EPF

What Is EPF ?

  Employees Provident Fund (EPF) is a scheme under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the preview of employees Provident Fund Organization (EPFO). Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization.

Applicability of EPF Registration for Employers

  EPF registration is mandatory for all establishments –

• Which is a factory engaged in any industry having 20 or more persons, and
• to any other establishment employing 20 or more persons or class of such establishments which the central government may, by notification specify on this behalf.

  The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable. A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

  Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration.

  Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central Provident Fund (PF) Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.

  Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.

  The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.

Documents Required For EPF Registration

  For Proprietorships

• Name of the applicant
• PAN card of the applicant
• Driving license/voter ID/Passport and Aadhar of the proprietor
• Latest bank statement/telephone bill of the proprietor.
• Latest passport-size photograph of the proprietor
• Registered office address proof: The registered document of the title of the premises in the name of the proprietor OR The notarized copy of the rent/lease agreement in the name of the proprietor.

For Company/Partnership Firm/LLP

• Name of the company/partnership firm/LLP
• Incorporation Certificate in case of company/LLP
• Certificate of registration in case of partnership firm
• Partnership deed in case of LLP/partnership firm
• ID proof of directors in case of company
• ID proof of partners in case of LLP/partnership firm
• List of all directors with contact details in case of company
• List of all partners with address and contact details in case of LLP/partnership firm

For Society/Trust

• Certificate of incorporation of society/trust.
• MOA and Bye Laws of the society/trust
• ID proof of the president and all members of the society/trust
• Address and contact details of the president and all members of the society/trust
• PAN card of the society/trust

Common Documents for all Entities

• First sale invoice
• First purchase invoice of raw material and machinery
• Name and address of the banker
• GST registration certificate if registered under GST Act
• Employee register
• Register of salary and wages.
• Financial statement from day one of the business to till date
• Date of joining of employees, father’s name and date of birth

  Crossed cancelled cheque