ESI Registration
Expert Assistance for ESI Registration
Employee State Insurance (ESI) registration is a legal requirement for businesses in India, managed by the Employee State Insurance Corporation (ESIC). This scheme provides health insurance and social security benefits to employees earning a specific wage, including coverage for their families. It generally applies to businesses with 10 or more employees, depending on the type and location of the business. At Captigma, our team of experts is here to help you with the ESI registration process.
ESI Scheme
ESI (Employee State Insurance) is a government scheme established under the ESI Act of 1948 to provide social security benefits to workers in India. The program is managed by the Employee State Insurance Corporation (ESIC). It offers benefits like medical care, disability, maternity benefits, and more to workers who earn a specified monthly wage, as well as their dependents.
To be part of this scheme, employers must register their establishments with ESIC and provide details of their employees for inclusion. The registration process involves various legal requirements, and businesses must ensure they meet all compliance standards set by the government.
Navigating the complexities of ESI registration and ensuring ongoing compliance can be challenging for employers, especially with the intricate rules and regulations involved. This is where Captigma comes in. Our team of ESI experts is dedicated to helping businesses complete the ESI registration process smoothly and efficiently. We handle the details, ensuring your establishment is properly registered and your employees are covered by the scheme.
By partnering with Captigma, you can stay compliant with ESI regulations and provide your workers with essential social security benefits without the stress of handling the process yourself.
Definition and Scope of Establishments Under the ESI Act
The Employee State Insurance (ESI) Act defines an establishment as any organized business or entity, whether it is a physical shop, office, or another type of workplace, that employs workers. This includes various businesses like retail outlets and commercial shops. If such establishments employ 10 or more workers (or 20 in certain states), and those workers earn up to ₹21,000 per month (or ₹25,000 for individuals with disabilities), the business is required to enroll in the ESI scheme.
The ESI scheme provides social security benefits to workers, such as medical care, sickness benefits, and maternity benefits. Employers are responsible for registering their business with the Employee State Insurance Corporation (ESIC) and ensuring that the workers meet the eligibility criteria for coverage.
Businesses must comply with the ESI regulations to avoid penalties and ensure their employees receive the benefits they are entitled to. The ESI Act applies to a wide range of industries and businesses across India, and it is important for employers to stay informed about the rules and ensure their registration is in order.
At Captigma, we assist businesses in navigating the ESI registration process, ensuring that your company meets all legal requirements and your workers receive the protection they deserve.
Who is eligible for ESI Registration?
The Employee State Insurance (ESI) Act applies to various types of businesses and organizations, both state and central government-affiliated, as listed under Section 1(5).
For state government-affiliated entities, the following businesses must register with the Employee State Insurance Corporation (ESIC) if they have 10 or more employees:
- Retail outlets
- Hotels and dining establishments that focus on sales
- Movie theatres and preview facilities
- Road transportation-related establishments
- Newspaper organizations (except those covered by the Factory Act)
- Private healthcare facilities
- Private educational institutions
- Casual workers employed by Municipal Corporations or other bodies
In addition, the Central Government has expanded the ESI coverage to include:
- Retail outlets
- Hotels and dining establishments
- Road transportation businesses
- Cinemas and preview theatres
- Newspaper organizations
- Businesses involved in:
- Insurance
- Non-Banking Financial Companies (NBFCs)
- Port trusts
- Airport authorities
- Warehousing
For these central government-related businesses, ESI registration is mandatory if they employ 20 or more people.
In simple terms, these businesses, depending on whether they are state or central government-affiliated, must register for ESI coverage if they have the required number of employees, ensuring workers are eligible for social security benefits under the ESI scheme.
Eligibility criteria for ESI registration
The eligibility criteria for ESI registration are as follows:
Employee Count: Businesses, factories, or shops with more than 10 employees are required to register for ESI benefits under Section 2(12) of the ESI Act, 1948.
Medical Benefits: All workers and their families can receive medical benefits at ESIC-run hospitals and dispensaries.
Maternity Benefits:
- Women employees earning less than ₹21,000 per month are eligible for maternity benefits under the ESI Act.
- Individuals with disabilities earning less than ₹25,000 per month can also avail of these benefits.
These maternity benefits include medical care and cash benefits for situations like:
- Pregnancy (before and after delivery)
- Medical termination of pregnancy
- Miscarriage
- Adoption
In simple terms, businesses with more than 10 employees need to register for ESI, and workers can access health benefits and maternity support if they meet the income criteria.
Advantages of ESIC Registration
ESIC registration provides employees with a range of benefits to protect their health, income, and family. Here are the key benefits:
Sickness Benefit: Employees can receive 70% of their wages for up to 91 days a year during sickness.
Extended Sickness Benefit: For severe and long-term diseases, employees get 80% of their wages for up to two years.
Enhanced Sickness Benefit: Employees undergoing sterilization receive full wage compensation—7 days for vasectomy and 14 days for tubectomy.
Medical Benefits: Employees and their families can access medical care, ensuring their health is well taken care of.
Retired Medical Benefits: Retired employees and their spouses can continue receiving medical benefits by paying an annual premium of ₹120.
Maternity Benefit: Pregnant women receive full wages for 26 weeks of maternity leave, with an option to extend by a month.
Dependents’ Benefit: If an employee dies due to a work-related injury, their dependents receive 90% of the employee’s wages monthly.
Temporary Disablement Benefit: Employees who suffer from a work-related injury receive 90% of their wages until they recover.
Permanent Disablement Benefit: Employees with permanent disabilities get 90% of their wages as per the disability assessment.
Funeral Expenses: ₹15,000 is provided to cover funeral costs for dependents or the person handling the last rites.
These benefits ensure the well-being of employees and their families in case of health or work-related issues.
Documents Required for ESI Registration
For ESI (Employee State Insurance) Registration, businesses must provide certain documents during the online registration process. These documents are required in digital or electronic format and do not need to be physically submitted. Here’s a list of the necessary documents:
Business Registration Proof: Based on the type of business:
- Factory Registration Certificate (Factories Act).
- Shop and Establishment Registration Certificate.
- Company Registration Certificate (for companies).
- Partnership deed (for partnership firms).
- GST Registration Certificate.
Company’s Founding Documents:
- Memorandum of Association (MoA) and Articles of Association (AoA) for companies.
Establishment Address Proof: One of the following:
- Recent utility bill (electricity, gas, or telephone, no older than 3 months).
- Rental agreement for the establishment’s premises.
- Property tax receipt.
Employee Details: A list of all employees working in the establishment.
PAN Cards: PAN details for both the business and all employees.
Employee Salary Information: Salary/wages details for all employees.
Banking Information: A cancelled cheque from the business’s bank account.
Company Leadership Details: A list of company directors and shareholders.
Employee Attendance Register: Record of employee attendance.
These documents ensure that your business meets the requirements for ESI registration and that your employees are eligible for ESI benefits.
Compliances After ESIC Registration
After ESI (Employee State Insurance) registration, businesses must follow certain compliance rules and file ESI returns regularly to ensure everything runs smoothly and according to the law. The key compliance requirements are:
Attendance Register: Keep a record of all employees’ attendance to ensure proper documentation and compliance.
Register of Wages: Maintain a detailed list of employees’ wages. This helps in tracking salary information and ensures compliance with ESIC rules.
Inspection Book: Keep a book to record any inspections that occur on the premises. This helps maintain transparency and meet regulatory standards.
Monthly Return and Challan: Submit monthly returns and payments (challans) within 15 days of the following month. This includes employee details, attendance, and contributions to the ESIC.
Accident Register: Keep a record of any workplace accidents. This is important for safety compliance and helps ensure that accidents are properly documented.
These steps are crucial for maintaining ESI compliance, protecting workers’ rights, and avoiding penalties.
Why Choose Captigma for ESI registration?
Captigma’s team, consisting of experienced chartered accountants and legal professionals, provides top-notch ESI and PF registration services in India. We understand the importance of ESI registration for employers and handle the process with great care and attention to detail. Our ESI registration process is simple, fast, and designed to save you time.
We focus on transparency, keeping you updated regularly throughout the process. If you have any questions during the ESI registration or filing, our expert team is always available to assist you and provide the support you need.