What is EPF?
EPF stands for Employee Provident Fund is a scheme governed and regulated by a body named Employee’s Provident Fund Organization (EPFO) constituted under Employee’s Provident Funds & Miscellaneous Provisions, Act 1952.
EPFO is the largest social security organization with a large volume of financial transactions taking place. EPF is the benefits availed to the employee on their retirement in the form of Provident Fund.
Applicability of EPF Online Registration
EPF registration applies to the following establishments:
- Establishment employing 20 or more employees during any time in the previous year
- Factory engaged in any industry having 20 or more employees during any time of the year.
- Central Government, after giving two month's notice to the certain establishment for compulsory registration irrespective of their employees. Such an establishment shall get themselves registered immediately upon the receipt of the notice.
The procedure of Online EPF Registration
Following is the simplified process for EPF registration:
Apply online on the official website of EPFO https://www.epfindia.gov.in/ by selecting the option of “Establishment Registration”. Complete the details of employers such as the name of the establishment, address of the establishments, details of owner/employer, PAN of the employer, etc.
Verification through OTP
Once the online form is completed & upon submitting the form online, the applicant will receive OTP Pin on his registered email id and mobile number, which shall be verified to activate establishment login.
Once the employer registration is completed and verified, the applicant can log in with the credentials for completing the details of the Establishment. DSC Registration: After the registration of the establishment is completed, the applicant needs to register the DSC online by Selecting the "DSC/E-Sign" option from the drop-down menu. DSC is registered for authorized signatory on behalf of such establishment.
Once the registration is completed, the department allows the EPF registration certificate in form 5 containing the Unique Identification Number.
Update KYC of every employee
After the registration is completed and form 5 is allotted, the applicant shall update the KYC of every employee by uploading Aadhar, bank statement and other details for the generation of UAN number of its employee.
Entities willing to get themselves registered under EPF & ESI both, can now through common registration facility available under which entity can get the EPF Code number and ESI Code number by filling the single application.
Documents required for EPF Registration
Following documents are required for filing employer registration & establishment registration under EPF:
- Name of the employer
- PAN Card of the employer
- Id proof such as driving license/passport/voter-id
- Address proof of registered office such as electricity bill/rent agreement (in case premise is rented)/registry(for owned premise)
- In case the establishment is society, trust, LLP or company, copy of Certificate of Incorporation is needed
- Partnership deed, id proof & address proof of every partner if the establishment is partnership firm
- MOA & AOA if the applicant is a private or public company
- Details of employees for allotment of UAN number:
• Aadhar card
• Pan card
• Bank account details such as account number & IFSC Code
• Contact number & email id
• Date of birth as per Aadhar
• Designation of employees
Benefits of EPF Registration:
- The employer contributes some proportion to the EPF fund along with the employee. The employer also adds his contribution that is inclusive of the employee pension scheme (EPS)
- Provident fund acts as financial support at the time of retirement, illness, demise, disability or any similar risk occurred to the employee.
- PF account of an employee needs not to be closed in case the employee switches his job as the same can be carried forwarded.
- PF funds can be used by the employee for long term plan such as
EPF Registration UAN (Universal Account Number)
Once the establishment is registered in the EPFO portal, it shall updates the KYC documentation for its employees for the generation of Universal Account Number (UAN). Every employee can use its UAN number to claim PF fund, transfer of PF fund online to the bank account, etc. For the same, an employee must activate UAN through the following procedure:
- An employee can visit online for its UAN activation on the official website of EPFO https://unifiedportal-mem.epfindia.gov.in/memberinterface/
- Complete the details such as UAN, Member Id, Aadhar Number, PAN number, etc
- After that fill in the details such as name, address, contact details and complete the form by filling captcha on the screen
- After completing these details, the employee gets OTP PIN on his mobile number registered with UAN.
- Employee shall check the box “I Agree” and validate the OTP for activating UAN.
Once the establishment is registered with EPFO, it shall comply with certain mandatory provisions monthly/annually as prescribed under the act:
- Monthly return is filed online through the establishment login by uploading the ECR sheet.
- Return is filed online with the 15th of succeeding month for which the return is filed.
- ECR sheet can be downloaded through EPFO in the XML sheet that contains name & UAN of every employee registered with the establishment during the month for which return is filed.
- XML sheet shall be converted into a Comma-dilemma file for uploading the same for return filing.
- Complete the return filing by contributing online payment gateways.
Rate of contribution varies depending upon the number of an employee employed in establishment:
a) For establishment hiring employees 20 or above:
Employer and employee of such establishment shall contribute up to 12% of the employee’s salary (Basic wages + Dearness allowances)
b) For establishment hiring less than 20 employees:
Following establishment that shall contribute at the rate of 10% of basic wages of the employee in spite of 12%.
- An establishment having up to 10 employees and get voluntary registration under EPFO.
- Any establishment incurred loss during the previous year
- Other establishments such as Brick Factory, Jute Factory, Beedi making factory, etc.