ESIC stands for ‘Employees State Insurance Corporation’. The Scheme is administered by a corporate autonomous body that has members representing the employers, employees, the Central Government, The State Government, Medical Professionals, and the Parliament. ESIC registration provides monetary and medical benefits to Employees in case of sickness, maternity, and employment injury and makes provisions for related matters.
ESIC registration is a statutory responsibility of the employers of the factory or any establishment under Section 2-A of the Act read with Regulation 10-B. In addition, it is mandatory according to the rules and regulations of the ESI Act 1948. However, entrepreneurs can have ESIC registration online through a simple process.
Is ESIC Registration Mandatory for Employers?
Any factory or business establishment having 10 or more 10 employees, irrespective of salary, have to register with ESIC.
Entrepreneurs must make ESI contributions for all employees having a salary of less than Rs.15,000 per month. Employees with less than Rs.15,000 monthly wages get health and sickness benefits through this statutory scheme.
In this scheme, the employer’s contribution is 4.75% and an employee must contribute 1.75% for ESI. An organization having all the employee’s monthly wages of over Rs.15,000, then the organization would have to file a NIL return. The following industries are required to obtain coverage under ESIC:
- Factories employ 10 or more persons irrespective of whether you use power in the process of manufacturing or not.
- Shops, hotels, restaurants, cinemas including preview theaters, road motor transport undertakings, and newspaper establishments employing 10/20 or more persons.
- Private Medical and Educational Institutions employ 10/20 or more persons in certain States.
Documents Required For ESIC Registration
- Registration Certificate or License issued under Shops and Establishment Act or Factories Act, if available.
- Memorandum and Articles of Association or Partnership Deed or Trust Deed, depending upon the constitution of the ownership of the establishment.
- Certificate of commencement of production and/or Registration No. of CST/ST, if available.
- Month-wise employment position, salary, etc.
- List of Partners or Directors
- PAN Card and Address Proof of the Factory/Firm/Establishment
- Evidence in support of the date of commencement of production /business
- Copy of bank statement
How to Get your Business ESIC Registered?
The factory or establishment can apply for registration by submitting an Employer’s Registration Form (Form-01). Then, the organization will get an identification number as the code number.
The code number is a 17-digit unique identification number. At the time of registration, the Employee is required to fill in Form – I and submit a family photo in duplicate to the employer. Additionally, employers must submit this document to the ESI Office.
The employee is then allotted an insurance number and issued a temporary identity card for availing medical benefits for him/herself and his/her family. Thereafter, a permanent identity card is issued, which can be used by the employee even after transferring jobs.
Companies under ESIC coverage must file the annual return. Additionally, they must show the changes if any during the preceding year. Furthermore, you must submit the return of contributions enclosing a copy of all ESI contributions paid once every six months.
Organizations under ESIC Registration must maintain the following records:
- Attendance Register
- Wages Register
- Form-6 Register
- Accident Register
- Inspection Book
- The file contains all monthly challans & returns submitted.
Entrepreneurs can get ESIC registration now online. Check http://www.esic.nic.in/ to learn more.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.