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Pankaj Tyagi
| Updated: 01 Nov, 2020 | Category: ESI

Documentation Required and Process for ESI Registration

Documentation & Process for ESI Registration

Employee state insurance (ESI) scheme of India is a multifaceted welfare scheme for the employees working in the organized sector. The scheme was introduced by the government in the year 1952 with the aim to facilitate socio-economic protection to the employees in the event of adversity or crisis that occurs on the grounds of health and money. In this write up you will learn everything ESI registration.

Apart from providing financial backing, the ESI scheme also renders medical insurance to the employees under the ESI scheme. The insurance provides coverage to their family also. The major part of the scheme funding comes from the contribution made by the employee as well as an employer of the company.

ESI Registration

The employers seeking ESI registration can visit the online portal of the ESI and do the required to complete the process.

Note: Any Company having a workforce of more than ten employees and have a maximum salary threshold of Rs 15,000 has to compulsorily register itself with ESIC.

Documents Required for ESI registration 

To open an ESI account, employers need to furnish the basic documents which are mentioned below:- 

  • Registration certificate issued under Shops & Establishment Act or Factories Act*. 
  • Registration certification in case of an LLP, company, and partnership deed. 
  • Article of association and Memorandum of association*. 
  • List of all active manpower working in the company along with their details such as name, Guardian name, contact number, DOB, date of appointment, salary, address, nominee’s details, post, identification proof such as Aadhaar or PAN, bank account number, etc.  
  • Employees register where their attendance is recorded. 
  • PAN card of the company. 
  • Scanned copy of the GST registration license. 
  • A canceled cheque. 
  • Digital signature of the partner, director, or proprietor as the case may be. 
  • List of active directors working in the company.
  • List of the existing shareholders. 
  • Address proof of the core members such as a partner, proprietor, and directors as the case may be. 
  • Contact number and email id of the partner, proprietor, or director of the organization as the case may be

Read our article:ESI Eligibility, Advantages and Enrolment Procedure

Article of Association and Memorandum of Association

MoM and AoA are the basic statutory documents that contain granular details of the company regarding the rules and scope of operation. An MOA contains the objective and fundamental data of the company that help it to acquired an incorporation certificate from the MCA. Moreover, the Articles of Association, layouts the set of rules and regulations of the company, that governs the internal affairs. It’s important to note down both these play a vital role in acquiring different government-oriented licenses and registration. 

Factories Registration

Factory Registration in India is governed by the set of rules drafted in the Factories Act 1948[1]. Factories Act talks about the welfare of the employees in the workplace. It regulates the working stipules in the companies or factories and addresses the various issues related to the safety, health, and efficacy of the individuals providing its services at the workplace. 

Entities that seek ESI registration

  • Shops
  • Hotels or restaurants engaged in manufacturing as well as sales activities. 
  • Cinemas and road transport companies. 
  • Newspapers and the printing press.
  • Private educational institutions 
  • Medical institutions such as private hospitals, pathological labs, and nursing homes. 

ESI Scheme (Wage Limit) Eligibility Criteria

  • The employees, whose monthly salary doesn’t exceed 21,000 Rs are eligible for this scheme. 
  • To simply put, employees of establishments with more than ten people take a monthly salary of up to 21,000 Rs are eligible to receive the health benefits that cover under the ESI Act. 
  • Thus, if an employee’s wages lies within this wage bandwidth, deduction of their wages at a fixed percentage will be made as a contribution toward this scheme on a monthly basis. 
  • Moreover, there are employees who are not liable to make such a contribution to the ESI scheme from their wages paid to them by an employer. 
  • These also encompass workers whose daily wage is capped at Rs 137. However, such wages is backed by the employer’s contribution. 

Procedure for the Online Registration of the Employers

  • Go to the ESI official website and select the sign-up option to get started with the online registration process
  • The portal will land the user on the new window where the following field needs to fill with accurate information
  1. Company name 
  2. Principal Employer Name
  3. State
  4. Regions
  5. Email address
  6. Contact Number 
  • After filling the aforesaid field, click on the checkbox and tap on the submit button. 
  • The portal will then sent a confirmation mail on the registered mobile number and email ID of the applicant. The confirmation mail encloses the detail regarding the username and the password.
  • The applicant can use these credentials to get access to their account. 

Conclusion

Low wages and fewer onsite facilities make the factory’s employees more vulnerable to an unexpected crisis. Thanks to the ESIC scheme that gets them covered all the way. Scheme strikes the right balance between employee’s security and financial wellbeing. It provides all the necessary coverage that an employee needs to ensure a piece of mind.

Since it becomes mandatory for establishments having more than twenty employees, overlooking it could land the defaulter in a difficult situation. Thus, to avert such situations make sure to raise ESIC for employees as soon as possible. For an easy process and documentation, make sure to stay connect with CorpBiz’s helpdesk. The professionals at this platform are well-versed and have an in-depth understanding of the licensing requirement. They can help you to ease out the paperwork affairs and filing of an online application. 

Read our article:How to obtain ESI Registration in India and Returns Filing Procedure

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Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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