Skip to content

How to Apply for ESIC Registration in India – Complete Guide

ESIC, which stands for Employees’ State Insurance Corporation. It is a social security scheme established by the Indian government to provide medical and cash benefits to employees and their dependents in case of sickness, maternity, disability, or death due to employment-related injuries or diseases. ESIC registration is mandatory for certain entities under the Employees’ State Insurance Act, of 1948, if they meet certain eligibility criteria.

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. Entrepreneurs can have ESIC registration online through a simple process.

ESIC Definition

ESIC registration is the process through which employers register themselves and their eligible employees with the Employees’ State Insurance Corporation. The registered employees avail of various benefits provided under the ESIC scheme.

ESIC Registration Process

Find below the steps of the ESIC registration process in India:

⇒ Eligibility Check

Employers must first determine if they meet the eligibility criteria for ESIC registration based on factors such as the number of employees and the nature of their business.

⇒ Online Registration

Eligible employers can apply for ESIC registration online through the official ESIC portal by filling out the required application form and providing relevant details such as business information, employee details, bank account details, etc.

⇒ Document Submission

Along with the application form, employers need to submit supporting documents such as a registration certificate, PAN card, identity proof, address proof, bank statement, list of employees, etc.

⇒ Verification and Approval

Once the application is submitted, ESIC authorities verify the information provided and conduct inspections, if necessary. Upon successful verification, the ESIC registration certificate is issued to the employer.

⇒ Contribution Payment

Employers are required to make monthly contributions towards the ESIC scheme based on the wages of their employees. Contributions are made both by the employer and the employee and are deposited online through the ESIC portal.

Read: Udyog Aadhaar MSME Free Registration

ESIC Benefits

Some of the leading ESIC benefits are listed below:

⇒ Medical Benefits

ESIC provides comprehensive medical care to insured employees and their dependents through a network of dispensaries, hospitals, and clinics.

⇒ Sickness Benefit

Insured employees are entitled to receive cash benefits in case of temporary disablement due to sickness or injury, provided they meet certain eligibility criteria.

⇒ Maternity Benefit

Female employees are entitled to receive maternity benefits for a certain period before and after childbirth, including paid leave and medical expenses.

⇒ Disability Benefit

In case of permanent or temporary disablement due to employment-related injuries, employees are entitled to receive cash benefits.

⇒ Dependent’s Benefit

In case of the insured employee’s death, dependents are entitled to receive monthly payments as a dependent’s benefit.

ESIC Registration Documents Required

  • Registration Certificate of the Establishment under the Shops and Establishment Act or Factories Act,
  • PAN Card of the Establishment
  • Identity Proof of the Proprietor/Partners/Directors
  • Address Proof of the Establishment
  • Bank Account Details
  • List of Employees
  • Memorandum and Articles of Association (in the case of companies)
  • Any other documents as required by ESIC authorities

ESIC registration is essential for employers to ensure compliance with labour laws and provide social security benefits to their employees. By registering with ESIC, employers contribute to the welfare of their workforce and help create a healthier and more secure working environment.

Frequently Asked Questions

Who needs to register for ESIC?

  • Employers with 10 or more employees (in some states, the threshold may vary).
  • Certain categories of establishments, such as factories, shops, hotels, restaurants, cinemas, etc.
  • Employees earning wages up to Rs. 21,000 per month are eligible for ESIC benefits.

What is the contribution rate for ESIC?

Employers contribute 4.75% of the wages, while employees contribute 1.75% of their wages towards ESIC.

Is ESIC mandatory for all businesses?

No, ESIC registration is mandatory only for certain categories of establishments with 10 or more employees (in some states, the threshold may vary).

What is the penalty for non-compliance with ESIC registration?

Non-compliance with ESIC registration can result in penalties, fines, and legal action against the employer.

Can an employer register for ESIC voluntarily?

Yes, an employer with fewer than 10 employees may voluntarily register for ESIC to avail of its benefits.

Can employees opt out of ESIC?

No, employees cannot opt out of ESIC coverage as it is a mandatory social security scheme.

How long does it take to obtain ESIC registration?

The processing time for ESIC registration may vary depending on the completeness of the application and verification process by ESIC authorities. Typically, it takes a few weeks to obtain ESIC registration.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.