF Registration Process:

•         Visit Schram Suvidha Portal – shramsuvidha.gov.in                                      
•         Create an account – Generate a Labor Identification Number (LIN)
•        Login and select Registration for EPFO-ESIC v1.1
•         Fill in establishment details (name, address, nature of business, etc.) 
•       Upload necessary documents (PAN, incorporation certificate, employee details, etc.) 
•           Submit the application online 
•          On approval, receive PF Establishment Code Number.

 

Step-by-Step ESI Registration Process:

•     Visit the Schram Suvidha Portal and login.
•      Select ESIC Registration and complete Form 1.
•      Provide establishment and employee details.
•      Upload required documents (PAN, address proof, employee records)
•      Submit the application.
•       On approval, receive a 17-digit ESIC Registration Code.
•      The employer will also receive a registration letter (C-11).

 

SPREE 2025 (ESI Amnesty Scheme):

      The ESIC launched SPREE 2025 (Scheme for Promoting Registration of Employers and Employees) from July 1 to December 31, 2025. This one-time initiative provides legal immunity to unregistered establishments, allowing them to register without penalties or backdated dues.

•       Employers registering under SPREE 2025 will not face inspections or demands for past contributions.
•     Registration can be done via ESIC Portal, Schram Suvidha Portal, or MCA Portal.
•        Effective from the date declared by the employer.

 

IMPORTANCE FOR EMPLOYERS IN PF AND ESI REGISTRATION: 

• Legal Obligation – Mandatory under Indian labor laws
•  Employee Welfare – Builds trust and loyalty among employee 
• Avoid Penalties – Prevents heavy fines and legal issues 
•  Business Credibility – Enhances company reputation and compliance     status.
•  Government Schemes Access – Employees get access to financial and    social security  schemes. 

 Our PF & ESI Services Include:

•    Registration of companies under EPFO & ESI         
•    Monthly PF & ESI return filing and challan generation
•     Employee UAN & Insurance number creation     
•     Handling inspections, audits, and queries from departments
•     Payroll integration for accurate deductions and reports
•     Support for transfers, withdrawals, and claims

 Ideal For:

•    SMEs, factories, and corporates
•    Startups with employee strength above compliance limit
•    Contractors and manpower supply agencies
  
•     HR and payroll teams needing expert guidance

Compliance After PF and ESI Registration:

Once registered, employers must ensure timely compliance

PF Compliance:

•    Monthly contribution: Deposit both employee and employer contributions by the 15th of the next month.
•    PF Returns: File monthly and annual returns in prescribed forms (Form 3A, 6A, etc.).
•   KYC of employees: Ensure employee Aadhaar, PAN, and bank account details are updated.

ESI Compliance:

•    Monthly contribution: Deposit contributions (employer + employee) by the 15th of the next month.
•    ESI Returns: File half-yearly returns with employee details and contributions.                                                         
•    Maintain records: Attendance registers, wage registers, accident records, etc.

Penalties for Non-Compliance:

Employers failing to register or comply with PF and ESI rules face strict penalties:

PF Penalties:

•      Late payment: 12% interest per annual     
•      Penalty for default: 5%–25% depending on the delay.

ESI Penalties:

• Late payment interest at 12% per annum.
• Prosecution and fines for repeated defaults.

Final Thought:

                   In 2025, compliance with PF and ESI registration is not just a legal necessity but also a vital step towards ensuring employee satisfaction and welfare. With the introduction of SPREE 2025, employers have a unique opportunity to register without penalties and bring their workforce under social security coverage.

By following the step-by-step registration process, preparing the necessary documents, and staying updated with compliance requirements, employers can safeguard their business from legal issues while contributing to the long-term financial security of their employees.