Proof of constitution of the business (Incorporation Certificate / MOA / AOA / Partnership Deed / LLP Agreement etc.)
Proof of Premises
KYCs of the Directors / Partners / Proprietor
No. of Employees
Major Activity
Photograph of the Authorized Person / Proprietor
Scanned Signature of Authorized Person / Proprietor
Agreement in case of Voluntary coverage
Digital Signature (Class 2) of the Authorized Person / Proprietor
In India, eligibility for ESI registration is determined on the basis of two categories: on the basis of employee & on the basis of employer. We have discussed this in details as under:
For enterprises where the number of employees are more than 12/ 20 (who mandatorily obtain registration) contributes a minimum 4% of Gross wages. The portion of contribution divided into 2 parts: contribution by employee & contribution by employer.
| Contribution By | Contribution Rate |
|---|---|
| Employee Share | 0.75% of gross wages |
| Employer Share | 3.25% of gross wages |
| Total Contribution | 4.00% of gross wages |
There is no limit on the treatment expenses, full medical expenses borne by the employer.
Employees receive 70% of wages for 91 days of certified sick leave.
Employees receive 80% of wages for specified chronic or long-term diseases.
Employees receive 100% of wages for family planning (7 days for male vasectomy & 14 days for female tubectomy)
Female employees receive 100% of wages up to 26 weeks during maternity leave & Rs. 7,500/- cash bonus on delivery of a child where ESIC infrastructure is not available in the hospital.
Employees receive 90% of wages from the day one of the injury until the employee recovers.
Employers can deduct contribution amounts as an expense in p&l.
Create competitive advantage in the market.
Protect employers from legal compliances & damages.
The registration for ESI is easier now, an online form filing option is available. Government of India has taken up an initiative to simplify the registration process under labour laws by establishing a single window system for the registration under various Acts applicable on labour through www.shramsuvidha.gov.in
Step 1: Visit site: Visit to the official website https://shramsuvidha.gov.in
Step 2: Create login credentials: Create your login credentials on Shram Suvidha Portal.
Step 3: Click on "Registration For EPFO-ESIC" & select “Apply for New Registration”.
Step 4: Application Form: Fill up the application form available online for the registration.
Step 5: Documentation & DSC: Provide the prescribed documents required to be submitted along with the application form and sign the form using DSC (DIGITAL SIGNATURE CERTIFICATE).
Step 6: Application Submit: Once the application is complete, it will be filed with the concerned authority for verification of the credential filled therein.
Step 7: Pay advance contribution: On validation of form, pay advance contribution amount via online mode.
If the business fails to comply with the ESI scheme, there will be penalties as a serious offence under the ESI Act, 1948. Easethebiz has simply the penalties provision for you quick reference as under:
| Period of delays | Rate of damages |
|---|---|
| Less than 2 months | 5% |
| 2 months - 4 months | 10% |
| 4 months - 6 months /strong> | 15% |
| 6 months & above | 25% |
A compulsory simple interest rate of 12% per annum from the date of contribution when contribution has to be made to the last date when contribution actually made.
On non-compliance with the provision of ESI, lead to criminal prosecution of the employer:
| Heading | Employees' Provident Fund | Employees' State Insurance |
|---|---|---|
| Primary Objective | To build a retirement corpus and provide financial security post-employment. | To provide medical treatment and financial aid during sickness, maternity, or injury. |
| Governing Body | EPFO (Employees' Provident Fund Organisation). | ESIC (Employees' State Insurance Corporation). |
| Company Eligibility | Mandatory for establishments with 20 or more employees. | Mandatory for factories/businesses with 10 or more employees. |
| Employee Eligibility | Mandatory for employees with a basic salary up to ₹15,000 / month. | Mandatory for employees with a gross monthly salary up to Mandatory for employees with a gross monthly salary up to ₹21,000 / month. |
| Total Contribution | 24% of basic salary + DA (12% from Employee + 12% from Employer). | 4% of gross wages (0.75% from Employee + 3.25% from Employer). |
| Withdrawal / Benefits | Accumulated amounts with interest can be withdrawn at retirement, resignation, or partially for emergencies. | Cannot be withdrawn. It acts like an insurance premium; you use it to access medical benefits. |
Easethebiz is a leading platform for providing services related to the ESI registration. Registration under ESI is mandatory and voluntary according to the applicable conditions. However, companies having ESI registration & its regular compliance are considered reputable and outshine others in the market and we helped numerous clients to obtain their ESI registration & monthly compliances on time. We believe in accuracy and transparency, our professionals with expertise in their field complete each assigned work with the same level of dedication.
Get Free Consultation"Easethebiz provided excellent support for our ESI Registration. Their team handled the entire process professionally and completed the registration on time."
"The ESI Registration process was smooth and hassle-free. The team guided us at every step and ensured quick completion."
"Highly satisfied with the service. Easethebiz made ESI Registration easy to understand and handled all documentation efficiently."
"Professional and responsive team. They completed our ESI Registration without delays and provided excellent support throughout."
"Excellent experience with Easethebiz. Their experts helped us obtain ESI Registration quickly and ensured full compliance with the requirements."
Private Limited Company Registration
ESI Registration is a government registration under the Employees' State Insurance Scheme that provides medical and financial benefits to eligible employees and their families.
No. ESI Registration becomes mandatory when a business meets the prescribed employee limit and falls under the applicability criteria of the ESI Act.
Employees earning gross wages up to ₹21,000 per month are generally eligible for ESI benefits. For employees with disabilities, the wage limit is ₹25,000 per month.
The scheme provides medical treatment, sickness benefits, maternity benefits, disability compensation, dependent benefits, and funeral expenses.
The total contribution is 4% of gross wages, with 0.75% contributed by the employee and 3.25% contributed by the employer.
Yes. Eligible establishments can choose voluntary ESI registration and extend social security benefits to their employees.
The registration process is generally completed within a few working days, subject to successful verification of documents and application details.
Documents typically include PAN card, address proof, business registration proof, employee details, bank account information, and other supporting documents as required.
Failure to comply with ESI requirements may result in interest, monetary penalties, legal action, and prosecution under applicable laws.
ESI Registration helps businesses comply with labour laws while providing employees with healthcare and financial protection during medical emergencies, maternity, or workplace injuries.
