Get Your ESI Registration
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At BizSetupGlobal, we provide comprehensive accounting and compliance services designed to empower firms like yours to thrive and succeed.
Must Know Facts about ESI Registration
- Employee State Insurance or ESI is a scheme commenced by the Government of India to offer workers medical, monetary, and other advantages. An autonomous authority manages ESI – Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment.
- By law, any company with more than 10 employees must have ESI. In some states, the number of employees is 20. The insurance is deducted from their pay for employees earning more than ₹21,000 per month, including basic salaries and dearness allowance.
- Also, taxpayers with a turnover of less than ₹1.5 crore can opt for the composition scheme to eliminate tedious GST formalities and pay GST at a fixed turnover rate.
Benefits of ESI Registration
Medical Aid
From the very first day of employment, ESI Registration members and their families are entitled to complete medical care and insurance.
Disablement Benefits
Disabled employees can get 90% of their monthly salaries as disablement benefits.
Sickness Benefits
Absence from work during illness can be taken for a maximum of 91 days per year, along with 70% of the monthly wages.
Dependent Benefits
In the unfortunate event of the demise of an employee during employment, the dependents of the deceased will receive 90% of their monthly salary.
Funeral Expenses
The deceased employee's family is entitled to an additional amount of ₹10,000 towards funeral expenses.
Vocational Rehabilitation
Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS.
Confinement Expenses
In the case of the confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.
Old Age Medical Care
An annual payment of ₹120 ensures medical care benefits for retiring ESI employees or those opting for VRS/ERS.
Physical Rehabilitation
Available to employees in the case of physical disablement due to an employment injury or occupational hazards.
Maternity Aid
Pregnant women are allowed maternity benefits that are payable up to twenty-six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers must contribute their wages for 70 days in the preceding two contribution periods.
Extended Sickness Benefits
ESI members suffering from chronic diseases can avail of the extended sickness benefit for up to 2 years once the standard sick leave of 91 days has expired.
Enhanced Sickness Benefit
Registered ESI members willing to undergo sterilisation procedures are eligible for enhanced sickness benefits of 100% of their daily average wages. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission to the hospital.
ESI Registration Online Process
When you choose BizSetupGlobal for ESI New Registration, we complete it in three simple steps that take the minimum possible time.
1. Form Filling
The ESI Online Registration form is filled by you completely, and the necessary documents are submitted
2. Verification
Every detail you provide is cross-checked to ensure everything runs smoothly and smoothly. This may take a maximum of 12 days.
3. Submission
‘ESI registration’ with ‘ESI application’, within ‘The ESI registration’ along with other legal paperwork is submitted by us, which requires 2 working days.
Your part of the ESI Online Registration is completed at this point. The government reviews the application and processes your registration. Once granted, BizSetupGlobal sends you the following:
- The 17-digit identification code number.
- Employee insurance number.
- Temporary identity card.
Eligibility for ESI Registration in India
The general rule is that you must have 10 or more employees to be eligible for (Employees’ State Insurance) ESI registration. However, in some areas, ESI is only applicable if there are more than 20 employees.
Other eligibility criteria that need to be fulfilled are:
- Any employee whose gross salary is up to ₹21,000 per month can avail of this with the employer’s help.
- Establishment registered with EPFO.
- The contribution to ESI is 6.5% of the gross salary. It is divided as:
- 4.75% by the employer.
- 1.75% by the employee.
- All employees with a salary of less than ₹21,000 must have ESI in industrial units where there is a risk of injury or health issues occurring on the business premises.
Documents Required for Online ESI Registration
To register for ESI, the employer has to submit the following documents along with the application:
- The registration certificate or license issued by – Shops and Establishments/Factories Act(Required for ESI online registration)
- Address proof
- Rent receipt of the occupied premises, mentioning its capacity.
- Copy of PAN card.
- Copy of bank statement.
- Photocopy of the last building tax/property tax receipt.
- Memorandum and Articles of Association or Partnership Deed registration or Trust Deed registration – depending on the applying entity.
- Photocopy of Registration.
- Certificate of commencement of production.
- Registration No. of CST/ST/GST.
Note: For ESI filings, a monthly pay sheet is required to compute each employee’s contribution amount.
Compliances After ESI Registration
Initially, the Employees' State Insurance Act of 1948 registration status will be active. The company must start following the ESI Act of 1948 within 6 months of its establishment.
Suppose the company is not immediately subject to the Employees' State Insurance Act 1948. In that case, it can make its registration number dormant within 6 months by logging in to the system to avoid being penalised for non-compliance. The maximum duration it can choose to be inactive at one time is 6 months.
The company must log in to the ESI website before 180 days expire from the start of the dormant status to extend the inactive mode further.
Returns To Be Filed After ESI Registration
ESI returns need to be submitted biannually after ESI registration. To file these returns, the following documents are necessary:
- Employee attendance register.
- Form 6 Register
- Wages register
- Accidents register (for any incidents that may have occurred on the business premises)
- Monthly returns and challans.
Frequently Asked Questions