What is ESI Registration?

Employees' State Insurance (ESI) is a social security scheme under the Employees' State Insurance Act, 1948, providing medical, monetary, and other benefits to employees. Managed by the Employees' State Insurance Corporation (ESIC), this scheme ensures workers are protected against financial distress arising from sickness, maternity, disability, or death due to employment injuries.

Who Needs ESI Registration?

• Employee Count: Employs 10 or more persons (20 in some states).
• Wage Limit: Employees earning up to ₹21,000 per month (₹25,000 for persons with disabilities).
• Applicable Entities: Factories, shops, hotels, restaurants, cinemas, road transport businesses, educational institutions, and medical institutions.

Note: The threshold varies by state; for instance, in Karnataka, the limit is 10 employees.

Documents Required for ESI Registration

• Certificate: Under the Shops and Establishment Act or Factories Act.
• PAN Card: Of the business entity.
• Bank Account Details: Cancelled cheque or bank statement.
• Address Proof: Utility bills or rental agreement.
• Employee Details: List of employees with their salary structure.
• Digital Signature Certificate (DSC): Of the employer.

Ensure all documents are clear and legible to avoid delays in processing.

ESI Registration Process

1. Visit the ESIC Portal: Navigate to the ESIC official website.
2. Sign Up: Click on 'Sign Up' under the 'Employer Login' section and provide the necessary details.
3. Login: Use the credentials received via email to log in.
4. Fill Employer Registration Form (Form-1): Provide establishment details, employee information, and other required data.
5. Upload Documents: Attach the necessary documents as specified above.
6. Submit Application: Review all information and submit the application.
7. Payment of Advance Contribution: Pay six months of advance contributions through the online portal.
8. Receive Registration Letter (C-11): Upon successful verification, the ESIC will issue a Registration Letter (C-11) containing the establishment's unique 17-digit registration number.

The registration process typically takes 7-15 working days, depending on the completeness of the application and the response from ESIC authorities.

Contribution Rates

• Employer Contribution: 3.25% of the employee's wages.
• Employee Contribution: 0.75% of their wages.
• Employees earning less than ₹176 per day are exempt from contributing.

Benefits of ESI Registration

• Medical Benefits: Full medical care for employees and their families.
• Sickness Benefits: 70% of wages during certified sickness for up to 91 days annually.
• Maternity Benefits: Full wages for 26 weeks during maternity leave.
• Disability Benefits: 90% of wages in case of temporary or permanent disability.
• Dependents' Benefits: Monthly payments to dependents of deceased employees.
• Funeral Expenses: ₹15,000 provided to the dependents for funeral costs.

These benefits ensure social security and financial stability for employees and their families.

Post-Registration Compliance

• Maintain Registers: Attendance, wages, and accident registers.
• Monthly Contributions: Deposit ESI contributions by the 15th of the following month.
• Filing Returns: Submit half-yearly returns in Form 5.
• Display ESI Information: At conspicuous places within the premises.

Non-compliance can lead to penalties, including interest at 12% per annum and damages up to 25% of the contribution amount.

Why Choose CACSFinacc for Your ESI Registration?

• Expert Assistance: Our team ensures accurate and timely ESI registration and compliance.
• End-to-End Support: From documentation to obtaining the ESI certificate, we handle it all.
• Transparent Pricing: No hidden charges; clear breakdown of all costs involved.
• Timely Delivery: We prioritize prompt processing to get your business compliant swiftly.