{"id":1528,"date":"2019-12-06T07:02:13","date_gmt":"2019-12-06T07:02:13","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1528"},"modified":"2024-07-02T16:57:39","modified_gmt":"2024-07-02T11:27:39","slug":"how-to-obtain-esi-registration-in-india-and-returns-filing-procedure","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/","title":{"rendered":"How to obtain ESI Registration in India and Returns Filing Procedure"},"content":{"rendered":"\n<p class=\"has-drop-cap\">ESI Registration is a certification provided to almost all companies in India for providing medical, maternal and disablement benefits. However, not all employers need to obtain ESI Registration or ESIC Registration based on the number of people employed by them. This article focuses on ESI Registration, the benefits of having one and the penalty which you have to pay if you don\u2019t obtain ESIC Registration.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#What_is_ESI_Registration\" >What is ESI Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#Who_needs_to_obtain_ESI_Registration_in_India\" >Who needs to obtain ESI Registration in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#What_are_The_Benefits_of_ESIC_Registration_in_India\" >What are The Benefits of ESIC Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#Documents_required_for_ESI_Registration_in_India\" >Documents required for ESI Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#Procedure_for_ESI_Registration_in_India\" >Procedure for ESI Registration\nin India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#ESI_Return_Filing\" >ESI Return\nFiling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#Offences_and_Penalties\" >Offences and Penalties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/how-to-obtain-esi-registration-in-india-and-returns-filing-procedure\/#In_Conclusion\" >In Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_ESI_Registration\"><\/span>What is ESI Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The<strong>\u00a0Employee State Insurance Act of 1948<\/strong>\u00a0is an act that provides benefits to employees in case of sickness, maternity and employment injury. After that, to provide those benefits to the employees by the employer, there was a need to set up a provision to provide certification to companies providing these benefits to its employees.\u00a0<a href=\"https:\/\/corpbiz.io\/esi-registration\"><strong>ESI Registration<\/strong><\/a>\u00a0is the certification that needs to be obtained by such companies employing over ten people (20 in some states) and taking maximum salary of Rs. 21, 000\/-per month and minimum wages x 6 x 6.5%. This scheme mandates that the employer shall contribute an amount of 3.25% from the entire monthly salary to be paid to the employee while the employer needs to contribute merely 0.75% of his monthly salary. The only exception to the employee in paying contribution is employees whose salary is less than Rs. 176\/- per day.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_needs_to_obtain_ESI_Registration_in_India\"><\/span>Who needs to obtain ESI Registration in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Under section 1 (5) of the ESI Act, 1948, the following entities need to obtain ESIC Registration;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Cinemas<\/li>\n\n\n\n<li>Shops<\/li>\n\n\n\n<li>Restaurants or Hotels only engaged in sales.<\/li>\n\n\n\n<li>All Road Motor Transport Establishments<\/li>\n\n\n\n<li>Every newspaper establishments (which are not covered under the factory act)<\/li>\n\n\n\n<li>Private Educational Institutions<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_The_Benefits_of_ESIC_Registration_in_India\"><\/span>What are The Benefits of ESIC Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The advantages of getting the ESIC Registration are as follows;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Benefits in case of illness at the rate of 70% (in the form of salary), in case of any certified sickness and which may last for a maximum of 91 days in any year<\/li>\n\n\n\n<li>Medical Benefits to the employee and their family members<\/li>\n\n\n\n<li>Maternity benefits to women who are pregnant in the form of paid leaves<\/li>\n\n\n\n<li>In cases, if any employee dies at work, then 90% of the salary is given to his direct dependents every month after the death of the employee<\/li>\n\n\n\n<li>Same as the above point in case of disability of the employee<\/li>\n\n\n\n<li>Funeral expenses<\/li>\n\n\n\n<li> Old age care medical expenses <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_ESI_Registration_in_India\"><\/span>Documents required for ESI Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The documents required for ESIC Registration are as follows;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Registration certificate obtained either under the following acts:<\/li>\n\n\n\n<li>Factories Act<\/li>\n\n\n\n<li><a href=\"https:\/\/corpbiz.io\/shop-establishment-license\"><strong>Shops and Establishment Act<\/strong><\/a><\/li>\n\n\n\n<li>The Certificate of Registration in case of a Company, and the Partnership deed in case of a Partnership firm<\/li>\n\n\n\n<li>(MOA)&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/\"><strong>Memorandum of Association<\/strong><\/a>&nbsp;and (AOA) Articles of Association of the      Company<\/li>\n\n\n\n<li>List of all employees working in the business establishment<\/li>\n\n\n\n<li>The PAN Card of the Business Entity as well as all the employees working in the organization<\/li>\n\n\n\n<li>Compensation details of the employees<\/li>\n\n\n\n<li>A cancelled cheque from the Bank Account of the Company<\/li>\n\n\n\n<li>A list of Directors of the Company<\/li>\n\n\n\n<li>Also a list of the Shareholders of the Company<\/li>\n\n\n\n<li>A register containing the attendance details of the employees<\/li>\n<\/ul>\n\n\n\n<p>Thereafter\ncollecting all the above-mentioned documents, the following procedure needs to\nbe followed for registering under the ESI Scheme;<\/p>\n\n\n\n<ul>\n<li><strong>Form No \u2013 1&nbsp;<\/strong>is to be downloaded and filled which is the Employers Registration Form<\/li>\n\n\n\n<li>After downloading the PDF version of the form and filling it, it has to be submitted\u00a0on the\u00a0<strong>ESI website<\/strong>\u00a0itself along with the above-mentioned documents.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_ESI_Registration_in_India\"><\/span>Procedure for ESI Registration\nin India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following steps are involved in the ESI Registration procedure;<\/em><\/strong><\/p>\n\n\n\n<p><strong>Step 1: Login to ESIC Portal<\/strong><\/p>\n\n\n\n<p>The employer should click on www.esic.in to register as an employer under the ESI Act and on home page select the \u2018Click here to Login\u2019. They will fill up the required details and sign up. <\/p>\n\n\n\n<p><strong>Step 2: Confirmation mail<\/strong><\/p>\n\n\n\n<p>The\nemployer shall receive a confirmation email which shall contain the username and password\ndetails for both the\nemployee and employer for getting registered under the ESIC scheme<\/p>\n\n\n\n<p><strong>Step 3:<\/strong> <strong>Employer\nRegistration Form-1 <\/strong><\/p>\n\n\n\n<p>Log in to the ESIC portal\ntogether with the given username and password. Click on the option for \u2018New\nEmployer Registration\u2019. The employer shall select the \u2018Type of Unit\u2019 from the\nlist and then click on the \u2018Submit\u2019 button. Then the employer will have to fill\nthe details in the \u2018Employer Registration \u2013 Form 1\u2019and click on the \u2018Submit\u2019\nbutton. <\/p>\n\n\n\n<p><strong>Step 4: Payment for Registration <\/strong><\/p>\n\n\n\n<p>After submission of the\nForm-1, the employer needs to fill the amount to be paid in the \u2018Payment of\nAdvance Contribution\u2019 page and select the payment mode. The employer shall pay\nthe advance contribution for the time period of 6 months. <\/p>\n\n\n\n<p><strong>Step 5: Registration Letter <\/strong><\/p>\n\n\n\n<p>On successfully paying the advance\ncontribution of six months the Registration Letter (C-11) is sent to the\nemployer which contains 17 digits Registration Number by the ESIC department.\nThis Registration Letter (C-11) is a legally binding proof of registration of\nthe employer.<\/p>\n\n\n\n<p>Furthermore, any change in the company or any change\nin its employees has to be mandatorily be intimated to the ESIC<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ESI_Return_Filing\"><\/span>ESI Return\nFiling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After\nobtaining ESIC Registration, you have to file ESI Returns twice a year.<\/p>\n\n\n\n<p><strong><em>Furthermore, you need to attach the following documents to file ESI\nReturn;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Employees Attendance Register<\/li>\n\n\n\n<li>Register of wages<\/li>\n\n\n\n<li><strong>Form 6 \u2013 Register<\/strong><\/li>\n\n\n\n<li>Register of any accidents which have occurred on the premises of the business<\/li>\n\n\n\n<li>Monthly returns and challans<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Offences_and_Penalties\"><\/span>Offences and Penalties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The amount deducted from the wages of\nemployee as an employee contribution is considered to have been endowed to the\nemployer. Therefore, it is the responsibility of the employer to deposit the\ncontribution with the ESI. <\/p>\n\n\n\n<ul>\n<li>In case\nof any delayed payment or non-payment of the Employee\u2019s contribution deducted\nfrom the employees income amounts to \u2018Criminal Breach of trust\u2019 is punishable\nunder IPC sections 406, 409 and it is also an offence u\/s 85 (b \u2013 g) of the ESI\nAct. <\/li>\n\n\n\n<li>Non-payments,\nfalsifying payments or delayed payments under ESI Act may impose with\nimprisonment up to 2 years and fine of an amount up to Rs 5,000.<\/li>\n\n\n\n<li>Consequences\nof Delayed Payment &#8211; An employer on failure to pay the contribution within the specified\ntime limit in accordance with the regulation shall be liable to pay a simple\ninterest at 12% rate per annum in reference of everyday delay or any default in\npayment of the contribution.<\/li>\n\n\n\n<li>The penal\nprovisions for Non-Payment or Delay in Payment of Contribution &#8211;<\/li>\n<\/ul>\n\n\n\n<p>The company may charge and recover the damages in accordance with the Regulations at the given below following rates, which shall not be beyond the amount of contribution payable in default or in case of delay in payment of the contribution.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Period of delay\n  <\/td><td>\n  Rate of damages in % p.a\n  <\/td><\/tr><tr><td>\n  Less than 2 months\n  <\/td><td>\n  5%\n  <\/td><\/tr><tr><td>\n  2 to 4 months\n  <\/td><td>\n  10%\n  <\/td><\/tr><tr><td>\n  4 to 6 months\n  <\/td><td>\n  15%\n  <\/td><\/tr><tr><td>\n  6 months and above&nbsp;\n  <\/td><td>\n  25%\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>Under Section 85(a) the employer is\nliable for the first time for prosecution, and in case he repeats the offence,\nhe shall be liable for enhanced punishment with every repetition. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_Conclusion\"><\/span>In Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>ESI Act of 1948<\/strong>&nbsp;provides with the regulations and guidelines of providing various benefits to the employees by the employers in case of illness, or death of an employee at the place of work. Also, companies holding the ESI Registration in India have to provide maternity benefits to pregnant ladies of the company in the form of paid leaves. Furthermore, every employee of such company enjoys various advantages mentioned in the ESI Act after registering under the ESI Scheme.<\/p>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/apply-for-epf-registration-online\/\" target=\"_blank\" rel=\"noopener noreferrer\"> How to apply for EPF Registration online?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ESI Registration is a certification provided to almost all companies in India for providing medical, maternal and disablement benefits. However, not all employers need to obtain ESI Registration or ESIC Registration based on the number of people employed by them. This article focuses on ESI Registration, the benefits of having one and the penalty which [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":1529,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[213],"tags":[214],"acf":{"service_id":"14"},"authorName":"Tanya Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190703-WA0001__01-150x150.jpg","authorDescription":"Tanya is working as writer &amp; editor from past 2 years with experience in covering startup and technology related topics.","postViews":7376,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1528"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1528"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1528\/revisions"}],"predecessor-version":[{"id":65107,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1528\/revisions\/65107"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1529"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}