Employees' State Insurance

Employees' State Insurance (ESI) is a social security and health insurance scheme for Indian workers, managed by the Employees' State Insurance Corporation (ESIC). ESI registration is mandatory for certain categories of employers and employees. Here’s a step-by-step guide to registering for ESI in India:

Determine Eligibility

• Who Needs ESI:

• Employers: Entities with 10 or more employees (20 or more in certain states) and whose employees earn below a specified wage threshold.

• Employees: Those working in registered establishments and earning up to ₹21,000 per month (or ₹25,000 for employees with disabilities).

Gather Required Documents

• For Employers:

• Company Registration Details: Certificate of Incorporation, Partnership Deed, or other relevant documents.

• PAN Card: PAN of the company or business.

• Address Proof: Utility bill, rent agreement, or property documents.

• Bank Account Details: Bank statement or passbook.

• Employee Details: List of employees, including their details and salaries.

• For Employees:

• Identity Proof: Aadhaar card, voter ID, or passport.

• Address Proof: Utility bill, bank statement, or rent agreement.

Register Online

• Visit ESIC Portal: Go to the ESIC Online Registration portal.

• Create an Account: If you don’t already have an account, create one by providing basic details and registering with the portal.

• Login and Apply:

• Fill Registration Form: Complete the online ESI registration form by providing details about the company, employees, and contact information.

• Upload Documents: Upload scanned copies of the required documents.

• Submit Form: Review and submit the form online.

Physical Registration (if needed)

• Visit ESIC Office: In some cases, you may need to visit the nearest ESIC office with the completed form and documents.

• Submit Application: Submit the physical application form and documents at the ESIC regional office or branch office.

Verification Process

• Review: ESIC will review your application and documents. This may include a physical inspection of your establishment.

• Clarifications: If additional information or clarifications are needed, ESIC will contact you.

Receive ESI Registration Number

• Acknowledgment: After successful verification, you will receive an ESI Registration Number.

• ESI Code: This unique code is used for all future transactions with ESIC.

Compliance

• ESI Contribution: Begin deducting and depositing ESI contributions from employees' salaries as per the prescribed rates. The employer contributes 3.25% and the employee contributes 0.75% of the employee's wages.

• File Returns: Submit monthly or quarterly ESI returns online through the ESIC portal.

Maintain Records

• Employee Records: Maintain records of employee contributions, claims, and other related documents.

• Regular Updates: Update employee details and changes in the establishment as required.

Claim Benefits

• Employees: Employees can claim benefits such as medical care, maternity benefits, and disability benefits through the ESIC portal or local ESIC office.

Documents Required for ESI Registration:

1. Company Registration Details (Certificate of Incorporation, Partnership Deed).

2. PAN Card of the company.

3. Address Proof of the business.

4. Bank Account Details.

5. Employee Details.

Protax Advisors view:

ESI registration is crucial for businesses to comply with labor laws and provide social security benefits to employees. The process is streamlined with online options, making it accessible and efficient. Ensuring timely and accurate contributions is essential for compliance and to avoid penalties. For new businesses or those unfamiliar with the ESI process, consulting with an HR or legal expert can help navigate the registration and compliance requirements smoothly.