What is ESIC Registration
ESI (Employees’ State Insurance) registration is a mandatory process for businesses operating in India, governed by the Employees’ State Insurance Act. This registration is essential for employers of establishments with more than 10 employees, including those in sectors like manufacturing and services, and even businesses such as newspaper establishments. The ESI scheme offers vital social security benefits to employees, providing medical benefits and financial protection in the event of sickness, injury, or maternity.
At eTaxcart, we ensure that your business navigates the ESI registration process with ease and compliance. We assist you in completing the entire procedure, which includes registering through the official ESIC website or the Shram Suvidha Portal. The registration process requires submitting several key documents, including the company’s PAN card, Registration Certificate, Certificate of Incorporation, and address proof such as utility bills. Additionally, a cancelled cheque and Partnership Deed (if applicable) are necessary. You will also need to provide details about the employees, including their mobile numbers and email addresses.
Once successfully registered, your business will receive a unique 17-digit ESIC code number. This code is crucial for ongoing compliance, such as making monthly contributions, tracking payments, and ensuring that your employees, referred to as “Insured Persons,” receive their entitled benefits.
The ESI scheme benefits employees by offering comprehensive medical coverage at ESIC hospitals and approved medical institutions. Employees and their families are eligible for a range of services, including occupational health care, maternity leave, and employment injury compensation. Moreover, the scheme provides cash benefits for employees during illness or disability, safeguarding their financial stability during challenging times.
For employers, the ESI registration process also brings several obligations. Employers are required to contribute monthly based on their employees’ wages, with the contribution rates set by the ESIC. These contributions must be paid into a designated bank account within the prescribed timelines.
Employers are also responsible for maintaining accurate records, such as an attendance register, and ensuring that ESI returns are filed within the due dates. Failure to meet these compliance requirements can lead to penalties under the Factories Act and other relevant regulations set by the Government of India.
In addition to fulfilling legal obligations, ESI registration is beneficial for businesses as it promotes a healthier and more secure workforce. It enhances employee welfare and helps businesses cultivate a positive working environment, which in turn can lead to better employee retention and morale.
At eTaxcart, we streamline the ESI registration process, ensuring you meet all requirements promptly and accurately. We also offer continued support to help you stay compliant with ongoing contributions and filings, ensuring that your business remains aligned with all regulatory standards.
Advantages of ESIC Registration
ESIC (Employees’ State Insurance Corporation) registration offers a wide range of advantages to both employers and employees.
Medical Benefits for Employees and Dependents
Registered employees and their dependents are entitled to comprehensive medical care, including treatment at ESIC-run hospitals and approved private medical institutions, ensuring access to quality healthcare.
Maternity Benefits
Female employees earning under ₹21,000 per month are eligible for maternity benefits, which include medical care and cash assistance during pregnancy, post-delivery, miscarriage, and even adoption.
Sickness Benefits
Employees who are unable to work due to illness can avail of cash benefits from ESIC, which typically cover up to 70% of their average daily wages, providing financial stability during sick leave
Disability Benefits
Employees who suffer from work-related injuries or disabilities can receive compensation under the ESIC scheme, including medical treatment and cash benefits for long-term disabilities.
Injury Benefits
Employees suffering from an occupational injury are entitled to immediate medical care, along with compensation for lost wages during their recovery period.
Funeral Expenses
The ESIC scheme provides funeral benefits to the families of employees in the event of their death due to a workplace injury or employment-related conditions.
Pension for Dependents
In case of the employee's death, their dependents, such as the spouse and children, are eligible to receive a pension under the ESIC scheme, ensuring financial security for the family.
Cash Benefits During Periods of Unemployment
Employees who lose their job under specific conditions can access cash benefits, helping them manage financial difficulties while they search for new employment.
Access to Specialized Health Services
ESIC provides employees with access to specialized healthcare services, including outpatient and inpatient care, surgeries, and other necessary medical treatments, ensuring holistic healthcare coverage.
Promotion of Employee Welfare
By registering under ESIC, employers show their commitment to the welfare of their employees, fostering trust, and improving employee morale and retention.
Who Requires ESI Registration?
- As per the ESI Act of 1948, it is mandatory for all factories, establishments, and certain other entities, including private educational institutions, with more than 10 employees (or 20 in some states), to register for ESI. This requirement applies to businesses that are registered under the Employees' State Insurance Corporation (ESIC). The scheme covers employees earning up to ₹21,000 per month (or ₹25,000 for employees with disabilities), making them eligible for a range of benefits.
- Employers are required to contribute a percentage of their employees' monthly wages towards the ESI fund. Contribution rates are determined by the Ministry of Labour and ensure that employees benefit from healthcare services, disability coverage, and other social security provisions. Both the employer and employee contribute to the scheme, although the employer's share is generally larger.
- To complete the ESI registration, employers need to submit essential documents such as the business's PAN Card, the list of employees, and the Articles of Association (for companies). The registration process is streamlined through the ESIC portal, where a unique 17-digit registration number is issued to the employer. For businesses already registered, employers can use the Employer Login on the ESIC portal to manage contributions and ensure ongoing compliance.
- In addition to these documents, businesses must also provide further details, such as the establishment’s health insurance scheme, and adhere to regulations set forth by both the state and central government. This includes businesses covered under the Factory/Establishment Acts, as well as entities like private educational institutions.
Documents required for online ESI registration
If an appointment is required, please ensure to bring the following documents to the ESI:
This updated process is part of the government’s effort to ensure secure and efficient GST registration.
Our Pricing Plans
Choose the plan that best fits for you. We have three major plans to offer.
Starter
- ESIC registration filing
- Employee less than 10
Elite
- ESIC registration filing
- Employee less than 50
- One Digital Signature Certificates One year ESI return filling
- One year ESI return filling
Why Choose eTaxcart for ESI Registration?
At eTaxCart, our mission is to make tax and compliance stress-free — so you can focus on growing your career, your business, or your next big idea.
Simple and Quick Process
We streamline the ESI registration process, making it smooth and hassle-free, so you can focus on your core business operations.
Affordable Fees
Our ESI registration services are cost-effective, providing excellent value for your investment in ensuring compliance and employee welfare.
Expert Guidance
Our experienced professionals will guide you through every step of the registration process, ensuring timely and accurate completion.
Frequently Asked Questions
Here are the answers of the questions we received frequently.
ESI registration is mandatory for businesses with 10 or more employees, as long as the employees earn a monthly wage of ₹21,000 or less. However, in some cases, if your establishment is located in a non-metro city, the requirement may be reduced to 20 employees. This helps to ensure that even small businesses can provide social security benefits to their employees.
ESI registration is required for any business or establishment with 10 or more employees. However, the applicability can depend on factors such as industry type, location, and the nature of operations. Some businesses, like seasonal establishments or smaller operations, may be exempt from the mandatory ESI requirement depending on the size and scope of their operations.
ESI registration remains valid as long as your business continues to meet the eligibility criteria, such as maintaining the required number of employees and consistently fulfilling the monthly contribution requirements. There is no expiration date for the registration unless the company closes down, employees are reduced below the minimum threshold, or you request cancellation.
ESI contributions are made through the official online portal provided by the Employees’ State Insurance Corporation (ESIC). Employers need to log in to the portal, input employee details, and make the necessary monthly contributions. These contributions must be deposited before the 15th of every month to stay compliant and avoid penalties.
ESI offers a wide range of benefits for employees, including medical care, sickness benefits, maternity benefits, funeral expenses, and disability benefits. In case of work-related injuries or death, ESI also covers the employees’ families. This comprehensive coverage ensures the well-being and financial support of employees during difficult times.
Yes, employees can check their ESI benefits and the status of their contributions by logging into the ESI portal using their unique ESI number. The portal allows them to view their account details, check their eligibility for various benefits, and access claims information, providing them with real-time updates on their benefits.
Yes, employers can update employee details such as salary, designation, and personal information after ESI registration. These updates should be done through the ESI portal, where employers can modify and maintain accurate records. Keeping employee information up to date is essential for ensuring that the right contributions are made and benefits are provided to the employees.
Yes, ESI registration is required for contractors and temporary workers employed in an establishment with 10 or more employees. They are covered under the same ESI provisions as permanent employees, and contributions must be made accordingly. Ensuring their inclusion in ESI registration is vital for legal compliance and securing their welfare benefits.
eTaxcart simplifies the ESI registration process by handling all the paperwork, ensuring that your registration is completed correctly and promptly. Our team will assist you in submitting the necessary documents, updating employee details, and making timely contributions. We aim to reduce your workload and ensure you comply with all legal requirements to avoid penalties.
eTaxcart provides comprehensive support to ensure your company remains compliant with ESI regulations. From helping you file returns on time, maintain employee records, to ensuring the timely payment of monthly contributions, we handle all aspects of ESI compliance. Our expert services allow you to focus on growing your business while we ensure your employees receive the benefits they are entitled to without hassle.
