ESI

What Is ESIC ?

  ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which falls under the jurisdiction of the Ministry of Labor & Employment. This scheme is designed to provide the socio-economic protection to employees working in a company. Medical benefits, sickness benefit, maternity benefit and various other benefits to the employees and their family are covered under this scheme. The scheme also extends the financial assistance and medical care to the employees along with their family member insured under ESI Act.

Applicability Of Registration

  Any non-seasonal factory and company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC. Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employer needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.

Entities Covered Under ESIC

  As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

• Shops
• Restaurants or Hotels only engaged in sales.
• Cinemas
• Road Motor Transport Establishments
• Newspaper establishments (which is not covered under the factory act)
• Private Educational Institutions

  Documents Required for ESIC 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 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